BANK'S FINANCES

Auckland Star, Volume LXXII, Issue 284, 1 December 1941, Page 3

BANK'S FINANCES

EFFECT OF WAR CONDITIONS REDUCTIONS IN ADVANCES "The total of the balance-sheet this year is £150,939,000, an increase of £7,036,000 compared with a year ago. This is a very moderate increase and does not justify the statement so frequently made that the banks are accumulating assets on a very large scale, due to wartime finance," said Sir Robert Gillespie, president of the Bank of New South Wales, at the annual meeting in Sydney. "On the liabilities side, deposits, bills payable, etc., show an increase of 17,380,000. These deposits are spread over all the fields in which the bank operates and generally in small amounts. "On the assets side, the total liquid assets have increased by £9,300,000, standing now at £59,220,000. Coin, legal tender notes and cash balances are slightly higher at £14,814,000. Treasury bills, £10,950,000, are lower by £4,805,000. and Government securities, £19,905,000, are higher by £10,973,000. These two figures taken together show an increase on the year of £6,168,000, representing a material contribution made by this bank to assisting war loans. At first sight the return from these investments might appear to be almost clear profit, but as against this we have to place the tendency of our advances to contract and of our rates of expenditure, particularly taxation, to expand. We estimate that this year total taxation will exceed the total paid in dividends.

"It is interesting to note the effect of war conditions and war finance upon our loans and advances." added Sir Robert. "These stand at £84,223.000. Two years ago they were £93,077,000. Thus, during the course of the war, our advances have been reduced by some £8,800,000. The loss of revenue in this item has to be set off against any increased revenue from investments in war loans. The balance of the year's profits. £547,123, is slightly higher than that of last year." In concluding his review, Sir Robert referred to the reduction in the bank's staff caused by enlistments. No fewer than 1460 men, or 29 per cent of the total male staff, had enlisted.