Mortgage and real estate firm Bermuda Home has complained charges levied against wealthy non-Bermudians buying homes are excessive and contrary to the Island's interests.

The company's just-released annual report to shareholders, signed by chairman Donald P. Lines and president and CEO Arthur Haycock, states: "We continue to be concerned over the sporadic sales activity in the upper end of the market, particularly in the category of properties which can be sold to non-Bermudians.

"It is still our opinion that the 22 percent license fee plus stamp duties payable by non-Bermudians on the purchase price is excessive and is seen as being counter-productive and contrary to the interests of the Bermuda Government, the vendors of such properties and Bermuda in general.

"Government taxes should not be so high that they restrict the ability of existing owners to sell their properties, for higher turnover of these properties and spending by new owners adds to Government revenues and benefits a wide variety of service providers, all of which filters down to improved local employment opportunities.'' Meanwhile, Bermuda Home said its profits of $7,459,000 for the year to March 31, was a 38.8 percent improvement over the year before.

The success in the second full year came with a revenue rise of 17 percent to $14,667,000, as operating expenses steadied at $7,208,000, just one percent higher than 1995.

The report to shareholders recognised a $634,000 provision that had to be made for the decline in the market value of the firm's portfolio of stocks of Bermuda's leading publicly listed companies.

The firm's total assets rose nearly five percent, up almost $23.3 million to $494,134,000.

Total mortgages outstanding amounted to $344,676,000 at year's end, a near six percent increase of $18,109,000, while deposits at banks representing Bermuda Home liquidity rose $6,105,000 to $121,835,000, representing a conservative 27 percent of customer deposits.

Risk weighted capital ratio was also conservative at 21.2 percent. Customer deposit liabilities increased by more than $18 million to $441,804,000, as shareholder's equity rose 11.2 percent to $47,254,000.

A total of 328 new mortgages and further charges were closed, totalling more than $54.7 million. That represented a $12-million decrease, which the company attributed in part to management's decision to adopt stricter mortgage lending criteria last August.

The decision came after a period of declining liquidity during which customer deposits remained flat, as mortgage closings continued at a relatively high pace. But by the end of the third quarter, deposit levels had improved and normal criteria were re-established.

Consumer loan delinquencies rose during the year, and $890,000 have been set aside as a reserve for potential loan losses.

Subsidiary, Bermuda Realty Company Ltd. generated $2,168,000, up by 8.15 percent, contributing $519,000 (1994: $116,00) to Bermuda Home after direct expenses for the year. Gross commissions earned from real estate sales were up 5.8 percent.

In recognition of higher earnings levels, the dividend on common shares was increased 10 percent to 44 cents per share per annum. Total dividends were $2,692,208, of which $742,664 went to the 8% Convertible Preferred Shares, while $1,949,544 was paid out to common shareholders.

Bermuda Home indicated that first quarter results to June 30, while still being prepared, were in line with forecasts. There has been a satisfactory rate of new deposits, although mortgage closings are down.

While expecting to continue to report satisfactory results, the company does not expect earnings growth to continue at the accelerated rate as over the past year.

A quarterly dividend of 11 cents per share has been declared for common shareholders of record June 28. A dividend of 20 cents per share has been declared for the 8% Preferred shares to shareholders of record July 17.

The shareholders' annual general meeting is scheduled for Monday.