share buyback programme. Last week shareholders at the annual general meeting authorised the board of directors to develop and implement a programme to buy the bank's shares.

Usually companies buy back their own shares as a means of boosting earnings per share because of the lower number of shares outstanding.

"We view a share buyback programme as integral to our broad effort to enhance shareholder value,'' chief financial officer Sarath Wikramanayake said.

"Although it would be imprudent to speculate how the market will react, increased earnings per share is one of the many factors that could favourably influence a stock's price and, hence, shareholder value. We will monitor market conditions and prices closely to capitalise on repurchase opportunities as conditions warrant.'' Mr. Wikramanayake said the bank had established guidelines on when and how much shares it would repurchase.

"It is not in the best interest of the shareholders or the bank to talk about these guidelines,'' he said.

The Bank of Butterfield has about 20.366 million shares outstanding. The stock traded yesterday at $14.75. Its 52 week high was $15.63 reached on August 21.

Since the start of the year the stock price has risen about 64 percent.

Shareholders also voted for a stock option plan for directors and senior executives at the annual general meeting on October 29.