MORE DEPOSITS.

Auckland Star, Volume LXIX, Issue 98, 28 April 1938, Page 11

MORE DEPOSITS.

BANK'S PROGRESS.

AUCKLAND INSTITUTION.

YEAR'S RECORD BUSINESS.

i The growth of deposits in the Auckland Savings Bank was the subject of favourable comment liv the retiring president, Mr. A. Harris, at the OOtli annual meeting of trustees yesterday. "The annual increase in depositors' balances shows no abatement," said Mr. Harris. "Tn keeping with the growth of deposits there has been an increase of depositors, who now number 184.2<i0, the increase being 7760. The average amount per account has increased by £1 0/5 to £64 2/3.

Mr. Harris said that thrift clubs had shared in the continued growth and there were 291 of these established in factories, workrooms and business firms of the city and suburbs. The schools' banks department had also demonstrated that the scholars were not unmindful of the advantages of saving for the future. The volume of deposits and withdrawals handled during the year

constituted a record. The sum of £9,760,000 passed over the bank's counters, requiring 1,181;010 entries, the average amount of each transaction being £8 5/3. Over 55 per cent of the deposits made were of sums not exceeding £5, and 90 per cent were under £20. A pleasing feature was the reopening of 1400 previously closed accounts. Reserve Account. The reserve amount of £885.()0<) revealed a sound position and represented 10.2 per cent of the liability to depositors and provident fund. In the matter of investments, the bank had continued the policy of granting first mortgages on freehold property, both in the metropolitan area and in country districts. Advances were £339,740, and the total number of mortgages held had reached 5340. The bank's holding in Government inscribed stock had been adder! to and now exceeded £2,810,000. Holdings in local body debentures had nlso increased and stood at £1,699,000, advances for the year being £91,005. The amount in the cash account at present exceeded the 10 per cent requirement by only a small margin, and revealed that the board had fully invested its available resources, new loans authorised and awaiting completion amounting to £44,000. Liquid R Sources. "May I comment on the excellent position of our liquid resources, as I consider this feature cannot be too highly stressed," continued Mr. Harris. "If we 'add cash and fixed deposit account to Government and local body securities, we find that we have liquid assets amounting to £5.663.900, which equals 65.8 per cent of the liability to depositors. Revenue has increased by £17,000, and net profit, after providing for depreciation, is higher at £69,798. Out of this sum the necessary provision has been made for income tax and a further transfer to the reserve and investment fluctuation account."

I Mr. Harris said that out of 105 trustee i savings banks in Great Britain and Ireland only two had larger deposits than [the Auckland Savings Bank in what was termed the "ordinary" department of their activities. The total assets of the Auckland bank, which now stood at £9,580,000, for the first time exceeded £9,000,000. In 1926 the amount was half the present sum, while in 1906 thi £1.000.000 total was first reached.

Mr. Oliver Nicholson, who has been a member of the board for 20 years and occupied the position of president in 1922-3, was appointed president for the ensuing year, the retiring president, Mr. A. Harries., being appointed, deputypresident.