PRIMARY PRODUCERS' BANK

Evening Post, Volume CIX, Issue 125, 29 May 1930, Page 12

PRIMARY PRODUCERS' BANK

Net profit shown by the Primary Producers' Bank' of Australia, Ltd., for the I year ended 28th February amounted to £2828, a decline of £4245. No allocation is made, and with £5605 brought forward, there is a carry-forward of £8433. Principal details are as follow:— ' ' 1929 1930 •...••■- £ £ Net profit 7,073 2,828 To reserve ......',... 10,000 — Carried forward 5,605 8,433 Capital 434,435 438,803 Premium reserve 65,004 61,706 Reserve fund 20,000 20,000 Deposits 1,903.895 1,895,727 Other liabilities .... 62,732 44,385 Balance due on property 50,000 45,000 Notes and coin 56,891 47,419 Due by other banks .. 139,848 80,779 Money at short call .. 208,000 192,000 Commonwealth bonds 170,888 213,3431 Bills receivable 92,781 59,850 Advances, etc. '.. , .... 1,769,650, 1,804,558 Bank premises ....... ? 86,670 99,096 The "premium reserve has .been drawn upon to the extent or", £3298. Capital shows an increase of £4368. Deposits fell away :by £8168, advances rose.by £34;908. An increase- of £18,347 appears in bills in circulation. Liquid assets have declined £75,020, an increase of £42,455 in Commonwealth securities being the only'higher item; the decreases are: Notes. £9472, balances due by other banks £59,119, money at short call ,£16,000, and bills receivable • £32,931. Bank premises are valued £12,42G higher, and the balance due on property ( purchased has been reduced at £5000. Mr. Henry Schweiger, chairman, addressing shareholders at the annual meeting, admitted that the profit was very smajl, but in common with other trading concerns, a decreased volume of business had affected profits, and he maintained that, in view of the prevailing conditions,. that the bank's position had been well held. The slight decrease in deposits was not unexpected, owing to the holding . back of stocks of wool and wheat by growers, and to the lower prices ruling for these 'commodities. Keen competition had naturally existed for deposit business. As investments in Commonwealth bonds gave a better return than short call money, the bank had augmented its holding under that heading. It was pleasing to note that the Commonwealth Government had recently discontinued sales of Treasury bonds at 6 per cent., and this appeared to indicate that future loans would be offered at a slightly lower interest rate. The total of liquid assets, £593,393, represented' 30.58 per cent.iof total public liabilities. The reserve had been kept up at that ratio in preference to undufy increasing overdraft accommodation. There hdd been heavy demand for overdrafts during the year, generally against first-class farming and grazing properties, and the bank had done its best to meet the reasonabl6 needs of its customers in this direction. For some time past the band had been steadily endeavouring to build up its. general commercial business, particularly with a .view to taking a more active part in the exchange banking 'field.