history.

It has bought the Hong Kong and Singapore institutional trust business of Standard Chartered Equitor Group (SCEG).

In doing so, the bank has strengthened its position as the largest corporate trustee in Asia.

Under the terms of the deal, the bank will administer an extra $3 billion worth of institutional assets in the world's fastest growing economy.

It will leave the bank with a total of $7 billion under administration in the Far East.

The bank's president, Mr. Donald Lines, said: "This is perhaps the most exciting thing that's happened in the local banking world in the 25 years I have been here.

"To be a market leader in a market as important as that is an immense achievement for the Bank.'' As part of the agreement, the bank will take on 130 SCEG staff -- doubling its previous total workforce in the region.

The acquisition raises the total funds under the bank's administration from $25 billion, including $16 billion for 356 funds administered on behalf of 91 different investment management groups, to over $28 billion.

Despite the enormity of the purchase, Mr. Lines said the bank had not stretched itself financially.

"The deal is very attractive from our point of view but it's not an onerous acquisition,'' he said. "We can manage it quite easily.

"By Bermuda standards, this is an enormous deal. It furthers the growth of the bank and supports its commitment to go out into the world and compete.'' In the past, the bank has preferred to expand its business through internal development rather than acquisitions, he said.

But Mr. Lines said the chance to buy a book of business this size was too good to miss.

He added: "The step is important in the growth of the Bank of Bermuda's international business, which has been built on a commitment to high standards of service and the excellent reputation that we have achieved in the specialised markets we serve.

"The continuing development of the bank's international business accounts for a substantial proportion of the bank's profits and provides valuable jobs and career opportunities for management and staff in Bermuda and in our other offices throughout the world.

"We believe this is a significant achievement because expansion in the Far East is an important part of our strategic initiative as we see our future in the continuing growth in the Asian markets.'' Several of the bank's senior executives, including Mr. Charles Vaughan-Johnson, who takes over from Mr. Lines next year, and officers from Hong Kong, Guernsey, Luxembourg and Bermuda have been involved in the deal.

Mr. Vaughan-Johnson said the acquisition positioned the bank to expand its institutional business in the Malaysian Peninsula, Indonesia, Thailand and other south-east Asian countries.

He added: "Mr. John Hawkins (senior vice president, Far East) has been instrumental in developing this opportunity for the bank.

"He is directing a team of specialists from Bermuda, Guernsey, Luxembourg and Hong Kong who are planning the customer relations, personnel, systems and other aspects of the acquisition.''