BANKING AFFAIRS.

Auckland Star, Volume LXVIII, Issue 127, 31 May 1937, Page 4

BANKING AFFAIRS.

j NATIONAL BANK OF AUSTRALASIA.

I BIG PROFIT INCREASE

The National Bank of Australasia, Limited, Teporte a net profit of £323,626 for the year ended March 31, the highest J since 1930-31. A final dividend at the rate i of 6 per cent per annum is recommended, making 5% per cent for the year, compared with 5% per 1935-36, and 5 per cent for 1934-35. The year's dividend requires £287.500, and £40,000 is transferred to reduction of bank premises account, leaving .'£157.540 to be carried forward, against £159,413 brought forward. Income, land, and note taxes took £89,812. The net profit represents 3.78 per cent on shareholders' funds. ] Year ended March 31. 1936. 1037. I £ £ Net profit 294,404 325,626 Reduction bank premises 30,000 40,000 Dividend, p.c ~>l 5J Dividend, amount 262.50 ii 287,500 Forward 159,413 157,540 LIABILITIES. Capital Ti.000.000 5.000,000 Reserve fund 3,000,000 3,oo<M>oo Exchange adjustment reserve "JOO.OOO 300.000 Notes in circulation.. 47,579 47,564 Bills in circulation . . 623,564 623,881 Deposits 37,769,620 »42,220,20!) Interest accrued and rebate on current bills 215,995 t Due to other banks... 243,006 t ASSETS. Cash items 5,567,068 5,961,565 Commonwealth Treasury bills 2,670,000 3,000,000 Government, municipal, and other securities 1,661,791 2,787,771 Bills and remittances in transit 3,575,414 4,506,810 Notes and bills of other banks 116,775 106,509 Due from other banks 101,229 112,157 Premises 1,194,215 1,217,6711 Bills discounted and other assets 32,446,662 33,060,783 t Not shown separately. •And other accounts.

The balance-sheet is in a somewhat different form from that used in past years. The change has been made firefly because of the provisions of the new Companies Act in New South Wales, which necessitated certain alterations, and, secondly, because it was felt desirable to bring the presentation of some of the items more into line with the practise adopted by mo ?t other Empire banks. Deposits, which comprise* the major portion of the total liabilities, show a substantial increase, only part of which is due to the inclusion under the heading of reserve for contingencies, and several small items previously shown separately. Advances, because of the altered method of presentation, reflect an increase, but probably pure advances have shown a slight diminution. That this assumption is correct is borne out by the bank's quarterly average figures. These movements in deposits and advances are the result of the better prices that have been ruling for primary products, and as the bank does a large proportion of its business with farmers u B raz i ere > » natural that its figures should show participation in the general recovery. A sound liquid position is disclosed, as 8/ of every £ of liabilities to the public is held in mobile form The steady growth of the bank is exemplified by the improvement in total assets, which now stand at almost £51,500,000, the highest figure ever recorded by the bank. Liquid items also reflect the general easing of the banking situation. Cash items and Treasury bills together show an advance of £724,497. Bills receivable in London and remittances in transit are f?i£o& ? m gM- An addition of n.iAWU to Government and other securities suggests that an outlet has been found for funds not immediately required for advances to industry. «^""ea