The Bank of Bermuda has refused to be drawn on rumours it could be sold off by HSBC.

On Saturday The Daily Telegraph reported that HSBC's Bermuda business may be one of several assets put up for sale as the bank focuses more on emerging markets.

But the Bank of Bermuda has declined to comment on the matter.

A Bank of Bermuda spokesperson said: "As a matter of policy, HSBC and Bank of Bermuda do not comment on speculation or rumour."

The Telegraph report went on to say that HSBC is bidding to raise 60 percent of its earnings from emerging markets, with the bank's chairman Stephen Green increasing his targets for growth in that sector in a strategy update delivered to investors on Friday.

But on a visit to the Island in 2005, a year on from when HSBC bought the Bank of Bermuda for $1.3 billion, Mr. Green to The Royal Gazette that the newly-acquired bank had an important part to play in the company's overall strategy.

And in July this year HSBC chose its Island-based investments arm to manage one of the largest international funds in the world.