The appointment of a new female director was a highlight of the Bank of Butterfield's Annual General Meeting.

Arlene Brock was unanimously voted in as a new director by shareholders of the Bank at yesterday's meeting at the Bermuda Underwater Exploration Institute.

A local lawyer and mediator, Ms Brock replaces Col. Michael Darling who retired from the Board of Directors having served 18 years. Her appointment brings to two the number of women on the Board as former Bermuda Hospitals' Board CEO, Sheila Manderson, still maintains a seat.

Bank chairman Dr. James King delivered the news that net income for the year was a record at $40.3 million and that return on shareholder equity had reached its highest level in 13 years.

Dr. King also referred to "the recent interest being paid to offshore jurisdictions by high-tax countries'' and said that Bermuda was not one of them.

"The Bank of Butterfield has long had very stringent rules in place to ensure that we deal only with legitimate customers who have only legitimate business needs,'' he said. "And I am confident that the other two banks are also very careful.

"The Government of Bermuda have moved quickly and decisively to ensure that Bermuda maintains its first-class reputation. I do not believe that the initiative of the high tax countries pose any serious long term threat to Bermuda.'' Dr. King said that money spent on Y2K compliance was worth it. He also praised managers of Butterfield Asset Management (a mutual fund) for winning for the third consecutive year Standard and Poor's First In the Year award for the performance of the US dollar and Stirling class money market funds.

All of the Bank's subsidiaries enjoyed profits last year. The branches in Guernsey and Cayman both experienced record earnings.

BUSINESS BUC