BANK OF NEW ZEALAND
Manawatu Times, Volume XXVII, Issue 7807, 8 August 1903, Page 3
BANK OF NEW ZEALAND
The ordinary general meeting of the proprietors of the Bank of New Zealand was held at the head offide of the B .nk, Wellington, to-day. Mr P. de C. Malet, Chairman of Directors, presided.. The Directors submitted the balancesheet and profit and loss statement ot tho Bank for the year ended 31st March last.. The profits, after providing for expenses of management, donation to the Provident Fund and for ah bad and doubtful debts in the Bank's current business ire £290,590 12s Id. From this has to be deducted interest on £2,000,000 guaranteed stock, £80,000, leaving a balance of availablo profits of £210,590 12s Id. Qf this sum the Directors have allocated £15,000 12s Id as follows:—In reduction of Colonial Bank Property and Premises Account, £5000; in reduction of Bank of New Zealand property, premises and furniture, £10,000 12s Id, making £15,000 12s Id ; leaving balance in profit and loss of £193,590. This tho Directors propose should be disposed of as follows:—Statutory payment to Assets Realisation Board, £50,000; dividend at the rate of 5 per cent, for the year ended 31st March on the shnre capital, with call paid up (£423,590). £21,180 ; leaving a surplus payable to the Assets Realisation Board in terms of the " Bank of New Zealand and Banking Act, 1895," section 11£ £124.410; (of this sum £7627 Us 8d has.already been paid on account of Income Tax on debentures 1902-3). During the year the agency at Ormondville has been reopened. Agencies have also been opened at Takapau and Mangatainoka, and a branch in the Hot Lakes District at Rotor v a.
In moving the adoption of the report and balance-sheet, the chairman (Mr Malet) made a comparison of the more important items with those shown in the balance-sheet of the preceding year. Capital shows a small increase of £2369, being calls in arrears paid up since the 31st March, 1902. Notes in circulation show a small expansion of JSOOO odd, and stand at the not unimportant figure of £764,906. Bills payable exhibit an increase of £253,724. A further half a million has been added to the deposits. Coin, cish bilances and- bullion have gone up during the year by a sum of £459,717, or by an amount almost equal to the increase iv our deposits. Bills discounted and other advances and securities and debts due to the bank show an increase of £227,907. While we are preparing to take up all legitimate banking business, we »are not attempting to expand our advances, except upon what we deem to be absolutely safe lines.
Funded property, premises, etc. show a decrease of £6470, after placing in reduction a sum of £10,000 12s Id to meet depreciation.- In 1895 the bank property, premises, furniture, and stationery represented in our books the. sum of £429,000. In our present balance sheet this item has been brought down to £350,000.
Assets in liquidation—This item now stands at £212,000, having been reduced during last year by £40,000. Of this sum of £212,000 the East Coast lands dependency alone represents £156,383 7s 6d,' leaving a comparatively small balance against the properties on our hands for sale.
Colonial Bank property and premises were taken over by the Bank -of New Zealand at*J125,371 in 1895. They stand now in our balance sheet at £17,000. During last year this account Has been brought down from £30,000, the difference, .£13,000, being made up by sales of properties at Auckland and Titnaru, and a further sum of £5000 credited to the account by way of appropriation out of profits. . * ■ Profit and loss 'statement -There is a small increase of £2500 in the charges, which is accounted for chiefly by an increase under the head of salaries. I have now dealt with the items in the balance sheet. If you will allow me to carry you back to my report of last year, I stated then that, after meeting all expenses, the bank had, out of profits, paid to the Assets Eealisation Board, and appropriated towards wiping out deficiencies and paper assets in the balance sheet, a sum of £800,873. To frhis we have now to add additional payments to the Assets Board and sundry appropriations this year amounting to £189,410, which, together with the sum of £800,873 mentioned above, makes a total to date of £990,283. The post of General Manager has been filled by the appointment of Mr Alexander Macintosh. "We did not underwrite the whole of the recent 3 per cent. Government loan, but an amount very considerably under one half of it. I have no hesitation in saying the bank 7 was quite prepared to have underwritten a larger sum than was allotted to it. Under date the 27th of last month, the General Manager of' the Assets Eealisation. Board supplied the authorities of the bank with the following information :—The estimated value of the assets representing the debentures unredeemed at 31st March, 1903, is as under : Stations, freeholds, stock, plant, etc., £1,130,000; balances due by purchasers, £300,458 ; payment by bank (in anticipation of which debentures were' redeemed 31st March), £50,000, total £1,480,458; less overdraft, £18,000, making £1,461,658. Taking these figures as a basis, the deficiency on realisation should be say, £608,000. Of course the figures supplied by the General Manager of the Assets Board are- approximate only. Since the accounts of the Assets Realisation Board were made up (31st March, 1903) the sales- of property to 29th July last made by the Board represent a sum of £61,453. The balance-sheet of the Bank shows that a sum -will- be paid over to the Assets Eealisation Board in accordance with the law,- to bo devoted for the further redemption of the outstanding debentures. Consequently the deficiency estimated by the General Manager of the Board as on the 31st March last Should be reduced to, say, £492,000. Dividend- The satisfactory results of the year.fully warrant the payment of the maximum dividend now authorised by legislation—viz., five per cent, per annum. If you in the recommendation a dividend at that rate for the. twelve months ending the 31st March last will be payable at the head office on Monday next, and at the branches upon receipt of advice. 1 now move the adoption of the report and balance-sheet.
Mr Martin Kennedy seconded the motion.
Some discussion took place on the question of legislation to provide against the expiry of the Government guarantee in about twelve months.
The Chairman said the only information available was that contained in the Governor's speech at the opening of Parliament in which it was stated legislation ■would be necessary. The shareholders could rely that the matter was receiving ihe unremitting care and attention of the Board.
The motion for the adoption of the report and balance-sheet was agreed to after further discussion.