The net income of the Bermuda Monetary Authority increased eighteenfold in 2021 after its regulatory fees increased by $11 million, according to its annual report.

The BMA, Bermuda’s independent financial services regulator, had net comprehensive income last year of $13.3 million, up from $727,000 in the previous year.

David Burt, the Premier and finance minister, tabled the annual report of the Bermuda Monetary Authority in the House of Assembly on Friday.

It showed that total revenue increased 20.19 per cent to $73.09 million, up from 60.81 million.

The increase was said to be mainly due to an $11.42 million increase in revenue from supervisory and licensing fees.

Expenses decreased 0.5 per cent to $59.79 million, down from $60.09 million in 2020. The decrease was mainly due to the $1.27 million decreased amortisation of certain intangible assets.

Licensing fees were $68.67 billion at year-end, compared with $57.24 billion, of which $59 billion was paid by the insurance sector.

Revenue from fines, penalties and other income grew by $1.32 million owing to increased AML fines, insurance fines and late penalty fees.

At year-end, the BMA had 219 full-time permanent employees compared with 217 in 2020.

The report shed light on salaries paid to key staff and fees paid to board members.

The salary of the chief executive officer, currently Craig Swan, is set at $500,000; he is eligible for a performance-based of up to 50 per cent of base salary.

Salaries of the other 12 members of the executive team ranged from $250,000 to $425,000 in 2021 with a performance bonus of up to 35 per cent of salary.

The House heard that board members are paid an annual fee of $20,000, sub-committee chairmen are paid an annual fee of $25,000, and the chairman of the board receives an annual fee of $75,000.

The BMA, with the agreement of the Minister of Finance, added $7.6 million of its net earnings to the general reserve of the BMA.

Mr Burt said this agreement recognised the significant continuing investment required to maintain and enhance the strong, robust and internationally recognised regulatory programme that the BMA has developed and implemented.

The remainder of the net revenue of $5.7 million was repaid to the Consolidated Fund.

The House was advised that the sum paid to the Consolidated Fund represents 50 per cent of the BMA’s income (net of total fines).

In the banking sector, while the number of banks remained the same at four, the BMA reported that the consolidated assets of the sector increased 4.8 per cent, or $1.2 billion, to $26.8 billion in 2021.

This change was in line with an increase in deposit liabilities and is evidenced primarily by cash and deposit liabilities increasing 26.3 per cent to $5 billion (2020: $4 billion).

Investments retained the largest share of total assets at 46.1 per cent (48 per cent: 2020), followed by loans at 32.6 per cent (33.7 per cent: 2020), and cash and deposits at 18.8 per cent (15.6 per cent: 2020).

The loan-to-deposit ratio decreased from 87 per cent to 81 per cent at the end of 2021.

Conversely, the industry recorded a 1.1 per cent increase in gross loans during 2021, increasing from $8.8 billion at the end of 2020 to $8.9 billion.

In the insurance sector, a total of 1,158 companies were registered at the end of 2021, down 35 from 1,193 in 2020.

Sixty-four insurers were registered over the course of the year (67: 2020).

Total capital and surplus was $350 billion in 2020 ($314 billion: 2019), and gross premiums written were $295 billion in 2020 ($198 billion: 2019).

In the investment business sector, 49 licensed investment business providers operated in Bermuda in 2021(2020: 48)

The aggregate total assets under management was $253.2 billion compared with $232.7 billion in 2020.

Seventy-three per cent pertains to European clients while 18 per cent pertains to Bermudian-based clients.

Total assets under administration were $31.5 billion compared with $30.6 billion reported for the prior year.

A total of 799 (829: 2020) licensed investment funds were operating in Bermuda in 2021 with a net asset value of $219.6 billion ($205.81 billion: 2020).

There were 23 (22: 2020) fund administrator licenses in issue at the end of 2021 with $195.5 billion of assets under administration.

The total market capitalisation of the Bermuda Stock Exchange stood at $334 billion at the end of 2021 as compared with $255 billion a year prior.

A total of 281 (2020: 253) new insurance-linked securities were added to the BSX in 2021 increasing the total nominal value to $50.8 billion ($43.01 billion: 2021).

Domestic trading volume totalled three million shares in 2021 (2020: 4.9 million) and was valued at $23.4 million ($25.3 million: 2020).

In reviewing the BMA’s performance, Mr Burt said, the Auditor-General has issued a clean opinion.

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Ministerial Statement Bermuda Monetary Authority Annual Report 2021.pdf