Another Good Year For C.B.S.

Press, Volume CX, Issue 32382, 22 August 1970, Page 18

Another Good Year For C.B.S.

The benefits of contractural savings—as emphasised by the National Development Conference—had encouraged several thousand new members to join the Canterbury Terminating Building Society. The chairman (Mr A. C. Felton) said in his report with the annual accounts that members now had accumulated funds of more than $l9 million, and funds outstanding on mortgages were about $2O million. Total funds employed exceeded $3O million. Net profit increased 893,475—0 r 22.8 per cent—to $504,233, after higher expenses. Charges for interest incurred increased considerably, because during the year new deposits exceeded $8 million; total deposits are now more than $ll million. A new record total of $7,042,313 was advanced to members during the year, Mr Felton said, and the requirements of all members for home finance had been satisfied. The directors think that investing those depositors’ funds which are surplus to requirements for mortgage advances in suitable properties would best serve the interests of members, Mr Felton said. They had therefore adopted a policy of procuring properties with room for expansion in areas where branches were established. However, it became obvious that, because of the decision to computerise the society's accounting, that administrative work would be centralised at head office, he said.

This decision, together with Government legislation tax-

ing income from rents, reduced the desirability of holding buildings which were substantially for rental purposes.

The society’s Auckland branch office complex, Canterbury Arcade in Queen Street, had therefore been sold to D.M.S. Mutual Retirement Fund, Ltd, for $2.1 million. The sale was described by the Auckland city valuer as “the biggest sale of its kind in recent years.” Canterbury Arcade will remain the Auckland headquarters of the society. Plans for a new, and larger, head office building, on the

corner of Cashel and Manchester Streets, were now under way, Mr Felton said. For the same reason a 85perch site in the centre of Hamilton had been placed on the market.

The report said it was recognised that to computerise seemed to be the “in thing” these days—a status symbol in the eyes of many executives. But neither board nor management had in any way been influenced by such irresponsible considerations. Once members became used to the new system they would be quick to recognise its value.