BANK OF NEW ZEALAND.

Auckland Star, Volume LXIII, Issue 134, 8 June 1932, Page 3

BANK OF NEW ZEALAND.

SHARP DROP IN PROFITS.

DIVIDEND MAINTAINED

RESERVE FUND UNCHANGED-

The animal accounts just issued by the directors of the Bank of New Zealand show a sharp fall in the net profits earned during the 12 months ended March 31, the figures standing at £587,023, compared with £545,814 in the previous year. The directors' report, to be presented to the annual meeting in Wellington on June 17, states that the profits, after providing for expenses of management and for all bad and doubtful debts, and after making provision for the annual donation to the provident fund, are £008,2-22 10/7. From this has to be deducted interest on guaranteed stock. £21,199 8/11, leaving a balance of profit for the year of £587,023 7/8. To the latter has to be added the amount brought forward from last year, £020,001 13/1, making a total of £1,218,025 0/9. Dividends Paid. Interim dividends paid in December absorbed £.'100,270 0/10, leaving available for distribution £840,748 19/11. This sum the directors propose should be disposed of as follows: — Dividend on C long-term mortgage shares at 0 pqr cent per annum, £7031 .">/; dividend on D long-term mortgage shares at 7-1 per cent per annum, £17,578 2/0; dividend on preference B shares (making £181,250 for the year), £139,583 0/8; dividend at rate of 7 2-3 per cent on ordinary shares (making £537,500 for the year, equal to 14 l-. - i per cent), £287,500; leaving a balance of £395,050 5/9 to be carried forward. The dividends are to be paid in New Zealand currency. Comparison of Results. Following is a comparison of the bank's profits, expenses and appropriations for the last three years:— 1020-30. 1030-31. 1031-32. £ £ £ Gross profits 2,013,52fi 2.000.112 1,770.6,80 Int. on stock 21.100 21,100 21.100 Salaries ... -101,707 508,989 504,801 Other expenses .. 102.05S 157.526 154,52S Bates and taxes .... 350.048 -1-15,884 502,835 Net profits . £048.531 £845.814 £587.023 Brt. forward 017,502 623.157 (120.002 £1.500.125 £1.108.071 £1,213.025 To reserve . 125,000 25,000 — | Dividends — Mort. cap. 40,210 40,210 -19,219 Banking cap : Govt. ... 231.250 231,250 231,250 Ordinary . 537,500 537.500 537,500 Car. forward £623,157 £626,002 £305,056 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, 7.} per cent; ordinary, 14 1-3 per cent. The number of branches and agencies of the bank has been reduced during the year from 237 to 235. Two branches have been closed, and agencies opened in their place, and two agencies have been closed.