Permanent margins reduced

Press, 15 November 1977, Page 24

Permanent margins reduced

j To compete with other borrowing institutions in the] year to September 30, de-1 posit interest rates offered by] the Permanent Investment] Loan Association of Canter-; bury had to be raised at' short notice, on three occa-i sions. This, as in the last year,] caused a substantial increase! in interest payable on de-| posits, which could not be! inmmediately covered by increased rates on mortgage advances. However, interest on new mortgage advances has been increased to 11 per cent, and

interest on existing mortgage advances will be reviewed and where possible in terms of the mortgage increased to! 11 per cent as soon as possible.

Provided there is no further unexpected increase in deposit interest rates, it is considered that in the next year it should be possible to hold profit at not less than that; for the year under review, I the chairman (Mr P. Wynn-' Williams) says in the annual; report.

• As reported the profit for! the year after taking into ac-| jeount all interest due to the (balance date, was $41,547' which is $749 less than the; 'profit for the preceding year.- ] The amount required to | cover dividend payments for the year is $43,125.

Although the year’s profit falls short of the recommended dividend payment the directors recommend payment of a final dividend of 6 per cent, which, with the interim dividend of 51 per cent makes a total of 11| per cent, which is the same as last year. After payment of this dividend, the balance in the. appropriation account will be 826.179. The total amount advanced during the financial year on | the security of mortgages of 'land was $267,652, and the 'total number of mortgages i was 38. • No mortgages to secure

special advances were executed, and no advances ■ were made on the security' of members’ shares. Deposits received amounted to $2,062,256, and deposits repaid totalled $2,053,585. All securities held by the association are very sound, the directors believe.

Mr C. E. Hoy has given i notice to the board of his intention to seek reelection to the board at the annual meeting, and Mr M. B. Warren who while eligible has given notice that he does! not seek re-election. Mr L. D. Cotterill has tendered his resignation to take effect as from the date of tire annual meeting. The board has invited Mr

iC. E. W. Averill and Mr T. A. Leitch to fill two vacancies thus created. Mr Hoy will be proposed for reelection and Messrs Averill and Leitch will be proposed ■for election to fill the two vacancies. Mr Cotterill has been a director since 1933, and Mr Warren since 1943. Mr Warren was also chairman of directors from 1949 to 1970