bank in a recent survey conducted by the industry's leading magazine, The Banker .

The annual survey of the world's largest 1,000 banks revealed that increased assets caused both the Bank of Bermuda and the Bank of Butterfield to move up the international bank ranking.

The Bank of Bermuda climbed to 664th position from last year's listing as the 684th largest bank in the world with assets of $5.83 billion at June 30, 1992.

The Bank of Butterfield crept up the rankings to 795th position. In 1992, it was placed 813th with assets of $3 billion.

Although the Bank of Bermuda dwarfs the Bank of Butterfield in terms of asset size, the Bank of Butterfield is dominant in all the other comparative categories.

All banks in the survey are compared in terms of soundness, real profit growth, performance and return on assets.

Despite the Bank of Butterfield having just over half the assets of its local rival, the two bank's profits during fiscal 1992 are strikingly similar.

On assets of $3.4 billion, Butterfield made a profit of $27 million, while the Bank of Bermuda, with assets of $6.29 billion, made a $28 million profit.

Bank of Bermuda executive vice-president/international Mr. Charles Vaughan-Johnson said: "It is true that the Bank of Butterfield shows a higher return on its assets.

"If you consider the total assets of the two banks, they are a long way apart.

"Butterfield has taken a different emphasis on the way they deploy their assets. It has a stronger emphasis on investment income.

"Although the two banks generate a high proportion of their revenue from fee income, the Bank of Bermuda has traditionally emphasised fee income and been particularly active in the trust fund and mutual fund areas.

"Fee earning business often relates to assets that do not appear on the balance sheet.'' The Banker , which is published by FT Magazines in the UK, released its survey in the July edition.

Whereas last year's survey showed Butterfield's assets declining by 2.9 percent during fiscal 1991, assets swelled by 13.3 percent during the financial year ending June 30, 1992. However, the bank's assets dropped by 1.8 percent to $3.347 billion during fiscal 1993.

The Bank of Butterfield's pre-tax profits increased by 27.6 percent to $27 million in fiscal 1992.

Since the survey was compiled, the Bank's profits have risen a further 12 percent to $30.15 million, as revealed in last week's 1993 results.

Mr. Michael Collier, Bank of Butterfield president and CEO, said: "We have managed our assets very well. I am pleased we have improved our position in the bank ranking.

"Our investment income has done very well and produced a good return. We did position ourselves well and anticipated what was happening on the world market. We are maintaining our conservative strategy.'' Mr. Vaughan-Johnson said the Bank of Bermuda's 1993 financial results, due to be released in September, would show stronger figures than those quoted in The Banker survey.

"The total value of the bank's assets will have increased significantly,'' he said. "Pre-tax profits will show a substantial increase -- more than 20 percent up over the year ending June 30, 1992.

"Next year, we will be number one in terms of real profit growth, but overall, the banks have become so similar that there will not be much difference in the future.'' The Banker's survey used the latest information available at the time the listings were compiled. Figures relating to the Bank of Bermuda and the Bank of Butterfield were accurate as at June 30, 1992 but figures for other banks go as far back as 1990. The assessments of Bermuda's two largest banks are listed in full below.

BANK OF BERMUDA Category 1992 1991 Rank (in asset terms) 664 684 Strength (Tier One Capital) $246 million $232 million Asset Size $6.29 billion $5.83 billion Capital Assets Ratio 3.91% 3.98% Earnings $28 million $27 million Real Profits Growth 0.4% -7.3% Profits on Capital 11.9% 12.2% Return on Assets 0.45% 0.47% BANK OF BUTTERFIELD Rank (in asset terms) 795 813 Strength (Tier One Capital) $193 million 173 million Asset Size $3.41 billion $3 billion Capital Assets Ratio 5.67% -2.9% Earnings $27 million $21 million Real Profits Growth 23.9% 2.3% Profits on Capital 14.7% 12.8% Return on Assets 0.79% 0.7%