Half-year income at Bermuda Commercial Bank Limited jumped 91 percent to $4.25 million at March 31, 2006 compared to $2.23 million in the year ago period due mostly to the continued strength of BCB's deposit taking business.

Broken down, earnings per share increased to 85 cents compared to 45 cents per share one year ago.

Strict cost discipline across all departments resulted in the bank's efficiency ratio improving to 51.7 percent, from 68 percent at March 31, 2005.

Interest income increased by 51 percent to $5.68 million from $3.76 million at March 31, 2005.

US interest rate increases which commenced in mid-2004 and continued into 2006 with four additional rate increases during the six month period resulted in an average base interest rate for the period of 4.20 percent compared to 2.19 percent for the corresponding 2005 period. The continued fiscal tightening by the Federal Reserve Board has contributed to BCB's strong growth as the bank's balance sheet is largely denominated in US dollars, the bank said in its earnings release.

Performance ratios improved as a result of strong income growth. Return on equity was eight percent for the six month period compared to 45 percent for the prior year's first six months while return on assets increased to 0.59 percent from 0.37 percent.

The bank continued to maintain its commitment to a liquid, virtually risk free, balance sheet with cash and cash equivalents making up over 99 percent of total assets. That policy along with the bank's history of profitability contributed to BCB generating a substantial capital base and industry-leading capital ratios.

As the implementation of the new Basel II framework on capital adequacy moves forward, the Bank remains comfortably within all international capital regulatory guidelines.

The board of directors increased the half-yearly dividend to 30 cents per share. Based on the Bermuda Stock Exchange bid price of $8.25 for the bank's common stock at March 31, 2006, the semi-annual dividend generates an annualised yield of 7.3 percent for shareholders.