The Bank of Bermuda yesterday announced a 2.4 for one stock split in an effort to make its shares less expensive and, according to president Mr. Donald Lines, "more accessible to a larger group of Bermudian buyers''.

It will reduce the par value of the Bank's common stock from $2.40 per share to $1, effective from the close of business on June 18.

Mr. Lines also revealed the Bank's earnings for the first ten months of fiscal 1993, to the end of April, are already ten percent higher than earnings for the entire previous year.

"This is a direct result of continuing growth in our international businesses and the success of our cost and expense control initiatives,'' he said in making the stock split announcement .

Also yesterday, the Bank's Board of Directors declared a ten percent stock dividend to be paid on July 15, 1993, to common shareholders of record as of the close of business on June 30.

Mr. Lines said: "As a customer-driven and service-focused international bank, the stock dividend and share split reinforces our commitment to good relations with the community and demonstrates continued growth and prudent management.'' He added: "In recognition of the share split, we are simultaneously adjusting the cash dividend rate on the common shares to 20 cents per quarter or 80 cents per annum, effective from June 30, 1993.'' The Board has agreed to give preferred shareholders notice that their shares will be called for redemption on June 25, 1993.

Shareholders would be well advised to consider converting their holdings into common shares on or before June 25, following receipt of the regular quarterly dividend which is payable on May 31, said Mr. Lines. This will allow them to receive the value of appreciation in their holdings on conversion to common shares and the benefit of the stock dividend and quarterly cash dividend.

The current $2.40 par value of the Bank's common shares is a remnant of its capital being quoted in UK sterling and then restated in Bermuda dollars in the early 1970s.

A Special General Meeting has been called for June 18 to approve the sub-division of the common shares from a par value of $2.40 to $1, assuming the Board approves the share split at a meeting on June 1.

Mr. Lines said: "The share split, combined with the ten percent stock dividend, will have the effect of raising cash dividends receivable by common shareholders by 5.6 percent per annum.

"Preferred shareholders will also enjoy the benefits of the appreciation in the value of their holdings and the stock dividend if conversion is made on or before June 25.'' Mr. Donald Lines.