for the first six months of its financial year ended March 31, compared to the same period last year according to press release.

The company also announced it had increased its interim dividend by 50 percent to 15 cents per share.

Retained earnings, net of the dividend to be paid, have grown to $8.1 million, an increase of 23 percent over the $6.5 million at September 30, 1997.

While total income had grown 22 percent, total non-interest expenses had increased by about seven percent over the same six month period last year.

"This demonstrates our commitment to contain costs,'' Bermuda Commercial Bank Managing Director Peter Roberts reported.

During the second half of 1997 the bank formed strategic alliances with State Street Bank and Trust for the provision of global sub-custodian services, and with Merrill Lynch Asset Management for asset management.

"Where a service can be developed at higher quality and lower cost through partnership with the specialists, there is a compelling reason for so doing,'' bank chairman John Deuss said.

The bank also announced Dominique Smith would be leaving as general manager of corporate treasury to concentrate on charitable work. Manuel Yglesias has been appointed to her position.

Mr. Yglesias has held senior positions in First Chicago and First Curacao International Bank. Gareth Phillips has been appointed to a new position of general manager of information technology at the bank. Mr. Phillips will take charge of upgrading the bank's back office technology.