DIVIDENDS LOWER

Dominion, Volume 24, Issue 265, 5 August 1931, Page 12

DIVIDENDS LOWER

Commercial Bank of Australia DECLINE IN NET PROFIT Commercial Bank of Australia pays its final ordinary dividend at the rate of 10 per cent, per annum, making Hi per cent, for the year ended June 30. For the previous year the dividend was 15 per cent. Profit was £308,449, a reduction of £81.392, Preference dividend of 4 per cent, requires £84,694; ordinary dividend HU per cent.) absorbs £220,569, and a sum of £13,399 Is carried from profits to teserve fund. Premium of £76.600 received In new shares Is also transferred to reserve fund, which Is thus raised to £2,250.000. The appropriations reduce the amount brought forward from £95,548 to £65.335, which Is carried forward. Year ended June 30.

new shares. The balance-sheet shows heavy reductions in deposits and advances. The former are down by £1,311,450, and the la J-, ter . by £1,416,674. Cash Items In Australia have been greatly strengthened, coin, bullion. Australian notes, and cash at bankers Increasing by £1,177,126. to £4,122.036. On the other hand, while money at short call In London nnd British Treasury bills have declined by £2,692.500. there Is a new Item. “British war loan stock and Commonwealth Treasury bills in London, amounting in all to £453,332. Another new Item Is '‘short-dated Commonwealth Treasury bills In Australia,” of which the bank bolds £1.300.000. The bank has also added £147,856 to Its holding of Government and municipal securities. Bills payable have been reduced by £472,913, and bills receivable by £777,808. AUSTRALIAN OF COMMERCE Heavy Fall in Net Profit Australian Bank of Commerce. Ltdshows a heavy decline in net profit for the year ended June 30. the amount at £84,904. after providing £67.642 for land and Income taxes, being £95,988’ below that of 1920-30. Interim dividend was 2} per cent, and the final distribution was 14 per cent., the total of 4 per cent, representing a reduction of 3 per cent, on the year. The amount of the dividend is £83.320. or £3416 more than the net profit. No transfer to reserve is recommended, and the balance to be carried forward is £26,387. against £29,802 brought Into the accounts.

Balance-sheet figures show considerable contraction. With a shrinkage of £2,16-,-573 in deposits, there Is a fall of £1.374,462 in bills discounted, loans, and advances. While cash balances in Australia, comprising coin and bullion. Australian notes, and cash with the Commonwealth Bank, have strengthened by £162,089, cash in London Is £173,825 lower. The holding of Government and municipal .securities has lessened by £288,691. There are decreases of £634,802 in bills receivable, and of £180.993 in balances due by other banks. Accompanying the two latter changes are a reduction of £229,237 in bills in circulation; and a decrease of £60,448 in amounts due to other banks. COMMERCIAL BANKING CO. Big Shrinkage in Profit Commercial Banking Company of Sydney, in Its report for the year ended June 30 discloses net profits of £441,815, a fall of £195,804 compared with-the previous year. Interim dividend was at the rate of 9 per cent, per annum. Final dividend Is at the rate of 8 per cent, per annum, making 8} per cent, for the year, which compares with 16 per cent, for many years pre-' vlously. Nothing is carried to reserve or to premises account, but the balance of profit, £38.999, added to the amount brought forward, £85,226, gives £124,225 to be carried forward. Taking balance-sheet Items, it Is found that deposits are lower by £5.383.217. As the chairman explained at the meetinc: of shareholders, nearly £4,000,000 of this decrease is accounted for by a reduction of amounts held for Governments and Government Savings Banks. Trade conditions account for the remainder of the contraction. With the fall in deposits, advances and discounts must also be reduced, and so a reduction of £3.957,007 is found In these items. That the fall has not been so great as in the case of deposits is due largely to Government stocks having been liquefied to the amount of £1,087,501. Cash Items are less by £376.587. Money at short call in London shows a falling away of £635,000. but a new Item appears of Commonwealth Treasury bills amounting to £1,550,000, Bills of the bank In circulation are £516,914 less than a year ago, while bills receivable have diminished by £1,288,618. Amounts due by other banks have decreased by £141,378. Year ended June 30.

