B.N.S.W. pays more

Press, 29 October 1977, Page 20

B.N.S.W. pays more

NZPA Sydney The Bank of New South Wales is increasing its annual dividend rate from 29c a share to 30c a share (15 per cent) after group net profit rose 20 per cent to SAusts3M in the ' year to September 30. The strong performance of its hire purchase subsidiary, A.G.C. Ltd, was one of the major reasons behind the j Bank of New South Wales I increasing its profit. A.G.C. outperformed the ibank in contribution to profits on a percentage basis. ! A.G.C. announced total profit of S37M of which $19.7M iis attributed to the bank, as holder of 53 per cent of the shares.

The percentage contribution by A.G.C. rose 33.3 per cent or nearly SSM as against last year. In comparison, the bank and its subsidiaries, contributed $33.2M to the profit, but this was only 13.2 per cent up from the corresponding figure last year of $29.3M. The directors said, as fore-

cast at the half-year, that the rate of increase in profits slowed in the second-half.

This was because usually tight seasonal liquidity was aggravated by the sustained run down in overseas reserves.

This edged up interest rates on deposits and put further pressure on interest margins, already adversely affected by the 10.5 per cent ceiling on overdrafts under $lOO,OOO and the high level of statutory reserve deposits.

The first half consolidated profit was 27.0 million dollars with an easing back to 26.0 million dollars in the second season.

In comparison in the previous year, first half profit was 19.4 million dollars but in the second half it increased to 24.7 million dollars. Over-all revenue increased 20 per cent to 5618.8 M from $515.4M. However, similar to other major companies reporting this year, costs were kept down, an increase of only 16 per cent to $456.0M.

Depreciation rose 32 percent to $17.6M offsetting the decrease in costs. Taxation, including land and other taxes, rose $16.6M to S74M.

This left a trading profit of $71.0M as against $57.5M. How-ever, minority interests of $17.9M to outside shareholders in subsidiary companies reduced profit to proprietors of the bank to $53.0M.