BANKING PROFITS

Dominion, Volume 33, Issue 85, 4 January 1940, Page 4

BANKING PROFITS

Australasian Summary DISTRIBUTION LAST YEAR The net profits and distributions shown in the annual reports published during the past year by the eleven ordinary banks (exclusive of the Comnionwealth Bank of Australia and the Reserve Bank of New Zealand) tran-sacting-business iff Australia and New Zealand, are summarized by the “Australasian Insurance and Banking Record.” The dates of the balance-sheets range from August 31, 1938, to September 30, 1939.

The profits disclosed during the past year show a slight decrease compared with the figures for the previous year. Tlie decrease in net profits is £l-1,177, while dividends are £9688 less at £2,872,713. Both profits and dividends continue on a low level in comparison with the shareholders’ funds and with the scale upon which business is conducted. Exitenses have continued to show a rising tendency which it tippears probable will be displayed further in the coining year. The -total amount of net profits reported and file total amount of dividends distributed by the ordinary banks and the proportion of dividends to profits are compared as foliows; —

♦lncluding Bank of Australasia for 12 months ended- October 15, 1917, and Bank of Queensland for 12 months ended January 31, 1918. In earlier years the profits were included for annual periods ending April and' July respectively. tlneluding The Union Bank of Australia, Limited, for six months ended August 31, 1934, the new balancing date. Tile following .is a comparison of the net profits of each of the ordinary banks shown by the accounts published during the last three years:—

(a) Bank of Australasia to October 12, 1936; October 11, 1937; October 10, 1938. The following is a comparison of dividends declared and the amounts distributed :—■

The amounts shown include dividends on alßelasses of shares, but for the purposes of comparison only the ordinary rate is given. The total amount of appropriations for other purposes than dividends is represented mainly by additions to reserve funds, writing down bank premises, votes to staff funds, etc. A comparison of the appropriations from profits is as follows:

After giving effect to the allocations shown above the reserve funds, inclusive of exchange and currency reserves, now amount to £35,600,000, and undivided profits to £1,834,000, together £37,434,000. Adding paid-up capital £45,464.500, the total shareholders’ funds are £82,989,500, against £82,782,400 at a year ago, and £82.716.800 two years ago. The net profits and dividends for 1939 of the two banks whose business is mainly in New Zealand and tlie remaining nine banks (four of wliieli also transact business in New Zealand) are shown separately as follows : —

The net profit of the general banking department of the Commonwealth Bank of Australia for the year ended June 30, 1939, was £356,570, against £331.300 for 1937-3 S and £35'5,932 for 1936-37. The net profit of the rural credits department for 1938-39 was 131.550, against 132.589 for 1937-38 and £49,51 S for 1936-37. The figures of the Commonwealth Bank are not comparable with those of tlie ordinary banks.

The profit, of the Reserve Bank of New Zealand for the year ended March 31, 1939 was £250,285, against £195.5il for 1937-3 S and £147.142 for 19311-37. The transactions of the Reserve Bank are mainly of a different nature from those of the trading banks, and the results are therefore not comparable.

Net ProProfits. Dividends. portion £ £ p.c. 1J912 . . 2.954,914 1,713,453 57.99 1913 . . 3,212,670 1,787,429 55.61 1914 . . 3,207,507 1,999,646 61.19 1915 . , 3,034,383 2,134,776 70.35 1916 . . 3,003,255 . 3,192.127 2,152,948 71.35 1917 . 2,170,117 67.98 1918* . 3,279,097 2,176,380 66.36 1919 . . 3,570,948 2,295,463 64.17 1920 . . 4,139,992 2,662,056 6-1.31 1921 . . 5,037,758 3,176.333 63.05 1922 . . 4,757,188 3,232,737 67.95 1923 . . 5,109,279 . 5,540,236 3,558,546 69.65 1924 . 3,793,989 68.40 1925 . . 6,032,338 4,335,455 71.87 1920 . . 6,449,565 4.740,064 73.50 1927 . . 6.212,201 78.30 1928 . . 6,40-1,418 5,213,456 81.40 1929 . . 6.359.1S1 5,173,502 81.32 1930 . . 5,908,074 5,038,312 S5.2S 1931 . . 4,404,573 4,104,818 94.55 1932 . . 2.572,771 2,937,758 — 1933 . . 2,085.613 2,541,425 94.63 1934 . . 2,653,840 2,487,988 93.75 1935 . . 12,632,990 f2,482,841 94.30 1930 . . 2,8-10,703 . 2,603,651 91.65 1937 . . 3,115,285 2.807,042 90.10 1938 . . 3,201,900 2,882.401 90.01 1939 . . 3,187,789 2,872,713 90.12

