the 1997-98 financial year, compared to the same period last year.

In results just released, the bank reported a net income of $28.9 million -- up from $22 million during the same period last year.

Total income also increased by 10.2 percent to $112 million -- up from the $101.6 million during the same time period last year.

Bank of Butterfield president Calum Johnston said the continuing rise reflected the strength of the business, including the sound liquidity position, strong balance sheet and customer base.

Changes were made to the business in the last year and now efforts were focusing on increasing the business with the right services, products and prices to benefit customers and shareholders.

"Anyone who has followed us over the past year or so knows that significant changes were made to put performance on the right track,'' said Mr. Johnston.

"We are following up those headline-making changes by focusing our efforts on the necessary task of growing existing business. Our people are working diligently to make sure we have the right service, products, pricing and strategy to benefit customers and shareholders now and in the years ahead.'' The Bermuda Treasury and Bermuda Asset Management businesses, and the Grand Cayman and Guernsey operations all helped boost non-interest income by 20.2 percent to $58.3 million from $48.5 million last year.

In addition net interest income rose slightly from $53.1 million to $53.8 million this year.

The bank also reported that cost management has kept expenses down and savings have been made from the closure of the Singapore office and the end of some UK operations.

Future savings could come from moving support operations to a new venture, ProServe Bermuda, with the Bank of Bermuda.