The Bank of Bermuda is pressing ahead with plans to substantially improve the level of domestic banking service.

The first electronic EasyLink Banking Centre opens soon at the Par-La-Ville location formerly used as a fully-staffed branch.

A Business Banking Centre is to follow at the same location later in the year, to service the needs of business customers. A new 24-hour mini-branch opens this month in the Dockyard.

The bank's corporate banking department has focused more on mutual fund lending in recent months and providing more services to the insurance industry.

The bank's shareholders' letter stated: "Mutual fund lending is a natural complement to the bank's corporate trust business and provides an important value-added service to clients looking for short term liquidity and to enhance returns through leverage.

"Portfolio performance is regularly monitored to ensure compliance with the bank's conservative risk management guidelines.'' Written by chairman Eldon Trimingham and president and CEO, Henry B. Smith, the letter stated: "The decision to focus more closely on the insurance sector is a direct response to the growth of the insurance industry in Bermuda. The influx of new companies in recent years has altered our corporate landscape, creating significant business opportunities in the area of credit, equity and investment management.

"The bank has always provided operational banking services to the insurance industry and has a well established letter of credit portfolio.

"We are now looking to build upon this foundation by offering a wider range of banking and investment services tailored to the industry's evolving financial and operating requirements.'' Changes were made at the Bermuda Trust Co. Ltd. as risk management issues were identified in the international business environment.

A new risk management group established by the bank has been working with a team of advisors from J.P. Morgan & Co. in the design of a risk management process to provide for greater organisational awareness of risk.

The process also clearly defines responsibilities and accountabilities for credit, operating and market risk.

In addition, a comprehensive risk management training programme is being designed to include members of the board, senior management and specialist staff. Training should begin by September.

International operations for the bank are flourishing, with strong growth in business volumes in most offices, directly as a result of the surge in global investment markets.

In the Cayman Islands continuing business development, especially for private and corporate clients, has netted dividends. And because of an expected continuation of growth, the bank has agreed to buy the Georgetown office building they have rented space in for seven years.

The Bank of Bermuda (New York) Ltd., in new offices on Lexington Avenue in Manhattan, should assist the corporate banking division's efforts to expand business with the offshore insurance sector.

All sectors of business in Asia have outperformed expectations, with earnings above budget. Strong equity and property markets, improving Sino-US relations and increasing optimism for post-handover prospects, are beneficial to Hong Kong operations.

Also above budget for the year, the bank's Singapore operation is the principal service provider in a country where there is continued growth in the investment fund business. South Pacific operations are also ahead of budget.

European results are positive, as all operations are well ahead of budget, including Guernsey, Isle of Man and Luxembourg.

BANK OF BERMUDA president Henry Smith.