Bermuda Commercial Bank's net income for the half-year ended March 31 climbed to $2.44 million, up 16.4 percent on last year's $2.10 million.

And the results released yesterday showed retained earnings for the half were $11.12 million -- a rise of 17.4 percent from the $9.47 million posted at the end of September 1998.

The directors also revealed yesterday a dividend of 20 cents per share is to be paid to shareholders.

This level is sustained for the second consecutive period and represents a 33.3 percent increase on the total distributed as dividend for the same period last year.

The dividend increased by 75 percent year-on-year during the 1997/98 fiscal year to reach 20 cents per share.

Bank chairman John Deuss said the rise in net income was particularly pleasing during a period which saw low-interest rates put pressure on bank earnings.

Total cash and balances with other banks was up 5.4 percent from $428 million at the end of September last year to $542 million.

And customer deposits increased 4.5 percent over the same period.

Managing director Peter Roberts said that while total income during the half grew by almost two percent, total non-interest expenses fell 5.6 percent.

He said the figures reflected the Bank's commitment to cost containment through improved efficiency.

The ratio between costs and net income had fallen from 65.9 percent at the end of last year's first-half to a "creditable'' 61.1 percent this year, he said.

Bermuda Commercial Bank formed Strategic Alliances in 1997 with State Street Bank and Trust to provide global sub-custodian services.

It also paired up with Merrill Lynch Asset Management LP to provide asset management products and services.

A statement from the Bank said these relationships continued to flourish during the first six months of this fiscal year.

BCB's share price finished March with an upturn at a bid price of $7.50 compared to $5.125 a year earlier, while earnings per share increased to 57 cents from 49 cents in the same period.