Bermuda Home expects sustained profitability for the year to March 31, 1997, buoyed by record quarterly mortgage closings in the fourth quarter and record real estate sales.

In just its fourth full year of operation, Bermuda Home declared profits of $5.374 million and nearly $7.5 million for the years ending 1995 and 1996, respectively.

President and CEO, Arthur Haycock, said yesterday, "Mortgage closings this fiscal year trailed closings for much of the year until the final quarter, when it picked up quite a bit and came up above last year's level.'' Mr. Haycock said, "The real estate market in sales seems to have picked up a little bit and we are pleased with that improvement and hope that it will continue.'' He is reporting to shareholders that personal and consumer loan activity continued to improve on a quarter-to-quarter basis, with overall results exceeding last year.

Customer deposits grew satisfactorily during the year and more depositors took advantage of high yields through the five-year fixed-term investment deposits.

Mr. Haycock said, "Overall revenues are projected to be above last year, but operating expenses are expected to rise at a higher rate. This increase in expenses was planned for in our initial budget and relates to anticipated costs associated with new leased property, marketing and information systems.'' But Bermuda Realty has also recorded strong real estate sales in the final quarter which gives the firm's real estate arm a record year in property sales.

Mr. Haycock said, "In spite of this, Bermuda Realty's net results will be below those of last year due to higher operating expenses and to lower commission income on our long term rental business.'' In fact, Bermuda Realty, as a unit, may now record its first net loss. The unit only contributed about $100,000 to Home's bottom line last year, and about $116,000 the year before.

Highlights of Home's year include the unanimous shareholder decision taken last February to change company bye-laws allowing Home to buy back its shares, subject to board authorisation.

The move brings the company in line with other public companies, here and abroad, that seek to improve shareholder value.

Home chairman, Donald Lines, said at the time that at recent share price levels, the share re-purchase programme would allow the company to invest its excess cash and capital in a more profitable form than in re-deposits with banks.

The company will use the authorisation at times in the market when the share price is right. Any shares purchased by the company will be cancelled, reducing the number of shares outstanding.

Formed through the merger of the mortgage and property divisions of the Bank of Bermuda and L.P. Gutteridge Ltd., Bermuda Home granted 362 mortgages worth $66.74 million in the first year of operation, as Mr. Haycock indicated Bermudians were taking a cautious investing stance because of that year's Independence debate.

Home's assets last year exceeded half a billion dollars and Mr. Haycock at the time attributed the more than $2-million improvement in bottom line earnings to increased mortgage activity.

BUSINESS BUC