will not be returning to the bank, it was revealed yesterday.

Health reasons were cited forMr. Collier's early retirement, who took leave earlier on doctor's orders.

"We are very sorry but realise that health is of paramount importance and we wish Mr. Collier all success in future,'' Bank of Butterfield chairman Sir David Gibbons said.

At the bank's recent AGM, Sir David said: "Michael has been very tired and has done an awful lot of work in the last year, so he is now taking a holiday which he probably should have taken earlier this year.'' Mr. Collier, 50, joined the bank in 1963.

"A search committee of the board has been appointed to make recommendations on Mr. Collier's successor,'' the bank said.

Scott McDonald is currently the bank's acting CEO and will continue in the post. He was vice chairman and chief operating officer from 1987 to 1992 when Mr. Collier succeeded him.