PROFIT SLIGHTLY LESS.

Auckland Star, Volume LIX, Issue 134, 8 June 1928, Page 5

PROFIT SLIGHTLY LESS.

BANK OF NEW ZEALAND. USUAL DIVIDENDS PAYABLE. RESERVE OF £3,150,000. (By Telegraph—Own Correspondent.) WELLINGTON, Thursday. The Bank of New Zealand made a net profit of £841,878 5/1 in the year which ended on March 31, against £847,671 in the previous financial year. To last year's profit there has to be added surplus on realisation and on maturity of Government and other securities £73,510 13/10, and the balance brought forward from last year £584,655 12/10, making a total of £1,500,044 11/9. The directors recommend the payment of dividends at the same rate as last year, including the bonus of 1 per cent on the Government's B preference shares and the ordinary shares. Additions to the reserve fund will make it £3,150,000. Allocation of Surplus. The annual meeting will be held in Wellington next Friday. Interim dividends paid in December absorbed £350,882 5/1, leaving available for distribution £1,149,162 6/8. This sum the directors propose should be disposed of as follows:— <6 Dividend on C long-term mortgage shares at 6 per cent per annum, £4394 10/7. Dividend on D long-term mortgage shares at 7J per cent per annum, £10,983 19/8. Dividend on preference B shares (making £162,500 for the year), £120,833 6/8. Bonus on preference B shares, £18,750. Dividend of 1/4 a share on ordinary shares (making £500,000 for the year, equal to 2/8 a share), £250,000. Bonus of 1 per cent on ordinary shares, £37,500. Transfer to reserve fund (making £3,150,000), £124,175 6/1. This leaves a balance to be carried forward of £582,525 3/8. In addition to the transfer from profits, the directors have added to the reserve fund £824 13/11, comprising fractions and unallotted D long-term mortgage shares.

Increase of Capital. The paid up capital of the bank now stands at £6,771,198, the increase of £242,013 being due to the increase of the capital of the long-term mortgage department from £374,197 to £616,210, the latter including £88,942 5/ paid in advance on D shares. The gross profits for the year were £1,816,869, and in addition there was a surplus of £73,511 on the realisation of securities, making a total of £1,890,380. Salaries and allowances at head office and 237 branches and agencies totalled £466,380; directors' remuneration, including London board, £9312 10/; general expenses, and audit expenses, £154,760; and rates and taxes, £323,339; a total of £953,792. The dividends this year are at the same rates as last year, viz.:—Preference shares, A (held by Government), 10 per cent; B (held by Government), 13 2-11 per cent; C (held by Government), 6 per cent; D, 71 per cent; ordinary, 14 1-3 per cent.