Bermuda Home Increases Dividend

Hamilton, BERMUDA -- Bermuda Home Limited has announced a 42% increase in earnings to September 30th, 1997, the first six months of its financial year. Net income rose to $4,718,000 compared to $3,238,000 in the first half of last year although $686,000 of the increase represented a one-time recovery of provisions made in prior years on the carrying cost of the Company's investment portfolio.

"Almost all our primary lines of business showed strong growth over last year," said Mr. Arthur Haycock, President and C.E.O. "Mortgage closings increased 34% to $38,420,000 while personal and consumer loan approvals were 30% higher at $6,586,000. Property sales through Bermuda Realty Company increased 14% over the same period last year and property appraisals increased 43%."

Total assets grew 5.5% year over year to $540,915,000. Loans and mortgages outstanding increased 8.2% compared to last year while customer deposits grew 4.9% to $481,002,000. Shareholders equity rose 11.6% to $55,051,000.

"In recognition of our improved earnings, Bermuda Home's Board of Directors has increased the common share dividend from 11¢ to 12¢ per share for the quarter ending December 31st, 1997," said Mr. Haycock. "This represents a 9.09% increase in the common share dividend on an annual basis."

The six month report will be mailed to shareholders in the second week of December.