Barclays NZ gives warning

Press, 2 May 1988, Page 14

Barclays NZ gives warning

PA Wellington Barclays Bank New Zealand shareholders were warned on Friday to brace themselves for a further loss this year as the bank suffered from the after-effects of the sharemarket crash. It would be very difficult for Barclays to return to profitability this year, the chairman, Mr Bill Shaw, said. That meant it was unlikely there would be a dividend declared, following the pass-

ing of a final dividend in 1987, he told the annual meeting in Wellington. Despite posting a $9.8 million operating profit, writedowns and provisions saw Barclays report a net loss of $11.86M in the year ended December 31, 1987.

Mr Shaw said the result demonstrated the direct affect of the crash, as up to October the bank was ahead of the $6.4M 1986 profit. It expected to face further

provisions for writedowns and losses on loans, as more companies, some that were well established and thought to be free of trouble, faced financial problems. “The effects of the collapse continue to emerge so that recovery to profitability will accordingly take longer than was envisaged,” he said. Mr Shaw urged shareholders to take up the previously announced one-for-two cash issue.