million on its earnings of $31 million from continuing operations, leaving it to declare a profit of $10.4 million for the year ended June 30.

The profit represents a drop of 64 percent compared with net earnings of $28.8 million for fiscal 1996. The bank took a $10.5 million charge to cover trading losses in Singapore and UK, and another $10.1 million charge for the cost of closing down operations.

Since president and chief executive officer John Tugwell took over almost three months ago, he has closed down the 23-staff Singapore office and reduced the scale of the bank's UK operation by cutting 50 staff. Butterfield Securities, the bank's corporate finance and institutional stockbroking subsidiary in the UK, continues in operation with about 25 staff.

In a Press release, Mr. Tugwell stated the decision to take the full charge for the closures during the 1997 financial year was it would help improve the company's bottom line.

"I am confident that this decision will help pave the way to improved net income and shareholder value by the end of the current financial year,'' he stated. "While it is disappointing to report a profit of $10.4 million, we're extremely pleased that year-end results also point to the fundamental strength of our continuing operations.

The strength of our business is indicated by our solid customer base, and strong capital and liquidity positions, and of course, the fact that our core earnings rose by 7.5 percent.'' Total income from the bank's continuing operations was $135.9 million at year end, up about eight percent from the previous fiscal year. Assets under investment management in Bermuda grew to $1.9 billion, an increase of 17 percent over the previous year.

Chief financial officer Sarath Wikramanayake said the bank was excluding discontinued UK and Singapore operations when stating its 1997 results as it was the "most accurate way to portray our business as it exists now and the best way to offer meaningful comparison'' with 1996 figures.

"The steady increase in total income points to an inherently stable customer base across all the group's continuing operations,'' the press release stated.

"This figure has consistently risen over the years, in particular with respect to earnings from trust and fund administration and investment management activities.'' Total expenses of continuing operations for the year ended June 30 was $104.9 million, up about nine percent from the previous fiscal year. Group assets increased about nine percent to $4.43 billion at year end. Of that figure total deposits stood at $4.08 billion, up 10.7 percent.

In the year to date, the bank's stock price has gained about 60 percent in value, closing on Wednesday at $14.38. Most gains have come in the last three months.