The Bank of Bermuda and the Bank of Butterfield have both continued their share buyback programmes and have advised the Bermuda Stock Exchange of share buybacks in November.

Last month the Bank of Bermuda bought back a total of 176,900 of its common shares at an average price of

$31.96 per share on the Nasdaq Exchange.

Meanwhile the Bank of Butterfield or its subsidiaries bought back and cancelled a total of 87,600 of its own shares

at an average price of $30.87.

The Bank of Bermuda is on record as saying that the principal purpose of the shareback programme is to establish a mechanism to balance new issuance obligations under the Bank's various benefit programmes, such as option plans

"This capital management tool is common amongst international banks and other multinational institutions.

"Investors tend to appreciate the Bank's repurchase of stock because it lowers the number of shares outstanding, especially in light of incentive plans which can be dilutive." said a bank spokesperson in 1999.

Bermuda law and the Bank of Bermuda Act prevents the Bank from holding their own common shares and therefore, any shares the bank purchases are automatically cancelled, and the amount of issued capital is reduced accordingly.