CITY'S THRIFT.

Auckland Star, Volume LXX, Issue 99, 29 April 1939, Page 12

CITY'S THRIFT.

SOUND POSITION. SAVINGS BANK REPORT. INCREASE IN DEPOSITORS Another year of progress i« record' in the 91st report to trustees of t Auckland Savings Bank, which was pr sented yesterday at the annual mee ing of the hoard by the president, 14 Oliver Nicholson. Mr. Nicholson ws re-elected president and Mr. A. Harr deputy-president. "The review of the year's work shcv that good progress has been mad although the increase in funds at depositors' balances is not as high i last year. That there is a substanti, increase in depositors' balances is neve theless gratifying and should prove vei reassuring to our many depositors ar to the citizens of Auckland," states tl report. "This bank has earned throughout i' existence of 91 years a very high repi tation, and to-day its splendid resen makes, the position remarkably soum and guarantees that feeling of confic ence which is so essential to its succes "The total funds this year reach new high level, and are only £37,0 C short of the ten-million mark. This : a large figure, especially when it : realised that the activities are confine to the Auckland metropolitan area, wit a population of approximately 220,00 It can truly be claimed that Aucklan is indeed a thrifty community. Increase in Funds. "The increase in funds is £3*2,00' and it is noteworthy to record that, i the last two years, the accretion ha been £1.000,000. The previous millin increase took three years, whereas til first million was nut reached until tli hank had been in existence for .1 years.'' ;<dd* tlie report. Ihe total number of depositors col linncs to grow, and stands at IKO.SS! I lie increase is and is reflected i all departments except the penny ban! which has been affected by the intrc ' duct ion of the special schools' «avin ! scheme. Besides head office, all tli , eleven branches share in the inereasi , and special mention should be made < the progress of the Otnhuhu brand which reflects the growth of industria i activity in that district." Xew accounts numbering 10.242 wer opened during the year, as compare* with 1ti,007 in the two preceding years Of these accounts 10.900, or 07 per cent weie for sums under £20. Deposit were a record at £.">,297,000, the in crease being £240.000. The gain wai not as large as last year, but the in crease recorded was still a source o: congratulation. The average amount of deposits was £7 4/4, which illus trated how extensive was the «ervic« rendered by the bank. Withdrawals showed an increase of £506,500, and just exceeded £,">.200.000. Compared with the previous year, the greatest average increase in the withdrawals was in amounts under £100. The net gain in deposits for the vear was £83,590, as against an increase last year of £3.">1l .000. while a record amount of £10,.">1<UMM) passed in and out of the bank during the vear on account of depositors, showing "the service and use of the bank. Out of verv small beginnings the bank had grown into one of the most important institular™ J" ♦ V lt7, a " d Wae 01,0 of Empire ® Bavjn £ s banks in the Depositors' Balances. hJ| h l incre ? s ® in depositors' balances had been steady, as, besides the net gam in deposits over withdrawals, interest amounting to £242,410 was added, making a total increase of £326,000, and de P T osit , ors ' balances up to | £8,928,201. In keeping with the continued growth in deposits the bank had steadily persevered with the buildin" up of substantial reserves „ 8 a j, ro per safeguard for t l.e deposits entrusted to its care, and the general reserve fund continued ♦„ exceed 10 per cent of the ''i 1! "J!*/. V\ ,I( T<>*it"rs. This vear £.>2,000 lind been added to the reserve bringing the total rip to £937.."">00. ' "The bank had continued the policy of lending on first mortgage on Cvefully selected freehold securities 'the report added. The advances were £314,000, as compared with £339,000 last ; oa r;. "I I '' tl"* advances, amount in" to £«>4,.>00, were for the erection of new buildings. Repayments nt £217 000 were greater by £50,000. due to the fact that many of the mortgagors were increasingly taking advantage of the concession which enabled them to reduce their mortgages by multiples of £."> on any quarter-day.

Cash in hand and .at bankers had increased by £10.000. The balance was 111 accordance with the trustees' aim to maintain at least 10 per cent of the bank s funds in liquid form. After providing for the usual depreciation, the net profit was £8.~>,f,28. It nni-t be borne in mind, however, that relatively this total was not exceptional, as the net return on the total assets was less than I per cent. leased on the previous year's assessment rate, the bank would be called upon to pay £2.">,02S as income tax. and £401 l would be pavable as social security tax. In addition, it appears that the bank's depositors would be required to pay social security tax on the interest received bv them in respect of their deposits. With the necessary statutory authority granted by the Government, the bank had donated to the metropolitan executive of the Auckland Provincial Centennial Council the sum of £1000 towards the fund for the apropriate celebration of the centennial in the Auckland metropolitan area.

The report and balance sheet were adopted.