BANK OF NEW ZEALAND.

Auckland Star, Volume LX, Issue 133, 7 June 1929, Page 9

BANK OF NEW ZEALAND.

12 MONTHS' OPERATIONS.

PROFITS EXCEED €2,000,000.

USUAL DIVIDENDS PAYABLE.

The annual report and balance-sheet of the directors of the Bank of New Zealand just issued shows that the yearly period ending March 31 last has been conspicuously successful, new records having been created in both gross and net profits. The gross profits were £1,916,600, and with the addition of £212,000 from reserves no longer required, become £2,128,605. The directors state that the profits, after providing for expenses of. management, all bad and doubtful debts, and other contingencies, and after making provision for the annual donation to the provident fund, also for bonus to staff, are £934,153. Prom -this has to be deducted interest on guaranteed stock, £?1199 leaving a balance of profit tor the'year of £912,954. To the latter has to be added provision previously made for certain doubtful advances, not now required, and recoveries, £212,000 and the balance brought forward from last year, £582,525, making a total ot £1,707,454. The Dividends. Interim dividends paid in December absorbed £363,199, leaving available for distribution £1,344,284. This sum the directors propose should be disposed of as follows:—Dividend on C long-term mortgage shares at 6 per cent per annum, £7031; dividend on D long-term mortgage shares at 7£ per cent per annum, £17,578; dividend on preference B shares (making £162,500 for the year), £120,833; 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 £3,425,000), £275,000; leaving a balance of £617,591 to be carried forward.

Balance-Sheet Items. The paid up capital of the bank now stands at £6,555,113, an increase during the year of £86,915 due to payment of the final instalments of the first issue of preference shares for the mortgage department. After payment of dividends, the aggregate of capital, reserve fund and undivided profits will be £10,900,704, an increase of £39G,951 since the previous balance-sheet.

The balance-sheet total is £54,561,908, an increase of £4,682,357. Notes in circulation, £4,290,793, show an increase of £493,713. Bills payable and other liabilities have increased by £331,751 to £4,286,629. Deposits at £33,939,651 are higher by £3,600,618, while advances, including discounts, at £22,841,450 have increased ly only £93,231. Coin, cash balances and deposits with bankers amount to £7,172,140, a decline of £355,286. A further substantial increase appears in the amount'of funds in London. Last year the total-was £1,953,570 more than in 1927; there is now a further increase of £2,454,086 to £12,459,218. The latter comprises money at call and short notice, Government securities and other securities £9,097,168, an increase of £1,977,363, and bilk receivable in London and in transit £3,362,051, an increase of £476,724. Holdings of public securities are all larger: New Zealand Government, : £4,008,886, by £364,556; Australian Government, £3,560,161, by £1,491,776; and municipal and other local bodies' securities, £1,227,215, by £247,629. The aggregate of the three classes of investments is £8,796,263, an increase of £2,103,992. Landed property, premises, etc., .at £549,383 shows an increase of £15,787.

Mortgage Department. The balance-sheet of the long-term mortgage department shows that of the paid-up capital, £703,125, loans had absorbed £698,375 16/5, leaving only £4749 3/7 transferred to the banking department. A year ago £616,209 15/. of capital had been paid up; loans totalled £319,761 14/11, the balance transferred to the bank being £296,448. Past Years Compared. Following is a comparison of the bank's profits, expenses and appropriations for the last three years:—

1026-27. 1927-2S. 1928-29. £ £ £ Gross profits 1,974,301 1,S90,3S0 2,128,605 Int. on stock 21,199 21,199 21,199 Salaries ... 44S,4S5 4G6,3S0 478,853 Other exp'n's 162,7S5 164,072 169,727 Rates, taxes 350,740 323,339 333,S66 Net profits . 847,671 841,878 912,954 Otlier sources* 143,420 73,511 212,005 Brt. forward 565,378 584,656 582,525 1,556,470 1,500,045 1,707,484 To reserve . 200,000 124,175 275,000 Dividends — Mort. capital 3,064 24,595 46,143 Banking capital: Govt 231,250 231,250 231,250 Ordinary . 537,500 537,500 537,500 Car. forward 5S4,656 5S2.525 617,591 ♦Included in gross profits.