in the quarterly dividend, from 22 cents a share to 24 cents a share, moving the annual dividend rate up to 96 cents.

The next dividend is payable October 15 to shareholders of record September 30.

Senior vice president and chief financial officer, Edward H. Gomez, said that the "action by the board of directors recognises the bank's continuing strong financial performance and expresses confidence about our outlook for the future.

"This dividend increase, which matches that of last year, is consistent with our desire to have our shareholders participate in the bank's success.'' The 22 cent per share quarterly pay out surpassed the near 21 cents per share being paid until 1993, when the dividend was lowered to 20 cents, the same year of a stock split.

The dividend remained at that level for three years, until March 1996, when it was improved to 22 cents a share, and now is being improved to 24 cents.

Jeffrey Conyers, president of First Bermuda Securities Ltd., said the dividend improvement was a positive move.

He added: "I think Henry Smith (CEO) is doing a great job at the bank. There seems to be a bit of a revaluation there, more in line with the type of company it is and the type of valuation it would receive in the US.

"It is not perfect yet, but it is getting closer.

"The Bank of Butterfield has a long ways to go. They are just starting a whole new restructuring and they have a few hiccups. But I think that they will pull themselves into shape.

"As for the Bank of Bermuda, the best thing any institution can do is increase the share price for their shareholders and the overall return.

"I'm not fussed so much with the dividend increase. It is nice they've increased it, but I think the most important thing they can do is use the shareholders' equity wisely and increase the net worth of the company.

"You want to grow the shareholders' equity, but also the share price. I think Henry Smith is doing the right things and sending positive messages, especially as regards to the point that we are not going to be boxed in by Bermuda issues.

"The view seems to be that the bank is out there on the world stage, so it should be valued on a world basis.

"I think Mr. Tugwell was doing the same thing at Bank of Butterfield and hopefully his replacement will think along the same lines.'' In a shock development last week, it was announced Bank of Butterfield president and CEO John Tugwell was quitting his post after just four months.