profit two years after it was established.

The bank, which announced its six month earnings last week, made the statement as it reported its overseas branches and subsidiaries are making a increasingly significant contribution to the bank's profits.

The bank's total net income derived from its overseas branches and subsidiaries, increased by more than 50 percent, and contributed almost 30 percent to the Group's net income of $16.4 million, up 16 percent.

"Our London branch has almost reached a critical break-even point, and is expected to become firmly profitable in the very near future,'' a press release from the bank said.

The Bank of Butterfield claims to be the only Bermudian bank with a full service branch office in London.

Mr. Michael Collier, the bank's president and chief operating officer said: "We started the London office as a `green field' operation, starting from scratch. All our entities have their own cost centres, and know they must generate revenue to off-set the cost of operating.'' The branch is engaged in treasury activities, and provides private banking services to overseas investors, and high net worth individuals in the UK.

At the end of fiscal 1993, the bank reported a general improvement in the economic outlook in the UK had resulted in increased confidence by investors and business.

This trend has continued, said Mr. Collier, with the UK market improving better than other European countries.

The bank has a wholly-owned securities broking subsidiary, Seymour Pierce Butterfield (SPB), which is said to have benefited from the renewed confidence in the London International Stock Exchange.

SPB is increasingly involved with the bank's global treasury and capital markets activities. "Bermuda-based earnings are generally good as a result of our continued success in international business using Bermuda as a base, in trust operations, and in investments management services, which benefited from a significant increase in assets under management,'' the statement added.

In contrast, the domestic banking business showed only moderate growth.

The bank has recently assigned regional heads with geographical responsibility with the Bank of Butterfield Group.

The heads are as follows: Asia Pacific, Mr. Hamish Macpherson; UK, Dr.

Christopher Honeyborne; Offshore Europe, Mr. Graham Brooks; and Caribbean and Latin America, Mr. Nicholas Duggan.