Mr. Vaughan-Johnson, who succeeded Mr. Donald Lines on April 7, also revealed in his quarterly report to shareholders that the bank will shortly announce a revised executive and management team.

While final results for the whole third quarter are not yet available, Mr.

Vaughan-Johnson said strong January and February earnings indicate profits will be ahead of budget and ten percent over last year's.

He added that the bank's offices in Hong Kong and Singapore were contributing well to the bank's overall earnings.

He said the new management team would "be structured to encourage a co-operative approach to realising opportunities and solving problems''.

"That same team approach will be fostered throughout all areas of the bank's operations,'' he said.

Mr. Vaughan-Johnson also formally announced the appointment of Mr. Henry Smith as senior vice president (Europe) and managing director of the bank's British-based companies as of July 1.