The company said net income for the three months to Dec. 31 was $38.7 million, or 66 cents per diluted share, up 33.8 percent from the $28.9 million, or 44 cents per share, it earned in the same period a year ago.

"They had a fantastic quarter," said Mike McMahon, a bank analyst at Sandler O’Neill & Partners. "They’ve doubled profitability since O’Neill took over (in late 2000)."

For all of 2003, the bank earned $135.2 million, up 11.6 percent from the $121.2 million earned in 2002. The annual earnings per diluted share were $2.21, up 30 percent from $1.70 per share in 2002.

Bank of Hawaii had predicted a year ago that it would earn $131 million in net income in 2003.

Michael O’Neill, chairman and chief executive officer, said in 2003 the company successfully completed its first three-year plan — that included selling off most operations outside the state and replacing an aging technology system — and will now embark on a new plan focusing on increasing revenue through selling more products to each customer and efficiency among employees.

"This was kind of a celebration," O’Neill said from New York where he was meeting with investors. "We laid down a pretty ambitious plan and we accomplished it. We feel very good about the fourth quarter and the trajectory we are on, and we have confidence that the plan that we today laid out will result in continued value creation for our shareholders."

O’Neill said the new three-year plan will not result in large layoffs. There were about 100 employees cut when the bank upgraded its technology system.

The fourth quarter benefited from the technology replacement project, which had been paid off earlier in the year. Last year the bank took a $7 million charge in the fourth quarter as part of its technology project.