The Bank of Bermuda Reports Third Quarter Profits

(Hamilton, Bermuda, April 27, 1998) - The Bank of Bermuda Limited today reported net earnings of $43.5 million for the nine month period ended March 31, 1998. This represents an increase of 29% over the same period in the previous financial year and reflects improved results in all geographical regions. Before tax profit of $51.7 million was up $12.2 million from a year ago.

Chief Financial Officer Edward H. Gomez commented, "Fee revenue grew by 19%, with gains in all of our business lines. In particular, corporate trust and foreign exchange showed substantial increases for the period, up by $16 million compared with the same period in the prior year. Growth in interest earnings reflected continuing volume and margin improvements in all geographic regions. Higher expenses were mainly comprised of personnel costs required to support our international business and remained in line with the Bank's operating plan."

President and CEO Henry B. Smith added, "The year-to-date improvement in net income reflects a continuation of the trend reported in prior quarters, and we are very satisfied with the results. Momentum in the Far East has slowed somewhat, reflecting the decline in Asian markets, but to date the Bank's regional earnings remain on target. We recognize the need to stay focused on the execution of our strategic plans if we are to generate continued growth in these highly competitive markets."

Media Contact:

Peter Smith

Vice President

Corporate Communications

Telephone: (441) 299-6006

E-mail: SmithPW@BankofBermuda.com