The Bank of Bermuda Ltd. has taken the unprecedented step of releasing its first-half results for the first time since being taken over by HSBC in 2004.

In the past the bank's individual results had been included within those of their parent company HSBC, but this year they have published them in full separately.

And a spokesman said they are planning to release the results on an ongoing half-year basis in the future.

The results are particularly impressive, considering that net profit for the six months ended June 30 were up nine percent compared to the same time last year at $149 million.

Total operating income was equally strong, as the bank brought in $318m for the first half of 2007, again representing an increase of nine percent compared with the first half of 2006.

Average customer loans and advances were $2,276 million this year, which was a rise of $314m or 16 percent in contrast to the same period in 2006, while average customer deposit balances stood at $7,162m for the first half of 2007 ¿ up $6m or one percent compared with last year.

Total assets accounted for $11,057m at June 30, increasing $401m or four percent compared with June 30 2006, with investment funds under management climbing to $15 billion at the end of June - up $4bn or 36 percent compared to the same point last year.

On the staff front, full-time employees increased to 1,704 at June 30, from 1,610 at the halfway stage in 2006.

CEO Philip Butterfield believes that the bank's strong showing proves they are continuing to meet their clients needs.

"Principal business lines have performed well during the first half of 2007," he said.

"Net profit of $149m included $124m from Bermuda-based operations (banking businesses contributed $96m and our insurance business contributed $28m) and $25m from overseas operations, primarily Group Private Banking trust business.

"Total operating income of $318m included $213m from Bermuda banking businesses and $38m from our Bermuda-based insurance business. Overseas operations contributed $67m."

And he reckons the installation of a new banking system has helped to improve efficiency and reduce costs.

"Total expenses were lower in 2007 mainly due to non-recurring systems expenditure in 2006 related to implementation of our new banking system," he said.

"General and administrative expenses also trended lower in 2007 compared to the first half as well as the second half of 2006.

" After excluding one-off gains from the sale of businesses to HSBC Group affiliated companies, net profit for our core banking operation in Bermuda rose by 14 percent compared with a year earlier, and 35 percent compared with the second half of 2006.

"The growth and composition of our balance sheet and higher net interest margins for the period improved our net interest earnings. The strong growth in fee income was driven by record volume increases in our flagship product, the HSBC Corporate Money Funds.

"The bank maintains a strong balance sheet with predominantly high quality, liquid investment assets and a significant, well secured mortgage portfolio.

"Our large, stable customer deposit base ensures that we can continue to fund substantial asset growth. I am particularly pleased to confirm that the bank retained a 'AA-' credit rating issued by Standard and Poor's."