SAVINGS BANK.

Auckland Star, Volume LXIII, Issue 98, 27 April 1932, Page 3

SAVINGS BANK.

YEAR'S WORK REVIEWED.

"SATISFACTORY STATEMENT."

NECESSITY FOR THRIFT.

Trustees of the Auckland Savings Bank held their 84th annual meeting this afternoon. "In times such as these it is particularly gratifying to present such a satisfactory statement as is revealed by our annual balance-sheet," remarked the president, Mr. H. E. Vaile.

In recent years, said Mr. Vaile, thrift had perhaps not been quite so popular, but hard times had very forcibly impressed the necessity for saving, and more general recognition of that would do much to contribute to a sounder financial basis and a return to happier times. 111-founded rumours and apprehension contributed to unrest and uneasiness, and retarded a return to normal conditions, and more confidence in the ability to win through was necessary. The war slogan of "business as usual" might not literally be possible at the moment, but the underlying sentiment was indicative of all that was best in British character, and the people would be false to tradition if they allowed difficulties to dismay them.

Deposits, continued Mr. Vaile, were less by some £240,500, but were in excess of withdrawals by f 58,500, which, together with interest, £281,000 odd, credited to accounts, increased the depositors' balances by some £340,000. Withdrawals were less' by £242,000. The assets had, of course, correspondingly increased. Mortgages were greater by £122,000, and debentures by £111,000. It had been difficult, in the face of restrictive legislation, to know what was the best course to adopt as regards investments, but, following the broad view in the past, first-class mortgages had been favoured, as the bank considered that its own depositors should bo assisted. The provision made for securities in course of realisation and reserve for mortgage contingencies should be ample. Evidence of Progress. Cash at banks and in hand showed a considerable increase, practically £900,000 being in that form, due, of course, to a desire to maintain adequate liquid resources. In addition, Government debentures stood at well over £2,000,000. The total fluids had increased by nearly £385,000, providing ample evidence of progress and security. The revenue account had reached a new record of £372,000, after making provision for contingencies, and, of course, would have been greater but for the rebate of 4 per cent in the bank's mortgage rate made in a desire to cooperate with the Government in its endeavour to reduce interest charges. The lead had not been generally followed, but no doubt had considerably helped the mortgagors. Interest credited to depositors had increased by over £10,000, notwithstanding the reduction of i per cent in the rate. The gross and net profit accounts reflected the interest concessions. The year's net profit of £54,787 was £13,000 odd less than last year, but, with the £2020 brought forward, the appropriation account stood at £50,807, which in the circumstances had to be regarded as extremely satisfactory. In accordance with the board's decision, extra provision for doubtful securities and depreciation of buildings and fittings had absorbed approximately £14,L>0, and £40,000 had been transferred to the general reserve and investment fluctuation account, making the total of that account no less than £700,000. The amount to be carried forward to next vcar's accounts was £2057. Details of Bank's Business. Details of the bank's business for the vear were as follow, the figures in parentheses being those of the previous year: Deposits received during the year amounted to £4,015,750 (£4,262203), and withdrawals totalled. £3,907,207 (£4 109,2G5L Interest credited to depositors' accounts was f 2B1 > 2 " (£271,050), and averaged n/ \ *- 12/0) per operative account, the rate allowed being 4J per cent for the first four months and 4J per cent for the remaining eight months. The amount standing to the credit of the depositors was £0,758,038 ( £0,418,288), an increase of £339,750. New accounts opened during the year numbered 19,557 (21,201), the schools' banks department accounting for 2129. Accounts closed totalled 14°149 and accounts remaining open were increased by 5438 to 158,599 (153,161). The general average per operative account was £02 16/4, as against £62 1/6 for 1931. Depositors transactions totalled 919,408 (930,893). During the year 018 applications were dealt with for loans. Of that number 287 were declined for various reasons, 242 granted in full, and 89 accepted for lesser amounts. The advances totalled £194 285 (£283,250), and repayments £72,434 (£9O,9GS). The popularity of the easy repayment terms was once more evidenced by the following classification:—£2o and under, 745; between £20 and £50, 216; between £50 and £100, 72; over £100, 101. The latter included 48 mortgages fully repaid. The net increase in the number of mortgage accounts was 218, and the total now field was 41S1. First mortgages on freehold property totalled £3,240,122. , The average amount of city and suburban loans was £689 ( £700), and that on farm securities £2204 ( £2322). Interest payments numbered 16,940 (16,435). Advances under the heading of debentures totalled £136,894 (£275,800). The sum of £25,912 had been repaid. Debentures were shown at the total cost price of £3,199,234 (£3 088,252). The actual face value, however, was £3,202,587, and constituted first-class investments. The total funds now stood in the balance-sheet at £7,485,034, an increase of £387,305. The death of two trustees who had served the bank faithfully for many years, Messrs. R. Farrell and N. A. Nathan, was referred to by Mr. Vaile. Efforts to Encourage Thrift. Touching on thrift, Mr. Vaile said that two of the bank's special efforts to encourage thrift —by means of thrift clubs and school banks —bore some evidence of the economic position. The deposits were a little less, and that also applied to the bank's general business, but the enthusiasm of headmasters, teachers, thrift club collectors and others had in no way abated, and the trustees were grateful for their assistance. The j manager had received many tributes to , these efforts. I

In conclusion. Mr. Vaile expressed his thanks to the deputy-president. Mr. .1. Alexander, and the trustees for their assistance and co-operation, and for so well maintaining the standard of trusteeship which had been such a feature of the past. The manager and staff were also to be congratulated.