Page 22 Advertisements Column 1

Press, Volume CXI, Issue 32775, 27 November 1971, Page 22

NORTHERN BUILDING SOCIETY SUCCESSFUL YEAR NEW RECORDS ATTAINED The Chairman of the Northern Building Society, Mr G. S. R. Meredith, moving the adoption of the report and accounts for the financial year ending 31 August 1971 at the Annual Meeting on 26 November, said in his address to members: rOn behalf of the Board. It Is my privilege to address you C” and formally move the adoption of the Annual Report fl •*’*' Accounts covering the year ending 31st August, 1971. '■' Again, the Northern has exceeded past performances In IsmL Vall departments, none more so than In new business. , 'I-'''- During the year under review, 83,464 shares were sold M - throughout New Zealand, twice as many as ten years ago. ' W I It is interesting to note that during the next ten years, savings on these new shares will total $2l million over an£ i above savings which will come from older shares. Even If business were only to continue at last year’s level, such increases will happen again next year and every year following. Thus, it can be seen that the Northern will continue to make a substantial contribution to the stability JL. of the country, particularly when it Is realised that the MR. a. s. R. Meredith bulk of these savings are Invested In members' homes. The Society was formed In 1923 and in 48 years has grown ran Into an organisation with assets exceeding $122 million. NEED FOR It would not have been difficult for the Society, by setting HlMTOffilFn RRAWTH higher sales targets In the past, to have sold many more UUHIKUU.cu ununin and promoted greater growth But the pursuit of growth as an end in itself, and at the expense of the strength and stability of the whole financial structure is, of course, imprudent in the extreme. Growth is not progress unless It is controlled and accompanied by the most careful attention to costs and sound budgeting procedure. That the Society's expansion has been regulated and controlled most carefully is demonstrated In succeeding balance sheets by the steadily improving ratio of reserves and residual realised profits to members' savings capital. FURTHER INCREASE There has been another substantial increase in the income runinui inwi-nv ant j recejptB of t b e Society. Savings on members' shares IN ADVANUEd during the year increased by almost $2 million to $l6 million and savings by repayment on loans to $23.5 million. Consequently, the Society has been able to Increase its advances again, nearly $25 million having been lent to members on the security of their homes. This is a figure never before reached by the Northern and firmly establishes our position as the largest Independent homefinancing Institution in New Zealand. BETTER SERVICE TO Members will recall that the Board has adopted a policy diiihi atnviuu iw pf branch expansion into areas where Northern membermclnDtnd ship is strongest. Early in the year under review, a new branch was opened in Whangarei and last month the sixth Northern branch was opened in Napier, to serve the Hawkes Bay area. We have been fortunate to have had the services as agents since 1937 of prominent firms of public accountants in both cities and they wholeheartedly supported the establishment of these branches. They will not only expand Northern service to many thousands of members in the areas, but provide bases for increased new business activity. It is proposed to open a seventh branch In Dunedin early in 1972, again with the full concurrence of our valued agents In that city, and more branches will be established in other major cities over the next few years. This branch expansion programme Is the result of a desire on the part of the Society to keep closer contact with members. It has been assisted by the transfer of ail accounting to Auckland, making use of a computer. With accurate information becoming readily available under the new systems, and through the use of telex communication, each branch will have detailed records of all its local members and will be able to give speedier personal service. VALUABLE WORK i would like to make special mention of and commend nr ArrNTC t * le outstanding efforts of the Society's agency network. W HbLnld Throughout New Zealand, from Kaitaia in the north to Invercargill In the south, the Society has 115 agencies,, thus providing every Important community with a local Northern service. All our agents are, of course, men of the highest Integrity and standing In their respective localities. Agents will always be essential to the Society's continued progress despite the recent policy of establishing branches in selected areas. Because of new methods of recording bank payments, agents may be involved In less recording work, but this will give them more time, like our branches, to concentrate on the most important task of promoting still further the Interests of the Society and those of our members. IMPROVED TERMINATION During the year, the Board, acting on actuarial advice, cnD Ainrn ppniipe took steps to speed up the termination process for older run ULUtn bnUUro groups. Now, this begins at the 25th anniversary of a group's opening when ballots are increased to a frequency of two per month. At the 26th anniversary, the frequency Is increased to six ballots a month until all remaining eligible members have been successful. Because of this decision, 14 groups began termination this year and the life of these older groups will be shortened by at least six months. It is important to note that all the 44 groups already terminated by the Society have finished well within the period named by the Building Societies Act and every continuing member has received his rights to a free of interest ballot loan. Termination of newer groups Is still the subject of actuarial investigation but, even at this stage, It is possible to say that the Society's promise to terminate these groups in 25 years approximately will be achieved. Members will recall that last year, as a result of a Board resolution to set an age limit for Directors, Messrs. Wyber and Stewart retired. This year, two more Directors, Mr H. M. Newton, Vice-Chairman for 16 years end Mr A. W. Nisbet, a member of the Board for 15 years, retired on 31st July. I would like to commend the long and loyal service of these two gentlemen as Directors. In their places, in terms of the Society's Rule 87, Messrs. D. A. Schnauer and R. M. McCracken were appointed Directors. Also in accordance with the Rules, Mr Schnauer and I retired and offered ourselves for re-election. A third nomination was received from Mr C. C. Gotlieb and, consequently, another election has been necessary, the result of which will be announced shortly. I want to take this opportunity of commending the Managing Director, the General Manager, his chief assistants and every one of the office staff and membership organisers, for the splendid service they have rendered during a busy record year. The excellent results of which I have spoken could not have been achieved without the efficiency and fine spirit of co-operation which Is so evident throughout our organisation. Members, too, have generously accepted some inconvenience from the change of accounting and the Board has asked me to express their warm appreciation for this co-operation. Our sincere thanks are also due In full measure to our agents, solicitors, auditors and valuers In all parts of the country for their valuable support and counsel. I would like too, to place on record my personal thanks to my colleagues on the Board for their whole-hearted cooperation in the conduct of the Society's affairs. I now have pleasure in moving the adoption of the Annual Report and audited accounts for the year ended 31st August. 1971. As a result of an election for directors, Messrs G. S. R. MERIDITH and D. A. SCNAUER were elected to the Board.

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