Philip Butterfield is set to take on the Bank of Bermuda?s top post just four years after joining the organisation.

A Bermudian, Mr. Butterfield, 57, was posted to his current position as chief operating officer in 2001 but joined the bank the year before that as chief administration officer.

His posting to the Island?s largest bank followed a 28-year career in the US, most recently as chief of staff for Citibank Private Bank.

Mr. Butterfield told The Royal Gazette in a recent interview that he was ?thrilled? about the bank?s proposed takeover by HSBC ? the world?s second largest bank ? and also eager and ready for the challenges of integration with a much larger banking superpower.

The proposed sale to HSBC was announced late last month and if approved by shareholders and regulators, is expected to close in the first quarter of 2004.

Mr. Butterfield was recommended to succeed current CEO Henry Smith, in an announcement made by the bank?s board yesterday.

Mr. Smith, 54, is a 30-year veteran of the bank who rose through the ranks from teller to CEO. He said earlier this month that he would step down from his senior post at the bank within a year of the sale to HSBC.

Although critics of the deal have questioned whether there will be any challenge left for senior management after the bank is bought out ? the dynamics of the bank?s business are set to change with its global operations ceasing to be a real part of the bank, but absorbed into HSBC operations ? Mr. Butterfield said he did not see it that way.

?To be straightforward, there is so much to be done in terms of the ways that we can better serve the local community,? he said, and one real area for growth would be business from international companies based here.

?Looking at the international insurance and reinsurance sector, this is an industry that has well over $100 billion in assets yet less than four percent of those assets are domiciled in Bermuda banks, with us and the other (banks on the Island).

?The reason that the treasurers and CFOs of those companies choose to have a cap on the extent to which they will use local banks as depositories is because of our capital position. It is a prudent choice.?

Mr. Butterfield said HSBC?s acquisition of the bank would change its capital profile: ?Now being a part of the second largest financial services organisation in the world, that consideration will no longer apply.

?There is only upside potential.

?We will be able to offer advice on initial public offerings, offer the more sophisticated capital market products, be able to give them mergers & acquisitions (M&A) advice.

?These are all services that the Bank of Bermuda is not today able to do, but as a member of the HSBC family we will be able to.?