Bermuda Commercial Bank Announces Half-Year Earnings

Hamilton, Bermuda: 26 April 2000 - Bermuda Commercial Bank has released earnings figures for the first half of the 1999/2000 fiscal year ended March 31, 2000. Net Income stood at $2,828,604 representing an increase of 15.74% over the comparative figure for the previous year. The income figure was the result of a 5.97% increase in Revenues and an actual decline of 0.25% in Total Expenses. The combined effect of asset growth and a wider net interest spread produced a 19.66% increase in net interest income. Earnings per Share rose from 57 cents for the previous six-month period to 66 cents for the first six months of 1999/2000 - an increase of 15.79%. Bermuda Commercial Bank Chairman,

Mr. Deuss expressed satisfaction with the Bank's annualized Return on Equity of 15.76% (compared to the previous year's rate of 12.08%).

Acting Managing Director, Mr. Barry Munholland, added that the Bank's focus on cost control had reasserted it's influence on the efficiency ratio which moved below 60% for the first time. Total Expenses were 57.49% of Revenues. The decline in expenses is attributable to the continuous improvement in the use of systems for straight through processing. This allows the banks to handle a larger volume of transactions without adding material costs. Ongoing improvement in this key ratio remains one of the Bank's central targets.

The risk profile of the Bank remains very conservative. The mortgage portfolio remains in run off as the bank works to reduce its exposure to real estate. As a result, loans as a percent of customer deposits fell to 2.59%.

The Bank's Board of Directors resolved that a dividend of 20 cents per share be paid to shareholders. The current share price of $5.00 per share appears low given the excellent performance of the Bank. At this level the annualized dividend yield is 8.00%.