Page 26 Advertisements Column 1

Press, 10 January 1987, Page 26

, New Zealand’s Largest Building Society DIRECTORS’ REPORT market rate. Our policy this year has aimed at the Statutory information required by section 96(2) recovery of these implicit Building Societies Act 1965 is follows. Some mortgagors have expressed their concern at (a) Total amount advanced on security of mortgage slowness to reduce our mortgage — $257,780,000 . > s interest rates. In addition to the factors outlined (b) Number of mortgages advanced under (a) above it should be noted that all mortgages are 5,203 financed from a funding base which has to be (c) Amount advanced on mortgage on land used maintained at competitive market interest for residential purposes — $202,456,000 This means that all mortgages have to have their (d) Number of mortgages advanced under (c) — interest rates adjusted in line with these regular 4,859 f: movements in funding rates. (e) Amount advanced on mortgage on land not included in (c) above — $55,324,000 HIGHLIGHTS (0 Number of mortgages advanced under (e) — In addition to the excellent results achieved in 344 , mortgage lending, the year featured several (g) Amount advanced on security of members developments of great significance to United’s shares — $3,846,000 future. (h) Number of advances on security of shares — <W i n February the Hawkes Bay Mutual Building 1,273 jf ' Society transferred their engagements to United. (i) Amount advanced on security other than -• Vr -V* ’ United’s assets in Hawkes Bay now exceed $4O mortgage or members’ shares — $2,627,000 v v million compared to the combined assets of both (j) Number of advances under (i) — 1 \ societies at the time of the merger of $29 million. (k) Amount of share subscriptions received 'The Board of the Hawkes Bay Mutual Building $1,616,052,000 ■ ...- -fr' ' Society continued to operate until October this year (1) Amount of share subscriptions withdrawn - "• '" to ensure a smooth transition and to safeguard the $1,541,703,000 ’ *’7‘» V i'' ~ \ interests of the members of that Society. It is (m) Amount of term deposits received — especially pleasing to note that our lending in $1,187,522,000 MMMHMHMHMMMWMMMMMk'-■ - Hawkes Bay since the merger has already exceeded (n) Amount of term deposits withdrawn — our target levels. $1,004,312,000 OatlWSSglg-filM ~ The United Realty World network has rapidly (o) Number of mortgage accounts 12 months or expanded and now involves 55 real estate offices more in arrears — 18 throughout the country. Particularly noteworthy (p) Amount of arrears on these mortgages — was the acquisition of the leading Auckland real $248,763 A Wv7 estate firm of Beltons Real Estate Limited. This (q) Amount advanced without security—- ; ‘; - \ United Realty World network is fast becoming an $203,204,000 x - ■' important source of mortgage business. This includes short term advances of j . The United Lifecare programme has maintained a $167,500,000 made, on a day to day basis, to 4 similar momentum and Somervale, Lifecare’s first selected major financial institutions. All these i retirement village, situated at Mt Maunganui is now advances had been repaid at balance date, fully sold and fully operational. The Crestwood (r) Number of advances under (q) — 111 J i I™ village in Titirangi is expected to be completed before the end of this calendar year and is already AUDITORS 11 Uni I partly occupied with some 20% of units sold or The financial accounts for the year ended 30 H F REDMOND i AASSni under offer. Following town planning approval we September 1986 were audited by Deloitte Haskins & Chairman have made rapid progress on the construction of Sells who have indicated their willingness to be Notice of Annual General Meeting Springvale, our third retirement village, situated in reappointed as auditors of the Society. Pakuranga. NOTICE IS HEREBY GIVEN that the Annual General Meeting We have acquired further sites for Lifecare THANKS of the United Building Society will he held in the Society’s retirement villages in the Wellington area and are The Directors wish to express their very sincere Meeting Room, 7th floor, 107 Customhouse Quay, Wellington, currently investigating the feasibility of a Lifecare thanks to the staff and management of the Society on Friday, 30th January 1987 at 10.30 am. village in Nelson. and its subsidiaries for their dedicated efforts and . In July the Society, through NZI Securities, personal contribution to the outstanding results we 1 Receive and adopt the Directors’ Report, the Financial arranged a US $3O million, six year, unsecured, have achieved this year. Statement and Auditors’ Report for the twelve months ended multi-currency revolving note issuance facility. We also extend a very warm thank you to the 30 September 1986. Funds drawn under this facility have been used to Society’s members and depositors. Their loyal and 2. Election of Directors. In accordance with the rules, Mr R. provide low interest rate offshore finance in a continued support have laid the foundation for our A. Ayton and Mr J. F. Cuttance retire and, being eligible, currency nominated by the borrower, with the latter present and future success. offer themselves for re-election. assuming all exchange rate risks. This development I personally thank my fellow directors for their 3. Remuneration of Directors. signals a new era for the Society in its provision of concern and commitment to the strategic 4. Appointment of Auditors. increasingly sophisticated financial products and development of United. In doing so I wish to pay a 5. General Business. services. This large offshore facility has provided the special tribute to the work of our former Chairman, By Order of the Boaa?d impetus for a rapid expansion of our commercial Mr D A Schnauer of Auckland and Mr G H Sumpter Wellington 22 December 1986. J.D. Barber, Secretary. lending activities. of Wellington. The past and continuing success of the United group testifies to the skills and business