A.N.Z. bank gets better return

Press, Volume CXIII, Issue 33191, 3 April 1973, Page 18

A.N.Z. bank gets better return

The group net profit of the A.N.Z. Banking Group, Ltd, in New Zealand, for the year to September 30, rose by $632,000, or 82.5 per cent, to sl.4m, to give a return of 8 per cent on funds employed the chief manager for New Zealand (Mr T. M. Williamson) reports.

The profit from trading banks was more than three times higher than in the 197071 year at $618,000. the accounts filed with the Companies Office show. Savings banks returned a net profit of $369,000, which 1 was 16.8 per cent higher than in the previous corresponding peiiod and the profit of A.N.Z. Bank Holdings, Ltd. | which owns the group’s New (Zealand properties, rose by 50 per cent to $413,000. The net profit of the New Zealand group, not dealt with in the New Zealand accounts was $7OOO lower at $106,000. Profit not dealt with in the local accounts represents income from Endeavour Investments (N.Z.), Ltd, and from Development Finance Corporation of New Zealand, and a secured loan to Databank | Systems. Local capital and reserves (increased by sl.6m to $17.8m (during the year and the combined profit represents a return of about 8 per cent compared with 5 per cent in the previous year. The trading bank deposits and other accounts amounted I to $325m at September 30. compared with $235m a year previously. Cash and liquid assets were sl42m (sssm) and loans and other accounts at sl7om were , s3m higher than in 1971. A.N.Z. Savings Bank (N.Z.), Ltd. showed depositors’ balances s9?.m compared with sB6m in 1971 and loans sl6m compared with sllm the pre- ! vious year. The improvement in conditions generally during the second part of the year had helped the results, Mr Wiljliamson says. There had been a substantial increase in deposits during the year hut, because of

gja lack of demand for loans ejand advances, the funds were i- taken up in liquid assets. >i He added that for the large -i money volumes involved the bank traded in fine margins. a Costs were a continued J problem although the increase 3 in 1972 was not as large as j during the previous year, f The accounts for the worldwide activities of he group J were released in January and , showed an increase in net profit of $3.5m or 25.7 per cent at $17.1m. ’ Capital and published re--1 serves totalled $142.6m com- * pared with $137.9m at the • end of the previous year. e The annual dividend rate - was an unchanged 10 per - cent.