The Bermuda Commercial Bank has released another strong set of annual results with net income increasing by nearly 50 percent for the financial year ending September 30.

Bank chairman John Deuss reported an increase in net income of 48 percent from $2.93 million to $4.32 million.

The Board of Directors approved an increased dividend of 20 cents per share for the second half of the year, taking the dividend for the full year to $0.35 -- an increase of 75 percent on last year.

"The strong performance by Bermuda Commercial Bank is a consequence of our policies, pursued consistently since 1993, of ensuring a clean and liquid balance sheet, minimising risk and adopting the best of modern technology to enhance customer service,'' Mr. Deuss said.

Managing Director Peter Roberts added that, while total income had grown sharply, total non-interest expenses had remained unchanged over the year.

"We have seen our cost to income ratio fall consistently as planned over the year,'' Mr. Roberts said.

"By year end this key measure of efficiency stood at a creditable 64.1 percent while we still remain comfortably capitalised.'' Other key performance parameters reported include a Return on Equity of 13.87 percent, up from 10.20 percent on the previous year, and a Return on Assets of 0.8 percent, up from 0.57 percent.

Assets under administration, custody and trust grew 19 percent from $4.7 billion to $5.6 billion.

The bank has recently formed a strategic alliance with State Street Bank and Trust for provision of global sub-custodian services. A collaboration agreement was also signed with Merrill Lynch Asset Management L.P. for provision of asset management products and services. These alliances are now fully operational and are proving popular.

Since First Curacao took over responsibility for the bank's management five years ago its performance has been impressive. Net income has risen more than fourfold, annual dividends are three and a half times more than in 1993/94 and the key efficiency ratio of cost to income has improved by more than 20 percent.

The bank will be holding its Annual General Meeting in the Adam Lounge of the Hamilton Princess Hotel on December 9.