National Bank profit 1.9 p.c. of capital

Press, Volume CXII, Issue 32903, 29 April 1972, Page 18

National Bank profit 1.9 p.c. of capital

(New Zealand Press Association)

WELLINGTON, April 28. The National Bank of New Zealand, Ltd, earned a net profit of $361,146 on its New Zealand operations in the year to October 31, including income from investments in other companies. Capital employed in New Zealand at October 31, 1971 was $18,931,697.

The provision for tax of 5569,300 was calculated at the ■ate for overseas companies. The bank’s general maniger (Mr J. Mowbray), said n a supplied statement that :he National Bank, in comnon with others, had been iffected by increases in the :ost of almost everything associated with its operations. Salaries, which comprised ibout three-quarters of its otal operating expenses, had shown a sharp increase. "At the same time bank

: charges have remained virtuI ally unchanged since 1967. “The average interest cost of deposits has increased but the average overdraft rate we can charge is unaltered and thus our margins have been narrowed. “As our chairman explained in our annual report, it is fortunate that by expanding our business in the freer market environment of London, we have been able to maintain our over-all profit at a reasonable level,” Mr Mowbray said.