windfall after the Bank announced record results on Monday.

Nearly 80 percent of shareholders in the bank are Bermudians and include local schools, pension funds, churches, charities, societies and the Police Service and will get 60 cents for each share.

Shareholders will also get an extra share for every seven they currently hold which will add up to an extra 14 percent return on investment if the regualar quarterly dividend stays at the same rate.

A spokesperson for the bank said that the special dividend was made by the bank as an added benefit to stockholders. Currently there are 24 million Bank of Bermuda shares in issue, with approximately 6,000 stockholders. A total of $21 million will be paid out in this extra cash dividend, which will be paid on top of the normal quarterly dividend of 27 cents a share.

The payout will be set up for those owning bank shares on August 18, and payment to shareholders received at the end of the month.

Yesterday The Royal Gazette revealed that the bank's profits had jumped by 44 percent to $106.1 million -- a record figure for the bank.

Shareholders to receive windfall Edward Gomez, chief financial officer said: "We are pleased that these excellent results enable us to announce special Year 2000 dividend actions.

"The board of directors had declared a one-for-seven stock dividend, together with an incremental cash dividend of 60 cents per share, which is in addition to the regular quarterly dividend of 27 cents per share, to shareholders of record on August 18, 2000.

"These actions demonstrate the board's continued commitment to shareholder return as we work towards achieving a more liquid market for our shares.''