to the Building Societies to meeting on his or her behatt ProxiS Act and the Reserve Bank Act have not eventuated mention of Mr Ita.Mershm skills must be deposited at the Registered Office of the Society no this year. which have played such a key role, especially later than 10.30 am., Wednesday, 28 January 1987. The Government s legislative programme has through the immediate post merger period in 1982. become extremely busy, however the amendments to I wish them both long and very happy retirements. A form of Proxy is available from any branch of the Society. t^e R eserve g an k Act are now before the House. I also wish to formally welcome Mr R A Ayton and The address of the Registered Office of the Society is 107 c fo an g es w j|i permit the issuing of new banking Mr J F Cuttance to the Board. Customhouse Quay, Wellington, P.O. Box 1384, Wellington. licences. We are confident that the changes to the On behalf of the Board I congratulate and thank — Building Society legislation will be enacted early in the Society’s Managing Director, Mr Colin Jenkins, the new year. for his dedicated leadership in these demanding < Tour Directors are pleased to present the this year; a fall of nearly 13%. This result reflects the times, report and financial accounts for the very close liaison between the Board and the OUTLOOK Finally I acknowledge the support andl coi vear ended 30 September 1986. Society’s management in terms of maintaining The Society s diversification programme and the operation of the Society s auditors, solicitors. The financial scene has been more settled this year effective cost control at all times. excellent performance in mortgage lending over the receiving agents and external suppliers who have as United and other financial institutions quickly The continuation of our conservative accounting past year has created a very strong base and the continued to provide United with their first class adapted to the new deregulated environment and policies whereby investments are revalued according Society is exceptionally well positioned to continue service. the changes in the Government’s monetary policy. to current market values has resulted in a $6.425 its growth and development in the face of increased It has been a year of consolidation for the Society million upward adjustment. Consequently our competition from domestic and foreign financial n , ?IA ., riX Tn in which the Board concentrated on the further reserves have expanded to a level of $61,933 million, institutions. HF REDMOND development of the strategic directions outlined in a 62% increase and now represent 6% of our total Next year United will launch its own VISA card Chairman last year’s report. assets. which will have a number of unique and competitive The excellent financial results obtained are a clear features compared to other VISA cards. vindication of the direction and management of the POLICIES A major new development will be the entry of Society and its subsidiary operations. Two key policies have formed the basis of the United into the sunrise industry of personal United became the first building society in New excellent results outlined above. financial planning. In overseas financial markets Zealand’s history to achieve an asset base in excess First was the Board’s decision in November 1985 personal financial planning services have been the of a billion dollars. The Society’s total assets to widen the access to mortgage finance to members most rapidly growing sector of the financial market increased by 39% to a level in excess of $1,024 of the general public. We believe that in the place. . million and we now enjoy a 47% market share of increasingly free market environment the Society Worldwide financial deregulation has led to a total building society advances. The key to this needs rapid growth in order to remain a significant dramatic increase m the range and quality of rapid asset growth has been the emphasis placed on force in the mortgage and financial markets. financial services and products available. At the same expanding United’s mortgage business. In this light Restricting our lending products to our existing time the investing public have become more the 64% increase in mortgage advances to a level of customer base would have acted as a severe selective and more sophisticated in terms of the $258 million is a particularly satisfying result. constraint on this objective. structure of their financial and asset portfolios to The net profit before taxation for the Society Second, as indicated in last year’s report, the best meet their lifetime personal needs. increased by 174% to a level of $16,567 milion. The Board had consciously delayed the passing on of There is considerable scope and potential for the consolidated net profit is $16,153 million and the increases in mortgage interest rates due to our development of high quality personal financial difference reflects the development costs of our concern for the financial situation of our existing planning services in the deregulated New Zealand major subsidiaries United Realty World and United mortgagors. This resulted in an erosion of our gross market and the Society is aiming to be a prime Lifecare Limited, and the bottom line contributions margins and a lowered gross contribution. mover ih the provision of these services. from Allied Mortgage Guarantee Co Ltd and Beltons This year we have timed our downward mortgage B K I Real Estate Limited. rate reviews in order to restore our gross margins DIRECTORS MII ■ ■ II I strategic viewpoint the most important and increase our profitability. In last year s rapid In accordance with Rule 34, Mr R A Ayton and Mr achievement has been the lowering of the overhead escalation of interest rates our delays meant that J F Cuttance retire from the Board and, being cost to total assets ratio from 3.2% last year to 2.76% existing mortgagors effectively received a subsidy eligible, offer themselves for re-election. I ovimjww omvkii |