HSBC Bank of Bermuda boosted its net profit by nine percent to $163 million during the first six months of this year, despite tough economic times.

The bank's operating profit also rose 10 percent to $179 million for the six months ended June 30, 2008, compared to the first half of last year.

Net operating income, meanwhile, was up seven percent to $340 million over the same period, but total assets were down one percent at $10.5 billion at June 30, 2008 compared to December 2007 and they declined $505 million or five percent compared with a year earlier.

Investment funds under management totalled $32.6 billion at the halfway point of the year - up $8.5 billion or 35 percent compared to the end of last year and up $11.4 billion or 55 percent compared with the previous year.

Philip Butterfield, chief executive officer of the Bank of Bermuda, said: "I am pleased that we have been able to exhibit a 10-percent increase in operating profit during the first six months of 2008 compared to the same period last year.

"Net profit of $163 million included $137 million from our Bermuda-based operations (banking businesses contributed $103 million and our insurance business contributed $34 million) and $26 million from overseas operations, primarily group private banking trust business.

"Net operating income of $340 million included $221 million from Bermuda banking businesses and $46 million from our Bermuda-based insurance business. Overseas operations contributed $73 million."

He said that a critical part of the bank's operations during the present challenging economic times had been to maintain a high level of liquidity and a strong balance sheet with high-quality, liquid investments and a growing, well-secured, mortgage portfolio.

"Mortgage growth continues with an increase of $98 million, eight percent compared to December 2007 and $177 million or 15 per cent compared with a year earlier," said Mr. Butterfield.

"I would like to take this opportunity to thank our customers for their continued loyalty and support; and to our staff for their commitment and contribution to the bank's continued success."