HSBC Bermuda recorded a $221 million profit before tax during 2009 despite the impact of the economic downturn and continued low interest rates squeezing margins.

That figure decreased 36 percent compared to the previous year, while consolidated total operating income of $633 million for last year represented a nine percent decrease versus 2008.

But total assets were up five percent at $10,757 million year-on-year.

The results come a day after Butterfield Bank announced a $213 million loss for last year.

Michael Schrum, chief financial officer of HSBC Bermuda, said: “2009 has clearly been a challenging year for the bank and its customers, both globally and here in Bermuda. It has been a year characterised by pressure on profitability as a consequence of a slowdown in economic activity, continued low interest rates, causing some margin compression, and ongoing volatility in equity and bond markets which has impacted our investment-related businesses.

“In spite of difficult market conditions, HSBC Bermuda has continued to deliver resilient financial results with a robust and growing balance sheet and strong capital base.”

* Full story in tomorrow’s Business section.