UNION BANK.

Evening Post, Volume CVI, Issue 55, 13 September 1928, Page 14

UNION BANK.

Mr. Henry P. Sturgis presided at the aunual meeting of the Union Bank of Australia in London. In conformity with the powers conferred upon them by the proprietors in July last, the directors, in the following October, made an issue of 100,000 shares. The issue was fully subscribed, and the dividend announced was payable on the present paidup capital of the bank, namely, £4,000,000. The premium of £600,000 from the new issue had been added to the reserve fund, which stood at £4,850,000. After making full provision for bad and doubtful debts, the net profit was £736,904 3s 7d, including £97,938 12s Id brought forward from previous year. These profits, had enabled setting aside £50,000 towards cost of new buildings, rendered necessary by expansion of the bank's business and increased representation. The directors also put aside £25,000 to assist the bank's guarantee and provident funds, and the staff had agreed to increase annual contributions to the funds. From the balance of the profits a dividend had been. declared at the rate of 15 per cent, per annum, free of United Kingdom income tax. Liabilities increased by £1,515,000, attributable to addition of £500,000 to capital, £600,000 to reserve fund, increase in undivided profits of £39,000, and- increase in deposits of £1,433,000. "The latter feature might be regarded with distinct satisfaction." Other movements were decreases in circulation of £20,000 and in bills payable of £.1,035,----000. Assets increases were £396,000 in specie, cash balances, and bullion, £210,000 in money at call in London, £646,000 in investments, and £1,755,000 in bills receivable. A decrease of £1,488,000 was shown in advances. The increase in bills receivable and money in London was largely due to the greater volume of exports from Australasia during the latter part of the financial year; while the decrease in advances was reflected in the increase in specie and investments. Liquid assets amounted to about 10s Id in the pound of total liabilities to the public, or, after deducting the £1,000,000 from investments allotted to the reserve fund, about 9s 7d in the pound. Gross profits amounted, to £1,531,696, compared with £ 1,506,462 a year ago, an increase of £25,234. Expenses amounted to £592,730, an increase of £13,694. The chief increases in expenses came under the heading of salaries "A" in Australasia, £1785; salaries and miscellaneous expenses in London, £2572. On the other hand, a saving was shown under the heading of incorae tax to the extent of £8984, due to the incidence of colonial relief.