the year to June 30, a 12 percent improvement over the year before. Earnings per share climbed 21 cents to $2.38.

Total assets for the first time broke through the $8 billion mark ($8.1 billion), a near $700-million growth. And total revenues for the first time exceeded a quarter of a billion dollars.

The bank, which declared a $19.8-million result for the first six months (down six percent from the same period the previous year), finished up by netting profit of $27.6 million during the second half of the year.

"These results are very pleasing given the challenges the bank has faced and the need to provide for additional expense related to the decision to reorganise our New York and Jersey offices,'' said bank president and CEO, Charles Vaughan-Johnson.

"In addition to record earnings, the bank's balance sheet reflected total assets of over $8 billion for the first time. Customer deposits increased by $650 million, or almost ten percent, despite the fact that record amounts of money have entered world stock markets.'' Mr. Vaughan-Johnson said that most of the $650 million in increased deposits were US dollar deposits from out of the mutual fund market, and some from the local international business market.

Highlights of the fiscal year 1996 include total revenues of almost $255 million, about 50 percent of which was from overseas offices. Fee-based earnings contributed 60 percent of total revenues and were up 17 percent for the year. The bank president said fee income of $164 million pulled up sharply in the second half, and finished $26.5 million higher for the year.

Total capital funds were nearly $409 million, improved from more than $377 million a year ago.

The reorganisation of New York and Jersey offices combined cost the bank $2.7 million.

The bank's New York subsidiary, Bank of Bermuda (New York) Ltd., undertook a new direction during the year, becoming more focused on the marketing and sale of services, particularly to investment managers and insurance companies in the US, while continuing to provide banking services in New York to non-US clients.

Significant changes included the reduction of employees from 44 to 20, including marketing and support staff.

In Jersey, there were increased expenses associated with the bank's takeover of Standard Chartered Equitor's international trust business.

Mr. Vaughan-Johnson said: "We were reorganising and we moved them into new premises. And with rationalisation, we've been able to reduce the numbers there, as well. These were costs relating to the acquisition.'' He also noted that there is a large surplus of deposits over money lent by the banking system.

Mr. Vaughan-Johnson said of the annual results: "It's encouraging. People obviously still have great faith in the strength of the Bermudian banking system and the Bank of Bermuda in particular.'' Charles Vaughan-Johnson Bank's record results The Bank of Bermuda has reported record net income for each year since 1992.

(All figures in millions) Year Net income Assets 1991 $27.47 $5,831 1992 $28.44 $6,290 1993 $35.86 $6.845 1994 $41.08 $7,245 1995 $42.22 $7,390 1996 $47.40 $8,082