The Press. TUESDAY, JUNE 11, 1907. THE BANK OF NEW ZEALAND.

Press, Volume LXIII, Issue 12827, 11 June 1907, Page 6

The Press. TUESDAY, JUNE 11, 1907. THE BANK OF NEW ZEALAND.

Tho balance-sheet of th© Bank of New Zealand for tho yeair ending 31st, March last makes pleasant reading, not only for tho shareholders, but also for ho colony at largo seeing that tho latter is so much inrtexestc- in the Bank's welfare. The prosperous times which we air© enjoying are reflected' in the Bank's profits, whicli are higher than in any previous year. The gross profits,- before deducting salaries and other e-rpm-os, amount to £563,688„j_tt improvement of £34,671 as compared with last year. The expenses of maoagemonit (£212,807) were about £14,000 more than last year, and this year's net profits amount to £8.0,880, which is about £.0,000 better than last year's irecorc.. _ After paying £40,000 interest on. the guaranteestock and writing off about the sarao amount from bank premises and furniture as last year, there is a balance of. profit for tho year amounting to £294,880, from which his been paid an interim dividend nt tho rato of 5 per oent. on the preference and ordinary shares respectively,. making £50,000 ••in all, and -paving available ior distribution. £244,880. The di-i-cctors propose to pay another fi per cent, on tbo ordinary share© and ,2| per cent, on the preference, ma-king an additional £37,500. This leaves them £207,380 to deal with. Tine year they are in the happy position of not having to make any further payment to tho Assets Board (which laab year swallowed up upwards oi £224,000 of tho profits) so they are enabled to add no less than £168,705 to the Reservo Fund, which now stands at the very respectable, sum of a quarter of a .million sterling, snd after granting £7000 to the Officers' Provident Fund, to carry forward £31,6/6 to next year's balance sheet. t,e hope t_st the Board will continue on the prudent coarse ol limiting the dividend to 10 per cent. an tho ordinary and 7\ per oent. on the preference shares, meanwhile strengthening the position of the Bank by increasing the reserve. It is perhaps too much to hope that each succeeding balance-sheet will be quite as rosy as th. ptesent. It has been

hinted that a farther increase in salaries must be provided for, and should there bo a eet-back in our commercial prosperity the Bank would speedily feel its effect. Nevertheless, unless a period of depression should set in there seems a very fair prospect of tho Bank being able to build up a reserve fund equal to the amount of the Stato guaranteed stock by the timo tho latter becomes due.. If so, there is no reason why this stock should not bo paid off, end the Bank would then, except for th. half-million preference charts, b© free from any direct liability to th© State. When tliat period arrives no doubt it will be necessary once more to revise its statutory powers, and we hope that such revision may be final. Referring to tho statement of tho assets and liabilities of tho Bank wo observe the notes in circulation show an increase of about £89,000 as compared with last year, and deposits have increased by nearly half a million- sterling. Bills discounted show a diminution of about £124,147, but other advances and securities and debts due to th© Bank have increased by no less than £1X19,088. Colonial Government securities held by tho.Bank have increased from £892,040 to £905,8-10. The Bank has evidently been doing a much larger business during the year, nnd it is not necessary, w© hope, to urgo on tho Board the necessity of prudence in making advances at a timo when thero ia great temptation, especially on tho port of borrowers, to take a too optimistic view in regard to tho future.