Chase-N.B.A. grew at faster rate

Press, 24 June 1978, Page 18

Chase-N.B.A. grew at faster rate

Commercial

The growth of ChaseN.B.A. New Zealand Group, Ltd, merchant bank continued at a faster rate in the year to March 31, but profits were only marginally above those of the previous year. 1 Despite tighter monetary conditions, the strong liquid position of the company remains a feature of its activities, and the company continues to have substantial stand-by facilities, he says. “The "high level of interest rates in the iast year resulted from the combined use of monetary measures in conjunction with fiscal measures in the continuing efforts by the authorities to dampen the level of excess consumer demand in the economy,” the chairman (Mr W. D, Barclay) says in the annual report. “The more flexible approach to interest rates now operating will in the years to come serve a most useful function in facilitating a more efficient system for the interchange of funds, and hence a more efficient deployment of resources.

“The granting of permission for the trading banks to accept and endorse commercial bills has achieved a first step towards the creation of a bank bill market

in New Zealand,” Mr Barclay says. This step will contribute materially to New Zealand’s expanding and flexible market in short-dated securities, in line with overseas experience. Chase-N.Z.A, looks forward to the functioning of the intergrated market with considerable interest.

“The formation .of the Merchant Banks Association is another sign of the growing maturity of the industry, and one we fully support,” he says. Dividends amounting to $50,000 were declared during the year, and a similar amount was subcribed by shareholders for new ordinary shares in the company, raising issued capital to $1,050,000 out of shareholders’ funds of $2,154,020. During the year transition to majority ownership by New Zealand interests were completed in compliance with the Government. ChaseN.B.A. Group, Ltd, holds 49 per cent, General Finance, Ltd, 33.2 per cent, and The National Insurance Company of New Zealand, Ltd, 17.8 per cent. In the year to December 31 the group increased net

profit $1217 to $363,819, after providing $3372 less for tax at $294,186. Total income rose 62.5 per cent to $6.5M, but an increase of $2.3M to SS.OM in the cost of funds played a large part in reducing the pre-tax profit $2155 to $658,005. Retained profits rose $313,819 to SI.IM. after deducting $50,000 for dividends. The total assets of the group rose 29.7 per cent to $47.0M in the latest year, compared with 14 per cent in 1976, and 22 per cent in 1975.