its 1999/2000 fiscal year, with net income of $21.6 million, up 30 percent on the comparable period last year. Return on shareholders' equity for the quarter ran at 17.3 percent.

Profits are ahead in almost all the main areas of the bank's activity. Total fee revenue increased by 17 percent, or $7.9 million, to $55.2 million. Within that figure, corporate trust fees worldwide increased by 1.9 percent to $24.4 million for the quarter; private trust fees improved by 20 percent on the quarter to reach $7.1 million; investment service fees were ahead 19 percent to $8.2 million; foreign exchange earnings grew six percent to $9.1 million; and banking service fees improved 17 percent to $6.2 million.

Net interest income for the quarter increased by 11 percent, to $37.4 million, a significant part of which was attributed by Bank chairman Eldon Trimingham and president Henry Smith to the results of new subsidiary, Bermuda Home.

Operating expenses grew by nine percent, to reach $71.1 million for the first quarter of 1999/2000.

In a quarterly report to the shareholders, Messrs. Trimingham and Smith declare themselves "delighted to report an excellent start of the new financial year''.

Ongoing recovery in fee revenues, the two men say, "particularly in the Far East, together with continued strength in interest earnings, has driven this impressive result.'' The bank continues to await the introduction of the new Banks and Deposit Companies Act 1999, due to become law early in the New Year, to further the progress of the formal application it made in September to the Ministry of Finance to be exempted from the Island's 60/40 shareholding regulations.

The September 30, 1999 balance sheet shows total assets at $9.874 billion, ahead $320 million.