business and on its recently rejuvenated global custody department, the company's general manager said yesterday.

The company's corporate management subsidiary is also expected to grow, General Manager Peter Roberts told a meeting of the Hamilton Rotary Club. The bank was put on this path to growth by the decision five years ago to restructure. Barclays Bank, which had a 32 percent shareholding, decided to divest itself and undertook a radical downsizing and exit from the retail business to make the sale easier. The company eventually sold out to First Curacao International Bank.

The bank cut staff down to 50 from 150 employees. The bank was de-unionised and a new electronic central banking system was installed. In 1991 total assets were around $320 million and fell to $210 million at the time of the sale. Since then assets have crept up to around $620 million.

From a half-million dollar profit under restructuring the bank recorded a $2.9 million profit in 1996/97 financial year.

"I need to say quite clearly to those of you with an analytical frame of mind that growth at this very high rate is neither what we plan for or expect in the coming years,'' he said. "Our targets and our aspirations are for consistent growth in net income before general and administrative costs coupled with consistent containment of the growth in our cost base.'' The bank is also aiming at a 50 percent cost to income ratio in improving its bottom line. From a ratio of 92 percent in 1993 the bank has improved to 70 percent in its last quarter.

The bank has completed a total restructuring of its policies and procedures, upgraded the central banking system and to the cash management system. Mr.

Roberts expects the bank will be Year 2000 compliant in the first quarter of next year.

Strategic alliances with worldwide partners are part of the development of the bank. The bank has formed such alliances with Merrill Lynch Asset Management LP and with State Street Bank and Trust.