C.B.S. profit rises 69.6 per cent

Press, Volume CXV, Issue 33870, 16 June 1975, Page 21

C.B.S. profit rises 69.6 per cent

The net profit of the Canterbury Building Society increased 69.6 . per cent to 51,215,495, despite cost increases of 35.8 per cent, according to the society’s annual report for the year to March 31. |

However, the current (shortage of liquidity in the economy has severely affected the balance of fixed deposits and this, in turn, has meant a reduction in the value of advances to members for home ownership, says the chairman (Mr A. C. Felton),

But despite the reduction in deposits, the society was able to issue 707 mortgages i during the year totalling ! $7,290,590, at an average oi i about $10,300 each. I Last year 1076 mortgages jwere executed to a value of | $9,972,007. Mr Felton says that it is disappointing that the Government has not recognised the need to encourage the activities of building societies, which are the only institutions in New Zealand concentrating almost exclusively on the provision of home finance. This is a reference to the tax exemption differential on interest earnings between savings banks ($3OO a year) and the building societies ($lOO a year).

“Had the Government ■given the societies more coi operation and support, we i could reasonably have expected our advances to members this year to have exceeded the $lO million

I advanced to them over the ten-month accounting year |to March 31, 1974,” he said. Mr Felton said the society was convinced that the contractual savings system was one of the Best methods of controlling current inflationary trends, and it was heartening that savings continued to increase (by more than 40 per cent) despite the economic climate. I The society’s policy was to (actively search for new methods of investment for the benefits of members and as a result, bonus shares had been marketed since April, 1975, offering a return of 5 per cent, withdrawal on seven days notice, and with the opportunity of a ballot for an interest-free loan.