Bermuda Commercial Bank declares 50% increased Dividend for first half-year

Bermuda Commercial Bank has announced better-than-budgeted results for the first six months of its 1997/98 financial year. In a letter to Shareholders, the Chairman of the bank, Mr. John Deuss, said "I am pleased to announce that Bermuda Commercial Bank has declared an interim dividend of BD$0.15 per share, an increase of 50% over the equivalent period in 1996/97." Mr. Deuss went on to note that "these encouraging figures again demonstrate that BCB is continuing on a path of solid growth."

Managing Director, Peter Roberts, added that "Net income for the six-months ended March 31, 1998, has risen by 66.8% from $1.26 million to $2.10 million compared to the same period last year. Retained earnings, net of the dividend to be paid, have grown 23.4% to $8.1 million from $6.5 million at September 30, 1997." Mr. Roberts also noted that whilst total income had grown 21.5%, total non-interest expenses had increased by only 6.7% over the comparable six-month period. "This demonstrates our commitment to contain costs," Mr. Roberts reported.

During the latter part of 1997, Bermuda Commercial Bank formed Strategic Alliances with State Street Bank and Trust for provision of global sub-custodian services and with Merrill Lynch Asset Management L.P. for provision of asset management products and services. "I believe that the combination of Bermuda Commercial Bank with world class service providers is of high potential benefit to both our shareholders and to our customers," said Mr. Deuss. "Where a service can be developed at higher quality and lower cost through partnership with the specialists, there is a compelling reason for so doing. I welcome these important developments."

Mr. Deuss thanked Dominique Smith for her services to the bank as General Manager Corporate Treasury. Mrs. Smith will be leaving the banking industry to concentrate on her interest in charitable work. Mr. Deuss welcomed in her place Mr. Manuel Yglesias, who had been seconded into BCB some time ago to ensure continuity. "Manny Yglesias," noted John Deuss, "has served with distinction in a variety of banking and treasury management positions for many years, including senior positions in First Chicago and First Curacao International Bank." The key appointment of Gareth Phillips to the new position of General Manager Information Technology was also announced. Mr. Phillips will take responsibility for the major project, announced twelve months ago and now in full progress, to upgrade the bank's bank office.

"BCB remains well positioned for sustained growth," said Mr. Deuss.

"The Bermuda marketplace offers strong business opportunity. The right policies and strategies are in place and I expect the bank's performance during the second half of fiscal 1997/98 to continue to reflect the pattern of success that has prevailed throughout the past five years.

Bermuda Commercial Bank. 23 April 1998.