for fiscal 1992 -- an increase of 27.6 percent over the previous year.

More than a quarter of the increase was due to the recovery of interest and fee income from the winding up of Hampton Court Properties, which owned the now defunct Golden Hind Restaurant.

The rest was due to strong performances by the treasury and trust operations and overseas operations.

But there was "very little'' growth in the bank's domestic operations which reflected "the worst recession the local economy has experienced for many years''.

Mr. Stephen Kempe, the bank's general manager/international, said: "We are extremely pleased with the results.

"But we are also concerned about the bank's domestic operations for the winter and next year because of the recession.'' The bank's overseas operations, which accounted for more than 20 percent of income, would continue to grow stronger as they were expanded, he said.

Mr. Kempe added: "The outstanding performance of the bank was made possible by the superb team effort by each and every staff member of the Butterfield group.'' Earnings per share for the 12 months to June 30, 1992, were $3.29 compared with $2.60 for fiscal 1991.

The return on assets went up from 0.68 percent to 0.86 percent and the return on shareholders' equity increased from 12.8 percent to 14.8 percent.

Total assets at the end of the year stood at $3.41 billion, up 13.3 percent over 1991. Liabilities increased from $2.8 billion to $3.2 billion.

The bank's total income was up 16.2 percent ($13.7 million) to $98.4 million while its expenses rose by 12.4 percent ($7.9 million) to $71.5 million.

Net interest income, up 14 percent at $45 million, accounted for just under half the total revenue. Non interest income went up by 18.1 percent from $45.2 million to $53.4 million.

Fees, commissions and service charges were up by 11.5 percent to $23 million.

Management, brokerage, foreign exchange and corporate services fees rose by 16 percent to $16.6 million. Trust and executor ship fees increased by 24 percent to $9 million.

On the expenses side, salaries were up by 13 percent -- well above the rate of inflation -- to $36.9 million. Pension and other staff benefits rose by 13.7 percent to $5.7 million.

The bank said operating expenses had been contained well over the 12 months, despite continued overseas expansion, such as the opening last November of the new London branch.

Bank of Butterfield 1992 results Profit $26.9M Income $98.4M Expenses $71.5M Assets $3.4B Liaabilities $3.2B Earnings per share $3.29.