PROFITS INCREASE SLIGHTLY

Dominion, Volume 32, Issue 54, 26 November 1938, Page 13

PROFITS INCREASE SLIGHTLY

Bank Of New South Wales Year PRESIDENT REVIEWS ACCOUNTS An increase of £4593 in net profit i.-> shown in the accounts of the Bank or Now South Wales for the year ended September 30. 1938. Profit at£.i47„B3u compares with £543,242 in 193< and £470 434 in 1930. The distribution for the year is 24/- a share, equivalent to 0 per cent., the same as for the piecedjug year. In their report presented and adopted at the annual meeting in Sydney yesterday, the directors state that the net profits for the year, after deducting rebate on current bills, interest on deposits, and paying income, land and other taxes, reducing valuation of bank premises, providing for bad and doubtful debts, fluctuations in the value of investment securities, and other contingencies, and including recoveries from debts previously written off as bad, amount to £547.835/1/5; to which is added undivided balance from September 30. 1937, £145.911/17/8, making a total of £693,776/19/1. Interim dividend at the rate of 6/a share Australian currency for tbe quarters ended December 31, 1937, March 31, 1938, and Juno 30, 1938, paid out of tlie year's profits, in terms of clause 105 of deed of settlement, absorbed £395,100. leaving a balance of £298.676/19/1. This the directors recommend to bo dealt with as follows: To quarter’s dividend to September 30, 1935, at the rate of 6/- a share, Australian currency, £131,700; to balance carried forward, £166,976/19/1. The final quarterly dividend is payable at Die head office, Sydney, today and at the branches on receipt of advice.

The brandies and agencies of the Bank of New South Wales now number 80S. During the year 19 new branches were opened and one agency was converted into a branch. Following is a comparison of the bank's results for the last three years:

Record Figures. In his address to shareholders at the ajinual meeting yesterday the president of the bank, Mr. Robert W. Gillespie, paid a tribute to the services rendered in that position by his predecessor, Sir Thomas Buckland. He was elected president of the bank on March .10, 1922, and held office till November 26, 1937, a period of 151 years. The president said they were that day commemorating the 121st year of tlie existence of the bank and the first occasion in its history when the total deposits at the annual balance had exceeded the sum of £100,000,000. This was a record of which they could feel proud. The total of the balance-sheet showed an increase this year of £3,918,000 bringing it to a figure of more than £127,000,000. Deposits totalled £100,257,000, an increase duding the year of £4,381,000. Part of this increase was due to special movements in some of their large accounts, but the increase none the less might be taken as a general indication of the growth of the business of the bank. The movements in bills payable, showing a decrease of £167,000, were negligible, the total on this occasion being £8,154,000. Capital, £8,780.000, and reserve fund, £6,150,000, remained unchanged. On the assets side of the balancesheet cash items totalled £14,376,000, a decrease of £2,270,000 as compared with last year. Total liquid assets stood at £31,449,000; a figure some £4,187,000 less than last year. This movement had been brought about entirely by the assistance that the bank nad been called upon to render to its customers in helping them to meet the effects of the recent widespread drought and the severe falls in the prices of their main exports. The reduced income of the exporting industries did not affect those industries alone, but spread its influence throughout the community. The directors felt that it was the responsibility of the bank to use its resources to mitigate these movements as far as it had the power to do. so.

There had been a reduction of £l,355,000 in the funds invested at short call in London, and of £1,475,000 in Treasury bills. Other items showed small increases, the most important of which was the increase in Government securities of £604,000, bringing the bank’s holding to £5.763,000. Advances stood at £88,740,000, having increased £8,162,000 during the year. This was the measure of the assistance which the bank had been able to render to its customers to offset the effects of Hie extensive drought and the falls in the prices of exports.

Bank premises now stood at £3,150,000, an increase of £250,000 in tbe year. This increase was forced by the necessity of providing adequate accommodation for the expanding business of the bank which now had some 898 branches and agencies, compared with 716 five years ago. Contingent liabilities at £3,341,000 were £315,000 less than last year. The reduction was largely because of lower prices and the tendency to a smaller volume of imports.

1930. 1937. 1938. £ £ £ Net profit . . 470.454 543,242 547,835 Brought fwd. 119,990 129,500 145,942 590,450 672,742 693,777 Dividend — Kate .. 5} p.c. 6 p.c. 6 p.e. Amount . 400,950 520,800 520,800 Carry fwd. 129,500 145,942' 166,977