cents -- the first increase since 1987.

Mr. Michael Collier, the bank's general manager, said yesterday that the bank was doing well and wanted to reward its shareholders.

"We're very pleased with the performance year over year and we feel the shareholders are entitled to a better return,'' he said.

"The board of directors thought it was prudent to increase the dividend by five cents since the bank is being run well and is in good shape.'' One investor who must be ruing the news was the person who last week decided to sell some 400 shares on the Bermuda Exchange for the bargain price of $14 in what was widely regarded as being a "panic'' sale from someone urgently needing the cash.

On this week's Exchange, share prices in the bank soared to $15.25 on news of the dividend increase.