compared with a loss of $1.886 million the previous year.

If one-off restructuring costs of $1.361 million are not included, the Bank made an operating profit of $1.668 million.

Among the exceptional costs were $928,973 in discount on sale of loans, $531,296 in redundancy costs and $170,708 for the employment of temporary staff.

Since dismantling its retail banking sector, the bank's revenue for the 12 months to September 30, 1990, was down by 39 percent ($14.025 million) to $21.978 million But expenses plummeted even further by 46.4 percent ($17.567 million) to $20.310 million.

Interest expenses were cut in half to $14.084 million, while salaries and employee benefits were slashed by 30.5 percent ($1.501 million) to $3.417 million.

President of the bank, Works and Engineering Minister the Hon. Clarence Terceira said: "Last year, we announced plans to complete the restructuring of the Bank and I am pleased to say that these plans have been completed successfully.

"The restoration of profits is the first step in our goal of providing superior shareholder value.

"Our aim must be to provide a wise and rewarding investment. Size will not be the issue.'' Following the scale-down of the Bank's retail activities, the Bank had an "enviable low-risk profile balance sheet'', said Dr. Terceira.

Many of the bank's lendings have been repaid, sold or refinanced elsewhere.

The Bank is now focusing on its historically profitable international, corporate and private banking sectors.

Dr. Terceira added: "We have taken bold but carefully considered steps to reorganise our bank. We're in good shape to face the challenges of the next decade.'' The bank reported an income of 22 cents per share, compared with a loss of $1.32 per share the previous year.

The bank had a deficit of $92,020 at the end of the financial year, compared to a deficit of $501,244 at the end of the previous year.

BERMUDA COMMERCIAL BANK RESULTS PROFIT $307,353 INCOME $21.978 M EXPENSES $20.310 M EXCEPTIONAL COSTS $1.361 M END OF YEAR DEFICIT $92,020 INCOME PER SHARE 22 CENTS.