Bank of New Zealand.

Daily Telegraph (Napier), Issue 5204, 26 April 1888, Page 3

Bank of New Zealand.

HALF-YEARLY MEETING.

[per press association.]

Auckland, This day.

At the Dank of New Zealand's half-yearly

meet ing to-day tho directors' report was rend us follows:—The result of the halfyear's operation!; is us follows: Net pr/ifit, without appropriation for bad and doubtful debts, £54,756 0s Id; to which has to be

lidded the balance from the half-year ended 30th September, ISS7, £0106 Ss2d ; making a total of £60,861 8s 3d, which it is proposed

to appropriate as follows : To payment of dividend, at the rate of 7 per cent, per annum, £35.000; balance carried forward, £2. r >,SGI 8s 3d ; total, £60,561 8s 3d. SirF. Whitaker, in moving" tho adoption of the report, expressed regret at Mr Williamson's

death. Referring to the balance-sheet, under the head of deposits and liabilities,

he remarked there was a decrease of £900,000, but this was almost entirely due to items coming under tho dtsignation of other liabilities, and were of a casual charactor and without significance. In the deposits proper there wns a decrease of £01,000, which, upou tho total of over ten millions, was quite immaterial. The items coin and cash balances at bankers, and money at

short call at London, showed the respectable total of £2,400,000. This was £800,000 less than at the last balance, when the amount was exceptionally high. The reduction was in a large measure accounted for by an increase of five hundred thousand in bills and securitiesbeldmLondon. Coming to the item of profit, which, apart; from the deduction for bad debts, amounted to £51,000, that was by no means so satisfactory a figuro as the shareholders had been used to. The

shrinkage in profits of late was an indication of the extent to which the Bank's earning power was crippled by tho accumulation of advances and securities, from which interest could not properly be taken to profit, and which, nevertheless, the directors felt reluctant to realise at the serious sacrifice which would be entailed in the present depressed state of values. It was, at

the same time, satisfactory that, notwithstanding this burden, and notwithstanding the unprofitable condition of tho general business in the colony, the Bank had been able to earn an amount equal to over ten per cent, on the Bank's capital; all tho more, that the bad debts properly pertaining to tho half-year were quite trifling, and would not appreciably affect the result. How to deal with this profit had been tho occasion of much perplexity and anxious consideration, because of the strict valuation of assets, and an equally strict compliance with the terms of the deed of settlement, the directors would not feel warranted iv dividing it with an

assurance that they had first provided for nil bud and doubtful debts; nevertheless, they

had come to the conclusion that because of the exceptional development of losses arising out of tho conditions inherited by the halfyear, and because of tho depression, which, he hoped, would not much longer continue, the shareholders should not be entirely deprived for two half-years iv succession of the income from their Bank shares, upon which some of them, no doubt, in a measure depended, especially at a time when many other investments had become less produc-

tive, and the directors thought it best to consult the interests of tho shareholders in recommending that a dividend of seven per cent, per annum be declared, leaving a balance of profits of the half-year for appropriation to the bad and doubtful debts account. The Chairman concluded as follows: —"A lift in our commercial horizon would entirely change tho aspect of aifatrs, and in view of the very hopeful prospects of tho goldminlng industry in our neighborhood, and looking to the general revival which has occurred in Australia, wo

think we'should be blnmoable if wo adopted ii too pessimistic attitude in dealing with the large and importaut interests committed to us. It will, no doubt, bo in the minds of many of you to enquire what amount in the opinion of the Board would have to bo sacrificed in order to ensure an, early realisation of the assets to which I have ajluded, and a consequent restoration of tho Bank's profit* to their old standard, but you will, I think, recognise tho difficulty of giving a categorical reply to such an enquiry when you consider the present stagnation of the market for property in this colony It must be much a matter of opinion, and is a point on which opinions would vary. We should bo glad, however, if you would confer on this and some other important matters which call for consideration. Wo have reason to believe that this course will be satisfactory to many shareholders. It would certainly bo (satisfactory to us, and wo think it would be advantageous to the Bunk." Mr W. W. Johnston, of Wellington, and Mr G. Buckley, of .London, have been nominated for vacancies on the directorate, and as

there are no other candidates the names of the committee to bo appointed to examine tho securities are Judge Gillies and Messrs W. H. Colbeck, W. W. Johußton (Wellington), J. McLean (Otago), and G. Buckley (Loiujoi,i).