C.B.C. profit rose 18.7 p.c. to $15.8m

Press, Volume CXV, Issue 33959, 27 September 1975, Page 19

C.B.C. profit rose 18.7 p.c. to $15.8m

(Sew Zealand Press Association —Copyright) SYDNEY. The Commonwealth Banking Corporation increased net profit 18.7 per cent to $A 15.8 m in the year to June 30, after a change in the method of allowing for depreciation, the annual report shows.

The bank has deducted de-' preciation on buildings be-i fore arriving at its declared! net profit. In previous years,, the practice was to make an appropriation after the profit was determined. The 1973-74 appropriation for depreciation on buildings was s2.Bm. This has been deducted from that year’s stated net profit of $16.1m to make it comparable with the 1974-75 profit of $15.8m which was after providing $4,060,000 for depreciation. Buildings owned by the corporation were revalued sl76m during the year, but this value was not reflected ■in the group accounts. The trading bank, savings bank, and development bank 1 all contributed to the increase in the profit. The result was “more , favourable” than had seemed possible early in the year, the, , chairman (Professor L. F.; ‘Crisp) said.

’ Assets of the corporation increased $1265m to $9400m. • Lending activities, which -were severely constrained early in the year, expanded after September, after the re-1 iaxation .of monetary con-1 1 trols. ' New loan approvals by the trading bank averaged s2Bm ’ a week in the second half of ' the financial year. The savings bank’s lending , for housing was 78 per cent ’ above the previous year’s re- , cord. I Deposits with, the trading : bank rose $533m to $3128m I on June 30. Depositors’ balances with (the savings bank increased Jsso7m to $4848m. and about :|25 per cent, was in invest-, ment accounts, at present- :: paying 8 per cent. The rest, liof the funds were in the 3.75i - per cent interest deposit ac-, .; counts. - The economic prospects for

Australia in the current financial year were reasonably favourable, Professor j i Crisp said. i . He expected the pattern of ..recovery in 1975-76 to produce a steady growth in nonfann production, a small increase in the volume of farm ; production, and home--1 building to increase. The year now appeared tooffer the prospect of ai I further improvemet in Aus- '■ tralia’s balance of payments. “Altogether, indications suggest that the balance of ; trade will be more favouri able, and the deficit on current account will be lower i than the 1974-75 level,” he 1 said. A new finance company,, •iwhich is jointly owned by the (trading bank and the savings : I bank, is expected to be in >'operation before the end of ■i1975. A provisional name., 1C.8.F.C., Ltd, has been regis-, •itered.