reported that it earned record profits for the fourth consecutive year.

For the year ending June 30, 1995 profits increased by $1.1 million, or just under three percent, to $42.2 million.

"These results were achieved through the ongoing expansion of the group's core international businesses in the face of challenging market conditions for the banking industry world-wide,'' said Bank of Bermuda president and CEO Mr.

Charles Vaughan-Johnson.

"Despite these challenges and the costs associated with the absorption of the private trust operations acquired from the Standard Charter Equitor Group, fiscal 1995 was clearly a year of consolidation and continued growth for the Bank of Bermuda,'' he said.

Operating expenses, driven by acquired business and investment in human resources, rose to $187.3 million from $148.7 million, an increase of 25.9 percent.

Salaries and related costs, part of total operating expenses, jumped 28 percent to $107.9 million compared to $84.3 million a year earlier.

Revenue jumped 20.1 percent to $229.5 million compared to $189.8 million a year earlier.

Total assets increased by $145 million to $7.4 billion.

"While assets saw strong growth in the first six months, they fell back in the latter part of the year as depositors returned to the bond and equity markets,'' the bank said.

Net income from overseas operations contributed over half the bank's total profit, the bank said.

Total capital funds rose $45.3 million or 13.6 percent to $377.2 million reflecting "not only a good profit year but also the successful September rights issue.'' The bank also reported; Net income per share dropped to $2.17 from $2.21 a year earlier.

Fee revenues rose 14.6 percent to $137.5 million as a result of growth in core businesses and the addition of four new locations.

Net interest income for the year was $92.1 million, up 31.9 percent from the $69.8 million reported a year earlier.

The bank also cited newly acquired South Pacific and Jersey offices contributed favourably to the overall results.

The bank's annual general meeting is slated September 20 a 4 p.m. at the bank's Front Street head office.

The bank's annual report is slated to be published in September.

"We are pleased that we have been able to increase both revenue and earnings to continue with our programme of development, talent building by training and recruitment, and systems improvement,'' Mr. Vaughan-Johnson added.

In 1994, the bank reported profits rose 14.6 percent over 1993 results while 1993 results were up 26.1 percent over 1992.

Mr. Charles Vaughan-Johnson