1937. 1038. 1939. Net Profits. £ ‘ . £ Bank of Adel. (Mar.) 61,3X7 65,788 71,121 Bk. of A’sia (a) 300,062 300,501 310,049 Bk. of N.'S.W. (Sept. 30) .. 543,242 547,835 550,876 Bank of N.Z. ('Mar. 31) .. 600,008 583,209 585,941 Com. Bk. of Aus. ((.Tune 30) .. 247,435 262,384 262,910 Com. Bkg. Co. of Sydney (Juno 30) .. 342,041 E„ S. & A. Bk. (June 30) .. 276,127 365,975 377,454 280,594 245,294 Nat. Bk. of Aust. (Mar. 31) .. 325,637 347,401 351,245 Nat. Bk. of N.Z. (iMac. 31) .. 102,838 105.726 106,524 Q’land Nat. Bk. (.lune 30) .. 74,820 79,170 81,692 Union Bank of Aust. (Aug. 31) 240,84$ 254,383 244,683 3,115,285 3.201,006 3,187,789

1938. Ord. Amount. 1039. Ord. Amount. Dividends. Rate. Bank oif Adel. £ 1! a te. £ (Mar.) 5 Bank of A’asia 62,500 ■5i (Oct.) 8 Bl;. o£ N..S.W. 307,000 8 288,000 (Sept. 30) ... 6 Bank of N.Z. 536,800 6 526,800 (Mar. 31) ... 10 Com. Bk. of Aus. 574,219 10 574,219 (.Tunc 30) .... 7.0S Com. Bkg. Co. of 22(5,360 7.0S 226,360 Syd. (June 30) 7 S. & A. Bk. 331,731 7 331,731 (.Tune 30) ... 7 Nat. Bk. of Aust. 168,875 7 163,625 (Mar. 31) ... 6 Nat. Bk. of N.Z. 300,000 G 300,000 (iMar. 31) ... 4$ Q’land Nat. Bk. 80,833 82,083 (June 30) ... 4 J Union Bk. (Aug. 78,750 4 58 80,937 31) 7 235,333 2,882,401 7233,333 2,S72,713

1937. 1938. 1039. * £ 4‘ Dividends 2,807,042 2,882,401 2.872,713 Added to reserve fluid 1'5,000 15,000 15,090 To contingencies reserve 50,000 50.000 30.000 Bank premises . 130,000 160,000 180,000 To complete C ent. f n n <1 (Union) — 20,000 — Grants to oitlcers’ funds, etc. ... 34,000 24,000 19,000 Added to total am’nt of nnapprop’ed protits SO,2-13 50,t>65 71,076 Total 3,115,285 3,201,966’ 3,187,789

Two Nine Banks. Banks. Tot a 1. Shareholders’ r a: Xfunds 13,912,900 GS,995,000 S2.Sih8.5OO Net profits .. («X2,500 2,495,300 3,187.800 Dividends ... (>56,300 2,210,400 2,S» 2,300 % to funds. VP zX‘ /€> Net profits ■Ills 3.62 3 84 Dividends . 4.72 3.21 . o. ib