The Bank of Butterfield plans to boost its investment and capital markets services, according to its annual report.

The report, released last week, also published financial statements first released in August, which showed the bank earned profits of $30.2 million in 1993, a 12 percent increase on a year earlier.

The booklet told shareholders the bank has started to restructure its investment division.

The Bank of Bermuda, which released its results this month, is undergoing a similar restructuring.

This is intended to "lend greater prominence to these functions and to enhance our ability to bring sophisticated portfolio management and corporate finance services to the market'', the report said.

This year, the banks' treasury division was re-named Treasury & Capital Markets Group.

A new subsidiary, Butterfield Asset Management, was incorporated to offer discretionary investment portfolio management services to large investors.

Summarising the Bermuda headquarter's performance during fiscal 1993, the report stated: "Home Office banking operations showed good returns during the year, primarily as a result of a strong performance in Treasury services for Bermuda-based international companies''.

Highlighting successful sectors, the bank pointed to "substantial growth in our Letters of Credit portfolio, primarily in relation to the insurance industry''.

It also said mutual fund administration business produced by the bank's Corporate Services Division had increased during 1993.

The bank has made savings by temporarily relocating certain departments as a result of building work at the bank's head office extension. Property expenses decreased by 6.5 percent or $624,000, because of the Bermuda building project and reduced property costs for Seymour Pierce Butterfield Ltd., the bank's private client stockbroking operation in London.

The bank's overseas operations blossomed in Hong Kong, in particular. The bank's global custody service grew, with assets in custody increasing substantially to $2 billion.