LESS PROFIT.

Auckland Star, Volume LXIX, Issue 127, 1 June 1938, Page 8

LESS PROFIT.

SAME DIVIDENDS. I BANK OF NEW ZEALAND. LAST YEAR'S OPERATIONS. Lower net profits, at £583.209, were earned by the Bank of Xew Zealand for the trading year ended March 31. These figures show a drop of £16.799 compared with those for the previous 12 months, and yet are above the average of recent years. The directors recommend payment of the usual dividends, and as these will absorb £574,218 there is not a great deal left for additions to reserves. Gross profits at £1,672,821 are up £66,479, but expenses under all headings show increases and account for the reduction in the net returns. Rates and taxes are higher by over £56,000, while salaries and allowances are up nearly £10,000. In the balance-sheet the most notable change is an increase in advances by nearly £3,000,000, whifh is in accord t with the general position shown by the various trading banks doing business in the Dominion over the past 12 months. Money at call and bills receivable in London at £6,777,000 is £1.684,000 lower. Directors' Report. The following report by the directors was received to-day by Press Association message from Wellington:— Profits for the year ended March 31, after providing for expenses of management and for »11 bad and doubtful debts and other contingencies and after making provision for the annual donation to the provident fund, were £583,209 5/11, to which has to be added the balance brought forward from last year, £364,889 17/3, giving a total of £948.099 3/2, from which lias been paid a dividend on preference A shares £50,000, an interim dividend on C longterm mortgage shares £7031 5/, on D long-term mortgage shares £17,578 2/6, on preference B shares £31,250, on ordinary shares £187,500, totalling £293,359 7/6, leaving available for distribution £654,739 15/8. This the direc-

tors propose should be disposed of as follows:—A dividend on <3 long-term mortgage shares at 0 per cent per annum £7031 5/. on D long-term mortgage shares at 71 per cent per annum £17,578 2/6, on preference B shares (making £100.000 for the year) £68,750, at rate of 5 per cent on ordinary shares (making £375.000 for the year, equal to 10 per cent) £187,500, leaving a balance to be carried forward of £373,880 8/2, total £654,739 15/8, the dividends to bo paid in New Zealand currency. New Agencies Opened. During the year agencies have been opened at Clranity, Kerikori, Manure wa, Oaraani Xorth, Okaihau, Pokeno. Riecarton. Town Hall (Dunedin) and Upper Queen Street, Auckland. The Waikouaiti branch has been converted into an agency, and St. Helier's Bay agency has been closed. Profit and Loss Account. Net profits with total dividends paid and additions to reserves in late years have been as follow: —

Balance-sheet Changes. The following table shows the main items in the latest balance-sheet, comparison with the previous year also being shown: — LIABILITIES.

Additions Not to Profits. Dividends. Reserves. 102S 841.S7S 124,175 1!>2» .... !»13.».-i4 S14.S!>3 275.000 lorso .... <»4s.r.34 si7.n«;s 125.000 lt>31 .... 845.S13 S17.0IIS 25.000 1»32 587.023 S17 PCS — 1033 504.270 t!44.530 — 1!>34 573.032 574.2JS — 1*.»35 .... 57N.74S 574 21S — 1!>3R 5U5.1S2 574,218 1!»37 .... COO.008 574 21S — 193S 583.209 574.21 S —

Compared with March 31, March 31, 193S. 1937. Capital paid ... B.328.125 Same Reserve fund . . 3.575.Ituo Same Debenture stock . GOT 050 Same Notes in circulation 027 1 Deposits 34,731.532 —0O4 580 Other bank bal. . r,1.4(>3 —to!s53 Bills payable, etc. 4.582.271 + 497.465 Reserve for taxes 426.000 Same I, o n d o- n office acceptances . . 61.264 —1 17G Transfers Ion; *t*io term mortjrasre 300.113 +27.03-1 Balance profit & 654.740 + 8.991 ASSETS. Coin. Reserve Bk. notes & deposits 6.103 379 1 S°5 S9"> Govt, notes .... 150.867 '-CrVst Other Bk. balances 15-730 Wo72 Money at call & *•• insecurities i n London n..-,54,51S —1.3G7.902 Bills receivable in London 1.223.430 —115.495 >.a. Government securities .... 5.390.347 "53 Aust. Government securltie* 2.239,634 —756.267 Local body gecu- „ rities 275.576 —59 440 Branch remittances in transit ' 1,940.743 -1-356 004 Bills discounted. 014 198 —187 ~>31 Other advances . 25,803.124 + 2.040/JU3 Property and premises 733.938 J-48 977 Customers' acc:--p-T tances 01.204 —1 176 Long term niort. 1.310.175 Same Total assets .. 51.S30.227 +413,103