Record Year For Otago Savings Bank

Press, Volume CV, Issue 31062, 18 May 1966, Page 11

Record Year For Otago Savings Bank

(New Zealand Prese Aseociation) DUNEDIN, May 17. Depositors’ balances increased by more than £l.2m to £13.3m in the Otago Savings Bank, making it a record year.

“This is the most substantial increase recorded, and demonstrates that the citizens appreciate the many services offered by the bank and are making fuller use of those services than ever before,” said the president (Mr J. G. Barnes), In his annual report, he said the bank now covered tnosr of the province. “The results are encouraging and the response of the smaller provincial towns is proving that the people of Otago realise the importance of a provincial savings bank working for the welfare of the whole area,” he said.

At present, at Government I request, the bank's mortgage > lending was restricted, but it > hoped the restrictions soon ■ would be removed and that i in all branches oi activity the ’ trustee banks would be given . freedom to play a maximum role in the economic life of i their communities. 1 For the year to March 31, the bank’s net profit after taxation was £57,270, com- : pared with last years £54,787. ; Mr Barnes said that was ' most satisfactory in view of : the low mortgage rate and the high ratio of free services ' through budget accounts. “The bank’s policy is not

towards the earning of maximum profit, but rather with emphasis on serving the community—the aim is for a reasonable profit consistent with sound administration.'' he said.

By way of interest and other fees the total earnings of the bank rose in the last year by £63,278 to £649,844. The interest was earned on fixed deposits—Government stock, local-body debentures and on mortgages. interest payments to depositors were £381,687, compared with £343.944 previously.

After provision for taxation of £55,737, the trustees set aside £22,000 for payment of grants and transferred £35.270 to the reserve fund which now stands at £714,215. Total investments held by the bank have risen during the year from £ 10.5 m to £12.1m. These are represented by £5.6m in Government stock. £807,937 in local-body debentures, and £4.7m in first mod--1 gages.