BANK OF N.Z. CAPITAL

Auckland Star, Volume LXXV, Issue 266, 9 November 1944, Page 3

BANK OF N.Z. CAPITAL

GOVERNSIKNT HOLDS OXE-THIKD With the Bank of New Zealand again in the limelight, the statistics regarding the ownership of the bank may prove interesting. The bank is still the leading financial institution in the Dominion, and the Government owns one-third of the j total share capital of £6,328,125. Capital subscribed and paid up is as follows:— £ Pref. A Shares (N.Z. Govt.) 500,000 G Long-term Mortgage (N.Z. Govt.) .. 234,375 D Long-term Mortgage 468,750 Pref. B Shares (N.Z. Govt.) 1,375,000 Ordinary Shares 3,750,000 Xotal 0,328,125 Apart from the Government holding, much the bigger proportion of the ordinary shares are held in the Dominion. The bank is, therefore, essentially a national concern, and Its operations are most Intimately connected with the fortunes of the Dominion. Though the Government j has special representation on the board of directors, there has always been a tacit understanding which appears to have been observed, that the bank's administration must be entirely free from political interference. When the bank got into difficulties in the slump of 1894, the whole of the share capital was written off as lost, and a third of the remaining liability was also called up and written off as lost. The remaining two-thirds- of the liability were called up at intervals, and the dividends are now paid on these, as well as later issues, but no dividend was paid on £3,874,745 written off, and no dividend on anything for seven and a half years, while for another five years the dividend was only 5 per cent. The long-term mortgage shares were introduced in 1926, increasing the bank's capital from £5,625,000 to £6,328,125. From 1934 to 1940 the bank paid a dividend of 10 per cent on ordinary shares. In 1940 it was reduced to 8 per cent, in 1941 to 71 per cent, and in 1942 to 7 per cent, the present rate.