BANK OF NEW ZEALAND

Dominion, Volume 14, Issue 219, 10 June 1921, Page 6

BANK OF NEW ZEALAND

REPORT & BALANCE-SHEET DETAILS OF YEAR’S WORK THE DIVIDENDS PROPOSED The report and balance-sheet of the directors of the Bank of New Zealand fclr tho year ended March 31 last, states that the profits, after providing for expenses of management, all bad and doubtful debts and other contingencies, and after making provision for the annual donation to the Provident Fund, also for bonus to staff, are £848,455 ss. sd. From this has to be deducted: Interest on guaranteed stock, £21,199 10s. lid., leaving £827,255 14s. 6d.; of this sum the directors have allocated in reduction of bank premises and furniture £50,000, leaving balance of profit for the year £777,255 14s. 6d.; to which has to he added balance brought forward from last year, £146,520 2s. 3d., making in all £923,775 IGs. 9d.; from which there has been paid interim dividend on A and B preference shares £65,625, and ordinary shares £131,250, a total of £190,875. There is thus left available for distribution £726,900 IGs. 9d. This the directors propose should be disposed of as follows:—Dividend on preference A shares, making £.50,000 for the year, equal to 2s. per share, £6250; dividend on preference B shares, making £62,506 for the year, equal to 2s. per share, £40,625; dividend on ordinary shares, making £300,000 for the year, equal to 2s. Bd. per share, £168,7.50; transfer to reserve fund, £150,000 (making reserve fund £1,525,000), leaving balance to be carried forward £3.61,275 16s. 9d. , During the year the agencies at Coromandel and Otorohanga have been made daily branches. An agenev has been opened at Wellsford, and the agencies at Otnk! Railway and Matata have been closed.

BALANCE SHEET LIABILITIES AND ASSETS. Liabilities.—Capital: 4 per cent, guaranteed stock. £529,988 10s. 6d.; preference, "A” fully paid £1 shares issued to tho'New Zealand Government, £500,000; preference “B” fully paid £1 shares issued to the New Zealand Government, £625,000; ordinary shares of £l, fully paid, £2,250.000—£3.904.988 10s. 6d. Reserve Fund, £1,375,000; notes in circulation, £4,741,492 10s.; deposits, £34,475,655 3s. 3d.; bills payable amt other liabilities (including provision for doubtful debts and for depreciation in investment securities, also contingencies), £4,116,573 165.; reserve for taxes, £426.000; balance of profit, and loss, £726,900 16s. 9d. Total, £49’.766.610 16s. 6d.

Assets. —Coin and cash balances at bankers, £5.925,791 Os. lid. Government Notes —Commonwealth, Filia-n. and Samoan Administration, £190,996 ss. Notes of other banks (legal tender), £564,061 10s. Bullion on hand and in transit, £4889 13s. 3d. Money at. call and short notice. Government securities and other securities in London, £6.114,822 15s. Id.; and bills receivable in Tendon and in transit, £2,209,533 Ils.— £8.324,356 6s. Id. Investments in tho Dominion. —New Zealand Government securities. £3.225,987 10s.; and municipal securities. £287,114 10s. —£3,513,102. Australian Government securities. £399,316 1 3s. 4<l. Bills discounted, £2,780,753 15s. 6d. Other advances and securities and debts duo to the bank, £27.725,874 17s. Id. Landed property, premises, etc., £337,468 15s. 4d. Total, £49,766.610 16s. Gd. PROFIT AND LOSS.

Dividend on £500,000 “A” preference shares £20,000, dividend ou £250,000 “B” preference shares £18,750, bonus on B preference shares £lO,OOO, dividend on ordinary share capital £75,000. bonus on ordinary share capital £40,000, amount transferred to reserve fund £150,000; in all £313,750; with balance carried down £146,520 2s. 3d., totalling £400,270 2s. 3d. Twelve months’ interest on guaranteed stock £21,199 10s. lid. Amount written off bank prenffses and furniture £50,000. Interim dividend paid December 11, 1920: On “A" preference shares (£500,000) £43,750, on “B” preference shares (£250,000) £21,875, on ordinary shares (£1,500,000) £131,250, in all £196 875; the balance being net profit for year £777,255 14s. 6d„ to which is added tho amount brought forward from last yea® £146,520 2s. 3d. makn/g £923,775,We&s interim dividend paid, as above, £196,875—£726,900 16s. 9d.; to-nl-ling £994,975 7s. Bd. On the other side, the balance at March 31, 1920, was £460,270 2s. 3d., and the balance now brought down is £146.520 2s. 3d. Profits for year ended Marell 31, incliKling recoveries, and alter payment of and provision for, all interest due and accrued on deposits, provision tor bad nnd doubtful debts, and other contingencies, for tho annual donation to the Provident Fund, also for oonus to staff, amount to £1,844,017 25.-2 d., loss salaries and allowances at head omets and 211 branches and agencies £355,1 <4 Ils. 5d directors’ remuneration, including London board £6650, general expenses, including rent, stationery, telegrams, postages, travelling, repairs to promises, etc £145,905 4s. lid., audit expenses account £2737 os. Hd., rate* and taxes 19s. 6d., in all <£990,56L 16s. 9d.» leaving net profit £848,455 ss. 5d., making the total £994.975 7s. Bd. RESERVE FUND. The balance-sheet shows the amount transferred to capital account at December 31 1920, in terms of section 4 ot tho Bank of Nev/Zealand Act be X 1,125,000, nnd the balance <£1,0..0,000, total £2,650,000, including tho amount ot £l5O 000 to be added from profits from the year ended March 31, 1921.