according to a press release from the company.

The release announced a dividend increase of 28 percent to 16 cents a quarter beginning in the first quarter 1997-98.

"During the past four months the executive management team has started implementing a strategic plan to position the bank for improved profitability,'' bank president and chief executive officer John Tugwell stated. "Similarly, by increasing the dividend, we're making sure that shareholders are positioned to enjoy an appropriate reward for having entrusted us with their capital and good faith.'' The bank's share price has risen from the end of financial year 1996-97 to $13.88 yesterday from $9.75 in May.

"I hope shareholders will recognise that the increase reflects our board of directors' confidence in our strategic plan which, in my view, has been the chief contributor to our share price's rise,'' he stated.

When Mr. Tugwell took up the position of chief executive officer earlier this year he closed the bank's Singapore office and downsized its UK operation. He also increased loan loss reserves to $21.1 million at year-end 1997, from $15.7 the previous year.

"Doing so provided for certain non-performing assets in discontinued and continuing operations, while improving the quality of future earnings streams,'' the press release stated. "Efforts are also underway to flatten the bank's organisational structure with an eye toward increased efficiency and a reduced cost base. These decisions have addressed the main reasons for the bank's lacklustre earnings.''