DOMINION BANKING.

Auckland Star, Volume LXVI, Issue 170, 20 July 1935, Page 4

DOMINION BANKING.

SUCCESSFUL OPERATIONS. LAST YEAR'S RESULTS. DIVIDEND 4 PER CENT. A net profit of £7802 is disclosed in the accounts of the Dominion Investment and Banking Association for the year ended June 30. This result is arrived at after writing down furniture and fittings and providing depreciation on certain securities.

With the balance brought forward from the previous year, £910. there is available for appropriation £8721. The directors recommend a dividend of 4 per cent on A shares and on first and second issues of B and C shares, absorbing £0501, adding to reserve fund £1000, leaving a balance of £1219 to be carried forward.

In their report the directors express gratification at the result of the years business, which is a reflex of more stable conditions and returning confidence in national affairs. Despite the difficulty of finding profitable employment for deposit funds "the banking department has recorded an increased balance to depositors' credit. Reference is made to the keen competition which exists for first class securities for mortgage advances.

The retiring directors, Messrs. J. A. Warnock and G. Winstonc, arc nominated for re-election.

Past Years Compared. The following table shows the record of the company since its formation:—

Balance-sheet Figures. In ail organisation which accepts public deposits the balance-sheet figures are much more important than those contained in the profit and loss account. The following shows the movements in the principal items of the balance-sheet during the past three years: — LIABILITIES. 1933. 1934. 1933. i: i: A; I'aid capital .. 169,399 166,356 163,284 Deposits 130,307 128,714 131,288 Advances authorised but unpaid 3,500 5,200 1,435 Creditors 19-' 163 478 Reserve 0.000 7,.">00 8,500 Profit and loss 10,002 8,525 8,721 ASSETS. 1933. 1934. 1935. £ £ £ Advances on morlgaKe ... H01..-.." I 259,071 255.438 Govt, stocks . 3,246 21,575 18,998 Hank N.Z. lixed deposit 28,1(1 13,026 10,104 D.'osit and dclicnturi's .... 20,097 19.142 18,072 Bank balance . 3.2*7 3,534 3.920 Total assets 319,490 310,458 313,040

Comments. This company was established on an excellent foundation, for its substantial share capital has always stood as ail extra bulwark of safety to depositors over and above the security of well selected mortgages, in which their funds were largely invested. The record of progress over nine years, though seriously checked by the slump, has never been halted, and the results of the past year seem to indicate a definite recovery from a difficult period. In recent years shareholders have been asked fo accept a lower rate of dividend—7 per cent was paid before the slump—but this is in the general interests of security and this policy has made possible the substantial accretions that have been made to reserves. The liquid position is quite good, for assets that could be quickly realised upon if necessary totai £57,700 — ample cover for all contingencies.

Net Divi- IteCapital. profits. Urmls. serves. Year £ £ £ £ *1027 .... 58.105 2.(104 1,457 547 I'.IL'S l.'(7.558 8.-07 7.11)1 1.807 1020 .... in:{,r»u5 11 ,«»}>«» io,248 ii.4r>:; 1 980 .... 107,922 12.870 11 ,:i:U J!,092 lO.'il .... 171.100 1 2,251 11,735 4,508 10152 .... 171.808 10,071 8,451 7,028 1088 109,89!) 8.074 7,504 8,488 10.'i4 .... 10(i.85f> 7.580 (1.005 0,410 1985 .... 1(1.'!.284 7.802 (!,501 10,719 * Nine mouths onl.v.