16 percent to $2.8 million for the past six months.

The bank released its figures yesterday for the first half of 199 9/2000 fiscal year ended March 31,2000.

According to the bank, the rise in net income came as a result of a 5.97 percent increase in revenues and an actual decline of 0.25 percent in the bank's total expenses.

The bank said the combined effect of asset growth and a wider net interest spread produced a 19.66 percent increase in net interest income.

Earnings per share rose from 57 cents to 66 cents for the six month period from 1998/1999 to 199 9/2000 -- which was an increase of 15.79 percent.

According to a statement from the bank, the bank's chairman, John Deuss "expressed satisfaction'' with banks annualised return on equity of 15.76 percent.

The same statement said that acting managing director Barry Munholland said that the bank's focus on cost control had "reasserted its influence on the efficiency ratio'' which moved below 60 percent for the first time -- total expenses were 57.49 percent of the revenues.

The statement from the bank said: "The decline in expenses is attributable to the continuous improvement in the systems for straight through processing.

"This allows the banks to handle larger volume of transactions without adding material costs.

"Ongoing improvement in this key ratio remains one of the bank's central targets.'' According to the release, the risk profile of the bank remains very conservative.

The mortgage portfolio remains in runoff as the bank works to reduce its exposure to real estate and as a result of this, loans as a percent of customer deposits fell to 2.59 percent.

The bank's board of directors also announced that a dividend of 20 cents per share was to be paid to shareholders.

The bank release added: "The current share price of $5.00 per share appears low given the excellent performance of the bank.'' At this level the annualised dividend yield is 8 percent.

The bank's shares closed unchanged yesterday at $5.00 with only some 500 stocks changing hands on the Bermuda Stock Exchange.

`Satisfied': Bermuda Commercial bank chairman John Deuss