dollars in assets in the course of one year, the Bank reported yesterday.

The Bank also reported an 16 percent increase in earnings for the last six months of 1993.

The Island's largest bank and largest company netted $20.5 million for the six months to December, $2.8 million more than in the same period in 1992.

In the year to December, total assets of the bank increased by $1.1 billion to $7.4 billion.

Bank president Mr. Donald Lines attributed the improved performance to strong fee income, growth in overseas operations and international business, and lower loan provisions.

He said the bank had done well to reduce provisions for bad loans during the recession.

"We had $650 million in local loans and at one point, ten percent of them were having difficulties,'' he said. "That situation has definitely improved since June.

"During the six months (to December), net interest income totaled $32.9 million, an increase of $6.6 million or 25 percent over last year,'' he said.

"Fee revenues for the period were $53.6-million, an improvement of 13 percent. Investment income is lower than last year by $5.4 million.

"At the same time, however, unrealised gains increased by $6.6 million.'' Operating expenses also rose by $4.4 million or seven percent as a result of more staff recruited to meet growing business demands in Bermuda and overseas.

The bank's risk adjusted capital ratio, or its measure of strength, stood at 13.8 percent, better than the worldwide standard of eight percent and the local standard of ten percent.

In his six month report to shareholders, Mr. Lines listed the key achievements for that period as: The take-over completed in November of the Standard Chartered Equitor business in Hong Kong and Singapore, which made the bank the major supplier of institutional trust services to the mutual fund business in the Far East; The launch of the bank's Investment Division's new products, including the Bermuda International Money Fund and Bermuda Investors Limited, a new vehicle used for the investment in a number of Bermuda-based insurance companies; and Near completion of the bank's new administration building on Bermudiana Road in Hamilton, with work starting on the interior fittings. The project remains on budget and scheduled for opening in autumn 1994.

BANK OF BERMUDA SIX MONTH RESULTS (Millions of dollars) Net income 20.53 Revenues 87.22 Expenses 66.68 Assets 7,379.5 Liabilities 7,048 Mr. Donald Lines.