replaced by the first non-Bermudian president in the bank's 104-year history, it was announced yesterday.

Mr. Charles P.T. Vaughan-Johnson, an Englishman, will assume the president's post when Mr. Lines retires on April 3, 1994.

Also retiring next year is executive vice president Mr. William D. Thomson, the bank announced.

Mr. Eldon Trimingham, chairman of the bank's board of directors, said: "These retirements will mark the start of a significant new chapter for the Bank of Bermuda.

"While it is difficult to see these two valued executives move on, we must embrace change and the times that accompany it.'' Mr. Lines, who joined the Bank of Bermuda as a trust officer in 1969, has been general manager since 1979 and president and chief executive officer since 1989.

Mr. Thomson will have served 40 years with the bank, including more than 17 years as an executive officer, upon his retirement on October 1, 1994.

"It is with a great deal of reluctance that the board accepts the resignations of Mr. Lines and Mr. Thomson,'' Mr. Trimingham said at a news conference. "They will be a tough act to follow.

"They've made an extraordinary impact on the bank during their time in office.'' Mr. Lines said he considered "taking the bank international'' his greatest achievement.

In 1969, when he joined the bank, it had assets of about $250 million and 450 employees, all located in Bermuda. Today, bank assets exceed $6 billion and there are 1,624 employees in eight countries. Earnings rose to $28.4 million last year from $1.2 million in 1969.

And for the first six months of this year, profits are up 28 percent over last year, Mr. Lines announced.

"I concluded some time ago that in this role one should not stay more than 10 years,'' he said. "Quite apart from the personal stress, it tends to take away from the ability and drive of the younger people who might follow me.'' Were it not for the recession, Mr. Lines said he would have likely retired at the end of 1991, when he turned 60. Instead, he will have seen the bank through the recession, which he declared is now over.

Mr. Vaughan-Johnson, senior vice-president and general manager of private banking since 1989, was yesterday named executive vice-president international, as well as successor to Mr. Lines.

Mr. Trimingham said Mr. Vaughan-Johnson will be president for five years, when he will turn 65 and it is expected younger Bank executives will be ready to take the helm. "Almost certainly the next president will be a Bermudian,'' he said.

Although Mr. Vaughan-Johnson will be the first non-Bermudian to lead the bank, "the reality is the bank is 90 percent international,'' he said.

The Englishman's appointment should in no way be seen as a transitional one, said Mr. Trimingham. With more than 25 years experience in trust and international banking, the board saw Mr. Vaughan-Johnson as "a superb choice'' to succeed Mr. Lines, he said.

"There are no caretakers in this game these days.'' Mr. Vaughan-Johnson joined the Bank of Bermuda to head up private banking in 1988. Earlier, he was president and chief executive officer of The New World Group from 1985 to 1988 and Aitken Hume International PLC in 1984.

He has also worked for Bank of America International Trust Group, WOBACO International Trust Group, Royal Bank of Canada Trust Corp. and Westminster Bank.

Yesterday's appointment "crowns a career of which I am very proud'', he said.

"I will commit myself to maintaining and building on the foundations built by my predecessor.'' Mr. Vaughan-Johnson will become the bank's chief executive, but Mr. Lines' title of Chief Executive Officer will be relinquished. The bank wants to give more responsibility to individual executive officers.

"If there is a criticism of me, it is that I have tried to do everything,'' Mr. Lines said.

Mr. Charles Vaughan-Johnson.