year to March 31 of $7,509,448 -- a marginal improvement of just over $50,000 or less than one percent over the prior fiscal year.

The $50,000 roughly represents the difference between the increase in net revenues (up $572,000 to $15.2 million) against the increase in net operating expenses (up $522,000 to $7.7 million).

Fee income from lending rose 19.4 percent, buoyed by a strong last quarter in mortgage, personal and consumer lending. Net interest income rose 3.2 percent.

Mortgages and loans outstanding increased by $21.9 million to $374.5 million, while cash and deposits at banks increased by $9 million to $130.9 million.

This was offset by an increase of $27.8 million or 6.3 percent in customer deposits to $469.6 million.

Total assets rose 6.5 percent by year end to $526.3 million. Shareholders' equity at year end was $52.1 million, up $4.9 million or 10.3 percent.

New mortgage business and further charges with existing clients amounted to $59.3 million.

More than 90 percent of the granted mortgages involved owner-occupied dwellings, while applications to finance the construction of houses fell, in line with Department of Planning statistics, which indicated a 21 percent drop in the completion of new residential dwellings units last year.

The personal and consumer loan department granted loans to 775 clients, totaling $10.1 million, a 45 percent increase, as loan administrators were able to reduce loan delinquency by more than 40 percent.

Financial ratios for the company include a risk weighted capital ratio of 22.58 percent and return on average shareholders' equity of 15.11 percent.

The company, in its third year, employs 80 people, led by chairman, Donald Lines and president and CEO, Arthur Haycock.

They said in the report to shareholders: "...as a result of unrealistically low prices quoted for local shares listed on the Bermuda Stock Exchange (BSX) during recent months, we obtained shareholders' approval...to allow Bermuda Home to purchase its own shares...'' "Bermuda Home has more than adequate capital and liquidity and in the current environment we consider the purchase of our shares at favourable prices to be a profitable way of investing cash as an alternative to bank deposits...and all shares purchased will be cancelled.'' BUSINESS BUC