B.N.Z. Finance will not enter new area

Press, Volume CXII, Issue 32967, 13 July 1972, Page 18

B.N.Z. Finance will not enter new area

(New Zealand Press Association*

WELLINGTON, July 12.

B.N.Z. Finance Company, Ltd, does not intend to move out of its ! traditional areas of financing into consumer finance, according to the ! chairman (Mr D. A. F. Crombie) in his annual review.

Consumer financing requirements could reasonably be assumed to be adequately catered for by other lenders, and, given wholesome ectonomic conditions, demand! for the company’s traditional forms of financing was Ikely to continue at a level well suited to the company’s abilities.

Land development and residential buildings were again the firm’s biggest area oflfinancing at the end of the'financial year, followed by transport and contracting, manufacturing industries, commercial and industrial undertakings, and primary industries.

Last year’s rights issuepncreased paid capital by $600,000 and the share 'premium reserve by $300,000. This cut the ratio of share-

holders’ funds to outside borrowings to 5.06:1 by year’s end, compared with 8.05:1 at March 31. 1971.

The level of discounting trade bills related to a wide range of commercial and industrial activity was increased during the year, and B.N.Z. Finance Acceptance, Ltd, a wholly owned subsidiary, increased by $70,000 its investment in freehold industrial and commercial properties. As already announced, net

profit rose bv $131,992 or 44.7 per cent to $426,992. This' was after providing $50,000 more for tax at $345,000 and $3OOO more for depreciation of $9OOO.

The steady 10 per cent dividend will take $lBO,OOO. It was covered by the profit, 2.4 times.

The earning rate on shareholders’ funds, increased bv $1,147,000 to $2,796,000 fell, from 17.9 to 15.3 per cent, and on capital from 24.6 to 23.7 per cent.