one of the world's leading financial centres.

It bought Matheson Bank Limited of London, United Kingdom from Matheson and Co Ltd -- a subsidiary of Jardine Matheson Holdings Limited.

Graham Brooks, Executive Vice President, International & Trust, of the Bank of Butterfield Group said: "Matheson Bank has a well deserved reputation for high quality customer service and efficient administration.

"This acquisition is an excellent opportunity for us to expand into the substantial and well regulated United Kingdom market.'' Matheson Bank Limited was established in 1979 and had balance sheet footings of 293 million ($438 million) as at its last financial year end, 31 December 2000.

Its principal activities are deposit taking, secured lending, customer foreign exchange and global custody of securities.

Mr. Brooks said the acquisition is in line with the Bank of Butterfield's strategy of building on its core activities and strengths.

"We are fortunate to have acquired a well established, customer-focussed bank in one of the world's major financial centres. "The capable and loyal personnel of Matheson Bank will be retained, which will ensure continuity of service and maintenance of high standards.'' The Matheson Bank Limited will be renamed Bank of Butterfield (UK) Limited and is a wholly owned subsidiary of The Bank of N.T. Butterfield & Son Limited.

Matheson Bank is regulated by the Financial Services Authority and the Securities and Futures Authority of the United Kingdom.

The Bank of Butterfield Group, established in 1858, also has offices in the Caymans, Guernsey, Hong Kong and the United Kingdom.