The Bank of Bermuda celebrated surpassing the $100 million mark in profit for the first time ever this year. But just how it was able to achieve this feat has just been laid out for shareholders with the release of the Bank's annual report.

A major contributing factor was the growth of trust services in the Far East.

This area boosted the Bank's non-interest revenue which was one of the two most significant sources of income gain during the year.

Non-interest revenue rose $36.9 million to reach $234.7 million in 2000. Net interest income was the other major contributor and it rose $38.3 million to $182.2 million.

Non-interest income is derived largely from fees the Bank charges for trust and related services. These fees totaled $129.4 million this year, an increase of $17.6 million.

According to the Bank this was achieved "on the strength of healthy financial markets around the world, with new business also providing a sizable lift''.

But business deals in the Far East accounted for 57 percent of the growth in trust and related service fees. According to the annual report business was good in the Far East because of "a sustained recovery in financial markets boosted transaction volumes and asset values, driving a 21 percent increase in fees.'' The fees charged for services in the trust area are based on the market value of the assets being administered and the volume of transactions.

The most common clients of the Bank for trust services are investment plans and wealthy individuals and families.

Services include custody, corporate secretarial, registrar and transfer agency, administration, provision of private trusts and financial and estate planning.

And further growth is expected in this area in this region as the Bank has been appointed to administer "a sizable portion of the new pension business in Hong Kong''.

This new business will be generated as a result of new legislation in Hong Kong which comes into effect this December.

Subsidiaries of the Bank in North America and Europe reported less impressive growth rates of 15 and 6 percent respectively.

Bank profits The Bank said results in Europe were impacted by the loss of a significant Global Fund Services client. It also held that new business growth in the region was "robust'' as it "benefited from rising interest in the non-traditional investment products of hedge funds and fund of funds in which we specialise''.

The Bank has also poised itself to take advantage of developments it sees happening in Ireland and Luxembourg by fund management groups who are "looking to provide tailored products in regulated markets''.

The Dublin office is reaping the benefits of this new trend and the Bank reports the new business realised there has caused a 77 percent increase in trust and related service fee revenue for that office.