At the annual meeting last week, the chairman of directors. Mr. G. J. Cohen, moving the adoption of the report pointed out analysing the balance-sheet, that nald_ Sn capital of £4,739.000 the reserve fund of £4 300.000. and the balance of profit and ?oss account £124.000 to he.cnrrW forward, amounting In all to £0.103 000. was rather more than £1 for <wn ot ' A bllltles. Banking business. Mr. Cohen said, was so Intimately related to world’s trade and commerce that ft must Inevitably be affected by any causes which prejudicially affected production and distribution. Hence, though the business ot the bank Pad been relatively well maintained, the balancesheet showed contraction when compared with that of a year previous.

1930. £ 389,841 22,851 20,000 1931. £ 308.449 13.399 20.000 Not profit Reserve fund Reduction of bank premises '. Dividend, 4 p.c. pref. shares 84.694 84.694 Dividend, ord., p.c. 15 lit Dividend, ord. amt. 260,937 220.589 Carry forward 95,548 65,335 LiabilitiesCapital— Preference 2,117,350 2,117,350 Ordinary 1,923,399 12,160,000 2.000.000 Reserve fund ...... $2,250,000 Notes in circulation 230.137 184,032 Bills payable 1,634,023 1.161,110 Deposits 22,165,235 20,853.785 Due to other banks 1,654 641 Assets — 4,122,036 Cash Items 2.944.910 Money in London . 2,817,500 125,000 Stocks and bills in 453.332 London — Treasury bills in Australia 1,300,000 Oovt. and municipal stocks 762,636 910.492 Bills receivable In 2,022,560 1,244,752 London Notes and bills at other banks 113,209 87.555 Due from other 9Q.07G 147.287 Advances Premises • • 20,677,514 1,054,910 1.107,895 . {Includes £237,149 premium on new shares, includes £76,600 premium on

Tear ended June 30. 1030. £ 1931. £ Net profits 180.692 81.904 To reserve fund ... 25,000 —— Dividend, p.c., p.a. . • Dividend, amount . 7 4 15-1,580 88.320 Carried forward ... Liabilities— 29,802 20.387 Capital 2,208,000 2,208.000 Reserve fund 1,111,880 1,111.880 Deposits, etc 13,353.280 11,190.707 Bills, etc, payable . Balance due to other 808.100 578,002 banks Assets— 177,007 , 110,610 Coin and bullion ... fl, 814,405 71,076,584 Australian notes ... t \ t Cash in London ... Govt, and municipal 229,622 4o,707 stocks Balances due by 740,182 460,401 other banks ...... Bills receivable in 300,480 209,400 London 1,382,557 747.755 Advances 12,795,307 11,420,8-15 Bank premises 403,855 404,705 flncludes Australian notes, with coin and bullion. tlncluded

£ ■ 1930. 637,019 £ 1931. 441,815 Dividend, p.c 10 8i Dividend, amount . 473.901 402.810 100.000 I ■■ Premises account ... Forward ......... 50.000 85,226 124,223 Liabilities— Capital paid up .... 4,739.012 4,739.012 Iteserve fund 4,200 000 4,300.000 14.012 13.807 Bills 1,488,019 971.105 Deposits, etc Assets — Coin, etc, and cash at 49,402,322 44,014.105 7,829237 8.205.824 Monev at short call . British Treasury 1,335,000 700.000 bills ■ C’wealth K Treasury 1.550.000 Govt, stocks 6.106.619 5,019.118 Bills receivable, etc 3,002,928 1,774,308 Notes and bills of other banks Advances „ Bank premises 410.891 30.847.980 1,310,295 209,513 35.890.979 1.318.720