The increase takes effect from April 15, 1994.

The bank's dividend was last increased in April 1992, from 20 cents to 25 cents per share per quarter.

Mr. Michael Collier, Bank of Butterfield president said: "We felt the shareholders' were deserving of an increased dividend.'' The latest increase brings the annual compounded rate of dividend increase over the last ten years to 5.2 percent -- higher than the rate of inflation over the same period.

The increased payout for the last two quarters of this financial year will mean the annual payout will increase from $1 to $1.10 a share, or by ten percent.

As the annual payout is effective for all four quarters in fiscal 1994-95, it will rise again to $1.20 a share or by 9.1 percent.

The bank issued the following caveat that the directors can alter the dividend policy depending on the performance of the bank.

Half-year financial figures for December 1993 indicated that profit increased by 18.5 percent.