Profit Higher For Bank Of New South Wales

Press, Volume C, Issue 29680, 25 November 1961, Page 17

Profit Higher For Bank Of New South Wales

The Bank of New South h Wales lifted consolidated net profit by 52 per cent, from £2,554.302 last year to £2,686,520 in the year to September 30, 1961. Dividend, steady at 9 per cent., takes £1,975,000 and the £500,000 transfer to reserve funds is unchanged. Carry forward is £1,390.052 against £1.179,032 last year. Net profit of the Bank of New South Wales Savings Bank rose from £309,749 to £348.851. An unchanged transfer of £250,000 has been made to the reserve fund and carry forward is £295,988 (£197,137 last year). Statutory deposits with central banks are lower. In Australia they are down from £70.9 million to £50.1 million, .While in New Zealand they have; fallen from £15.6 million to £9.6 million. Cash items are £79.1 million against £47.3 million last year. Holdings of Government securities have risen from £120.4 rmlion to £137.8 milion. Loans and advances to customers are £329.5 million against £338.8 million last year. Paid capital is unchanged at £22 million, while reserve funds are £500.000 higher at £l6 million. Deposits and other liabilities including tax provision and other contingencies £13.1 million higher at £711.5 million. Speaking at the annual general meeting in Sydney yesterday, the president (Mr J. Cadwallader) told shareholders Nrw Zeeland experience on the surface, had provided a marked contrast to that of Australia. “Business in New Zealand

has had an exceptionally good year, hurt rising turnovers and lengthening order books symbolised the last brighit days of an over-pro-longed Indian summer." he warned, "rather than a healthy economic development. In spite of licensing adjustments and pleas for restraint, imports into New Zealand have built up well beyond the capacity to pay for them for export income fell and yet again overseas reserves were depleted. "Overseas borrowing has once more become necessary to support even minimum import requirements,” he said. “As in previous years the New Zealand Government has been reluctant to deal comprehensively with the problem of the boom, but has relied only on attempts to curtail bank advances. "Restraint of bank lending is no longer a suitable or adequate method for attacking excessive demand in an economy where for almost 20 years the direction of lending and its capacity for growth have been subject to controls. "Further curtailment of advances now is more likely to lead to forced sales of stocks, and so to stimulate consumption rather than curtail it. It is more important to restrain demand generally in order to live within New Zealand’s resources, and to conserve stocks of imported goods as well as overseas reserves. “To achieve these adjustments. effective fiscal measures for which the Government must take direct responsibility cannot be avoided." said Mr Cadwallader.