for almost ten years, will head the bank's European operations from July 1.

Mr. Smith takes over from Mr. Barry L. Shailer, who returns to Bermuda to work in corporate and retail banking.

His precise role is yet to be defined as president and chief executive officer-in-waiting Mr. Charles Vaughan-Johnson is finalising transition plans.

For Mr. Smith, the move to London, the hub of the bank's European operation, provides the opportunity to learn new banking skills, and equip him to move through the banking hierarchy in Bermuda on his return in two or three years time.

Retail banking will fall under the stewardship of Mr. Alan Richardson, senior manager of retail banking, and the credit division will be run by Mr. Bruce Pottle, manager of retail lending.

"I am proud of what my staff have accomplished in retail banking in the last five to six years. The division was considered the poor cousin, and a loss maker, but now it is breaking even and providing better service,'' he said.

In recent weeks, Mr. Smith has been entrenched in plans for Bermuda Home, the new independent financial institution announced on Monday.

And the severing of the bank's business into the new company will occupy much time before he leaves for London.

As senior vice president Europe, he will be based in London, but will be responsible for the European subsidiaries: Guernsey, the Isle of Man, and Luxembourg.

The London office provides representation to the London market, and computer support to the subsidiary offices. In common with the bank's main global business bias, corporate trust business, institutional fund management and global custody is the backbone of the bank's European business.

The Guernsey office, incorporated in 1973, has a wider spread of business than the other offices, providing personal trust, private banking, as well as corporate banking services.

"It will be a personal challenge to add other business to existing services.

There will be more focus on the high net worth individual. We should be able to build on the private banking side, and the way in which we service corporate entities,'' he said.

"I am picking up a vibrant piece of business at the end of a recession.'' Mr. Smith will apply his knowledge of the retailing banking sector by attempting to sell the bank's card services to customer of its European subsidiaries.

The transfer to London will be a learning experience for Mr. Smith, who has worked in local banking for the past nine years.

"It is a new career, a significant change,'' he said. "I will be learning the corporate trust business, and meeting the clients at the outset.

"If I come back with successful European experience then I would imagine that I will be well placed for advancement,'' he said.

The Bank of Bermuda's London office is currently located at Broadgate, near Liverpool Street Station, but the bank is investigating new West End locations.

Mr. Smith's wife, Judiann, who runs the auctioneering division of Somers Realty, will forego her career for the duration of her husband's London sojourn. She plans to take antiques and flower arranging courses in London.

"It is a sacrifice for her to leave behind a successful business,'' said Mr.

Smith.

OFF TO LONDON -- Mr. Henry Smith will head the Bank of Bermuda's European operations.