BCB announces good financial results

Hamilton, BERMUDA (November 14, 1997) €” Bermuda Commercial Bank today announced its results for the 1996/97 fiscal year ended 30th September. Net income increased by over 34% to $2.9 million and the balance sheet grew 53% to over $618 million. The annual results were presented to the Staff, Management and Directors of the Bank on Monday evening, 10th November, 1997. The Chairman, John Deuss, noted that the growth percentages were consistent with the previous year and that "growth at this level for a second consecutive year is an excellent achievement. BCB has shown control of the growth of its cost base; this is the key to these excellent results. The ratio of operating income to cost can be seen to have increased steadily over the past five-year."

Managing Director, Peter Roberts, pointed to the increase in commissions and fees earned by the Bank during the year as new prestigious clients brought their business to BCB. "The strength of our financial results reflects a marked improvement in the consistency and focus of our marketing efforts," said Mr. Roberts. "Looking forward to 1997/98, we expect to see further steady increase in profitability as we continue to control expenses. The marketing effort and cross selling between the business areas within the Bank will be primary points of attention." Mr. Roberts also identified strategic alliances with State Street Bank and Merrill Lynch as cornerstones of the BCB marketing platform. "The way forward will give improved definition to our product range and a marketing strategy built around these products," said Peter Roberts. "We will continue to improve our procedures and we are intensifying the development of electronic systems mirroring these procedures to deliver flawless, seamless, service through better systems to our customers."

Other results included an increase of customer deposits from $372 million to $584 million year on year, an increase of 57%. Total cash and deposits with other banks grew to $570 million from $350 million, an increase of 63%. Earnings per share increased 33% to 68 cents compared to 51 cents at the prior year end. Return on equity rose to 9.84% from 7.89%. The Directors meeting on November 12, announced a $0.10 dividend for the half year ending September 30, 1997. This makes the dividend for 1996/97 $0.20, up by 33% from the previous year.

Summary of results:

$ millions

1997 1996 1995 1994 1993

Net int. income 4.73 3.91 3.05 2.44 2.43

Net income 2.93 2.18 1.62 1.04 0.51

Total Assets 618.10 404.80 272.60 235.40 215.70

Capital Funds 29.73 27.66 26.12 11.60 10.71

Note: The BSX has been notified that trading in BCB shares and warrants by Directors and Staff

of BCB suspended since 1 October, 1997, could recommence on Monday, 17 November, 1997.

This is in accordance with BCB insider trading policy.