STRONG POSITION

Evening Post, Volume CXIII, Issue 130, 6 June 1927, Page 10

STRONG POSITION

BANK OF NEW ZEALAND

RESERVES EXCEED £3,000,000

DIRECTORS' ANNUAL STATEMENT

The directors of the Bank of New Zealand submit their balance-sheet and profit' and loss statement of the bank for the year ended 31st March last. 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 staffs, are £868,870 7s 3d. From this has to be deducted interest on guaranteed stock, £21,199 8s 7d, which leaves a balance of profit for the year of £847,(370 18s Bd. To this sum there is to be added the surplus on realisation and on maturity of Government and other securities, amounting to £143,420 8s sd, and the balance brought forward from last year amounting to £565,378 9s 7d, making in all thei sum of £1,556,469 16s Bd. Prom this there have been paid dividend on preference A shares, £50,000; interim dividend on preference B shares, £41,666 13s 4d; and interim dividend on ordinary shares, £250,000; in all £341,666 13s 4d. There is left for distribution £1,214,803 3s 4d. This the directors propose should be disposed of as follows: —Dividend on< C long-term mortgage shares at 6 per cent, per annum, £878 18s Id; dividend on D long term mortgage shares at 7$ per cent. - per annum, £2185 5s 9d; dividend on profeernee B shares (making £162,500 for the year), £120,833 6s 8d; bonus on preference B shares, £18,750; dividend of one shilling and fourpenee per share on ordinary shares (making £500,000 for the year, equal to two shillings and eightpenee per share), £250,000; bonus of 1 per cent, on ordinary shares. £37,500 and transfer to Eeserve Fund, £200,000 (making Beserve Fund £3,025,000), leaving a balance to be carried forward of £584,655 12a lOd. ' "■ ■ . THE BALANCE-SHEET. The balance-sheet is as follows:— Liabilities.—Capital: 4 per cent. guaranteed stock, £529,988 10s 6d; preference A fully-paid £1 shares issued to the New Zealand Government, £500,000; C long-term mortgage shares issued to the New Zealand Government, paid up, £58,593 15s; D long-term mortgage shares, paid up (£116,505) and paid in advance (£199,098 ss), £315,603 ss; preference B fully-paid £1 shares, issued to the New Zealand Govornment, £1,375,000; ordinary shares of £1, fully paid, £3,750,000. Total capital, £6,529,185 10s 6d. Eeserve Fund, £2,825,000. Notes in circulation, £3,765,593' 10s. Deposits, £29,664,024 14s Id. Balances due to other banks, £46,044 6s lOd. Bills payable and other liabilities (including provision for contingencies), £3,970,220 19s 3d. Reserve for taxes, £426,000. London office acceptances under credits, £143,371 4s lOd. Transfers from long-term mortgage department, £276,297. Balance of profit and loss, £1,214,803 3s 4d. Grand total, £48,860,540 8s lOd. Assets.—Coin, cash balances, and deposits with bankers £7,532,199 8s 4d; Government notes—Commonwealth, Fijian, arid Samoan Administration, £85----591; noties of other banks (legal tender), £35,788; balance due by other banks; £35,513 15s Id; bullion on hand and in transit, £7190 3s 7d; money at call on short notice, Government securities, and other securities in London (£4,366,751 15s) and bills receivable I in London and in transit (£3,684,809 12a 6d), £8,051,561 7s 6d; New Zealand Government securities, £3,644,916 ,10s 3d; Australian Government securities, £2,125,385 17s 4d; municipal and other local bodies' securities, £964,355 4s 7d; bills discounted, £1,462,027 Is 7d; j other advances and securities and debts ; due to the bank, after deducting pro- j vision for bad and doubtful debts, £520,877 9s 3d; liabilities of customtransit between branches, £1,414,613 8s 4d; landed property, premises, etc., £520,877 0s '9d; liabilities of customers for acceptances, per; contra, £143,. 371 4a lOd; long term mortgage department, £374,197., Grand total, £48,860,----540 8s lOd. liONGTERM MORTGAGES. The capital in the long term mortgage department at 31st March amounted to £374,197. Loans made were for a total of £97,900; transferred to the bank, £276,297. . PROFIT AND LOSS. The profit and loss account is as follows:—Dr.: Dividend on preference B shares, £120,809 7s 2d; dividend on ordinary share. capital, £250,000; amount transferred to reserve fund £247,689 4s; in all £618,498 11s 2d. Balance carried down,, £565,378 9s 7da total of £1,183,877 0s 9d. Twelve months' interest on guaranteed stock, £21,199 8s 7d. Dividends paid 4th December, 1926: On preference A shares £500,000 (£50,000); on preference B ■bares, £1,375,000 (£41,666 13s 4d); and on ordinary shares, £3,750,000 (£250,000); in all £341,666 13s 4d. The balance, being profit on the ordinary operations of the bank for the year, was £84,7,670 18s Bd, to which has to be added: Surplus on realisation and on maturity of Government and other securities, £143,420 8s sd; and the amount brought forward from last year £565,378 9s 7d; in all £1,556,459 16s Bd, less dividend paid, as above, £341 - 666 13s 4d; leaving £1,214,803 3s 4d, the grand total being £1,577,669 5s 3d. Cr.—Balance at 31st March, 1926 £1,183,877 0s 9d; balance brought down, £565,378 9s 7d; profits for year ended 31st March, 1927, including recoveries, and after payment of, andpro- , vision for, all interest due and accrued on deposits, provision for bad and doubtful debts, and other contingencies, for the annual donation to the provident fund, .and also for bonus to staff, £1,830,881 Is lOd; and surplus on realisation and on maturity of Government and other securities, £143,----420 8s sd; making £1,974,301 10s 3d. From this has to be deducted salaries and allowances at head office and 228 branches and agencies (£448,484 16s 4d), directors' remuneration, including -London Board (£8786 6s 2d), general expenses, including rent, stationery, telegrams, postages, travelling, repairs to premises, etc. (£151,311 3s 4d), audit expenses account (£2687 19s 8d), and rates and taxes (£350,740 9s Id) • all amounting to £962,010 14s 7d, ■which, deducted from £7,974,301 10s 3d, leaves £1,012,290 15s Bd, making together with £565,378 9s 7d, balance brought forward, a grand total of £1--577,669 5s 3d. ; RESERVE FUND. The reserve fund, including £200 000 to be added from profits for the year ended 31st March, stands at £3,025----000. ' '