BANK OF NEW SOUTH WALES.

Auckland Star, Volume LXVIII, Issue 283, 29 November 1937, Page 4

BANK OF NEW SOUTH WALES.

> INCREASE IN EARNINGS. YEARS PROFITS EXCEED £543,000. An increase of £72.788 in net profits is shown in the accounts of the Bank of New South Walefi for the year ended September 30, which were presented to shareholders in Sydney yesterday. The net profit for the year of £543.242 compares with £470.4.54 for the previous year. A fourth and final quarter's dividend of 6-' a share, in Australian currency, makei the distribution for the year 6 per cent, against 5% per cent in 1936. The report states that 21 new branches, including three in New Zealand, have been opened during the year. The number of branches and agencies now totak 850. Results Compared. A comparison of the bank's result! for three years 16 as follows:— 1!>35. 1936. 1937. £ £ £ Brought forw'd 116.335 119.996 129,500 Net profit 442.661 470,454 543,242 558,996 590,450 672,742 Dividend— Rate p.c. p.a. 5 5J 6 Amount .... 439,000 460.950 526,800 Carried forw'd 119,996 129,500 145,942 Movements in the balance-sheet itemi are as follows:— LIABILITIES. £ t Note circulation . 81,416 Deposits 95.876.747 +6,731,578 Bills payable, etc. 8,322.176 +1,182,525 Capital 8.780,000 Same Reserve 6,150.000 Same P. and L. Account 277.642 +64,532 Contingent 3,657,503. +16,442 ASSETS. £«sli ". 16,646.228 +5,37133 Fundus in London . 2.070i000 +600,000 Treasury bills ... 2,630,006 -4,605,000 Investments 5,225,402 +1,272,795 Due by other • 1,099,874 +371,072 Bills receivable, „ er «- • 7,965,110 +603,215 Reserve Bank N. 2. deposits 373.911 +31,928 Advances 80,577,457 +3.985,209 Premises 2,900,000 +300,000 Customers' liabilibilities 3,657,503 +64,532 Balance-sheet total is £123.145.485, an increase of £7,995,044 on the 1936 figure. Investment*! include Government secunties totalling £5,159,533, an increase of £1,270,000. Higher Prices Reflected. Discussing the accounts, the president of the bank, Sir Thomas Buckland, said the growth of deposits was largely the outcome of the better prices customer* had received for their products. Referring to the expansion of cash items, Sir Thomas Buckland said: "In accordance with banking prudence and in co-operation with the policy of the central bank, our figures show that we have used the improvement to increase the strength and liquidity of our position. It is almost unnecessary for me to remind you of the efforts this bank put forth in the years of difficulty and stress to assist both its own customers and the community at large. As that was the proper policy for those dark days, so is it essen; tial that we should take the first years of prosperous conditions to gain that position of liquidity and strength that would enable us to face with certainty and calm a depression even of the severity of that recently past. I am glad to inform yon that the attainment of this great objective is in sight. "Of the increase of £6.731,578 in deposits.'' said Sir Thomas. "some £3.600,000 has been retained, spread among cash and other more or less liquid items, while our loans and advances have grown to £50.570.n00. This increase is_ the result of a much greater growth of business than would be revealed by a mere comparison of the balance-sheets for this and previous years. Improving conditions have enabled a very large propor-, tion of our customers to lean less heavily upon the bank, creating a tendency for advances to decrease. The growth in our figures, therefore, while giving evidence of the careful policy being pursued by the bank, is a most encouraging evidence oi an active and growing business. "This rate of growth has forced upon us the necessity of providing room for the expasion that is taking nlace in many of our branches, particularly the larger. Apart from the more important extensions «-<? have lieen able to keep pice with the needs of the growing business throughout our brandies as a whole and to maintain our premises in a proper state of efficiency and repair. T" ne increase in the amount standing against bank premises represents the outlay en these new premises less the proportion which we find desirable to write off year U.V year.''