Boston Private Announces Third Quarter 2011 Earnings

Vanessa Doctor

27 October 2011

Boston Private Financial Holdings, the US-based financial services organization, has posted a 2 per cent drop in third quarter net interest income from the previous quarter to $45.1 million, citing a difficult market environment.

The result was down 3 per cent from the third quarter of 2010. Total assets under management and advisory figured 10 per cent lower than the second quarter at $18.2 billion and were 2 per cent lower than the year-earlier period owing mostly to market declines. Net net asset outflows for the quarter were at $223 million, compared to the $150 million of net outflows in the prior quarter.

On a more positive note, the company has curbed spending, posting a 5 per cent drop in operating expenses to $55.4 million in the third quarter, from $58.2 million on a linked quarter basis. Year-over-year, costs were down 9 per cent from $61 million.

"These results show continued evidence that our program to return the company to sustainable and acceptable profitability is unfolding as planned. We continue to focus on improving our credit quality, accumulating capital and carefully managing growth while reducing risk and improving the performance of our wealth management and private banking businesses," said Clayton Deutsch, the chief executive and president of Boston Private Financial.

A cash dividend of $0.01 per share was declared, with a record date of 16 November 2011 and payment date of 30 November.