9 million for fiscal 1993 -- 26 percent up on the previous year.

Mr. Donald Lines, the Bank's president and CEO, said a 16.1 percent ($13.24 million) surge in fee income to $95.35 million had driven the performance.

And he added that, if it was not for continuing concerns about the local recession, the Bank's results "would have been much more dramatic''.

He said the Bank's entire profit was due entirely to its international business, which brought in a net income of $37.235 million, compared with a domestic banking loss of $1.377 million.

International business accounted for 82 percent ($133.437 million) of its total revenues of $162.741 million.

"We're a classic example of a business from a small Island going out into the world and making its mark,'' said Mr. Lines. "We're much bigger internationally than the Bank of Butterfield.'' The Bank's record earnings were achieved despite more than doubling its provision for possible loan losses to $8.68 million, compared with $4.06 million in 1992.

The Bank's revenues for the 12 months to June 30, 1993, were up by 7.4 percent ($11.259 million) over 1992.

Operating expenses went up by 3.1 percent ($3.84 million) to $126.88 million.

Net interest income fell by 4.7 percent ($2.82 million) to $57.36 million, reflecting the increased provision for loan losses.

Fees and investment income went up by 15 percent ($14.1 million) to $105.4 million as a result of improved performance in the Bank's international operations.

Net income from overseas operations contributed $11.6 million, or over 30 percent, of the Bank's total profit.

On the expenses side, salaries increased by 6.6 percent ($3.725 million) to $59.

948 million).

Pension and staff benefits dropped by 6.7 percent ($751,000) to $11.937 million, income and payroll taxes went up by 1.8 percent ($123,312) to $6.862 million and property costs went up slightly to $17 million.

Systems and communications costs declined by one percent ($176,000) to $16.46 million and corporate, marketing and other expenses dropped by 4.8 percent ($734,000) to $14.669 million.

Net income per share went up from $1.55 to $1.96 and return on equity improved from 11.5 percent in 1992 to 13.6 percent.

Assets increased by 8.7 percent ($549 million) to $6.839 billion, while liabilities went up by 8.8 percent ($528 million) to $6.521 billion.

Funds under administration went up to $25 billion, including $15.5 billion from 356 funds administered on behalf of 91 different investment management groups.

The figure is expected to further increase to $28 billion as a result of the Bank's proposed agreement to acquire the institutional trust business of Standard Chartered Equitor Group in Hong Kong and Singapore.

Mr. Lines said the improved 1993 results was due to a three or four year programme to reduce costs and make the operation more efficient.

For the first time, the Bank also disclosed its full contribution to the Bermudian economy.

In 1993, the Bank: Extended 223 new mortgages worth $59 million; Contributed $6.8 million to Government in payroll taxes, levies, duties and license fees, accounting for three percent of all Government revenues; Accounted for over eight percent (over $90 million) of Bermuda's total foreign exchange earnings; Helped the construction industry with the decision to proceed with the $40 million construction of its new administrative building: and Donated hundreds of thousands of dollars to help various organisations in the community.

"It may be a bit of a shock to international companies to learn the extent of our corporate giving,'' said Mr. Lines. "It's quite dramatic.'' 1993 RESULTS PROFIT $35.858 million REVENUES $162.741 million EXPENSES $126.883 million ASSETS $6.839 billion LIABILITIES $6.521 billion EARNINGS PER SHARE $1.96.