will declare net income for the year to March 31 at $9,057,615, a near 21 percent improvement over the year before.

President Arthur Haycock said yesterday the firm had a very good year.

Property sales were marginally higher than last year. But he said the increased revenues were in part as a result of an increase in interest income, as opposed to fee income.

He said, "Net interest income is basically the difference between our interest income from mortgages and loans, and, our deposits with banks.

Subtract from that the interest we pay our customer depositors. The difference is the interest income.

"Most of the growth has really come from our lending side, from interest on loans and mortgages.

"We get a higher rate of course on a mortgage than we do from say our liquidity, which is on deposit with the bank. The rates are much better from that point of view. So as our lending book grows, we increase our income.

"But yes, the bulk of the increased earnings is as a result of the increased mortgage lending and increased consumer loan lending.'' The company also employed an accounting adjustment, re-valuing its investment portfolio, bringing more than $600,000 back into income as a one time adjustment.

While seeking to increase the customer deposit base, Bermuda Home has acknowledged that competition in lending is strong.

Mr. Haycock said, "There is more competition now for the investment dollar.

It is not only just more competitive with other deposit companies, but there are more, and more types of, investment opportunities for Bermudians.'' Total revenues rose nearly 14 percent to $17,364,165 as total operating expenses rose 7.5 percent to $8,306,550. Earnings per share rose from $1.45 in the prior fiscal year to $1.79 last year.

The company declared a 20 cent per share dividend on the 8% Non-Cumulative Convertible Preferred shares payable July 29 to shareholders of record July 15. And a quarterly dividend of 12 cents per common share for the quarter ending June 30 is being paid on July 15 to shareholders of record June 30.

Common share dividends are 56 cents per share, totaling $2,597,414, compared to 44 cents per share the year before. Preferred share dividends were 80 cents per share, totalling $730,999.