That, says outgoing Bermuda Commercial Bank managing director Mr. Richard Francis, is the reason for the meteoric rise in the value of his bank's shares over the last 10 days. (See chart above).

The shares -- which traded at $6 n March 12 and at $6.91 on May 10 when Bermuda-based millionaire Mr. John Deuss bought his 32 percent stake for about $3 million, closed at $14 yesterday.

Since last Tuesday, the shares have gained four dollars, an increase which has left observers puzzled as the bank has not revealed any dramatic news recently while impressive results at the Bank of Butterfield and the Bank of Bermuda (announced yesterday) have so far failed to move the market much.

Mr. Francis said the increase in Commercial Bank shares reflects faith in Mr.

Deuss and the new management team he is putting in place, and confidence that the restructuring at the bank, which saw it drop most of its retail operations to focus on international business and high worth private customers, is working.

"I think that the bank has been seen as one of the local companies in Bermuda which in recent years have been said to be under-performing,'' he said.

"There is now an expectation that our performance will improve given our new strategic management and investors are anticipating that improvement.

"I think people are seeing the price going up and are engaging in classic profit taking with some of the longer-term investors are cashing in on their investment.

"Overall, I think this shows confidence in the bank. Everyone believes there is a good opportunity for a third bank which is very focused and which has strengthened an already strong management team.''