BANK DIVIDENDS
ARE THEY WHAT THEY SEEM?
Considerable misapprehension appears to exist in tho public mind and, judging by Parliamentary debates, in the political mind also on the matter of bank dividends. In the balance-sheets of the banks these dividends may appear, as from 10 per cent, or 12 per cent, to 14 per cent, or 15 per cent., whereas it would appear that they are not always what the figures would indicate. The general manager of the National Bank of New Zealand, in an endeavour to make the position clearer so far as his own. bank, is concerned, has pointed out to "The Post" that the National Bank's paid-up capital is £2,000,000; but between 1906 and 1925 shareholders have paid premiums on shares amounting in the aggregate to £1,437,000 (included in the reserve), and the total capital paid up is therefore £3,437,000. ■ 'The present rate of. dividend of-12 per cent, on £3,437,500 is equal to 7 per :cent. per annum, which cannot be considered an excessive return by way of dividend. The former dividend of 12 per cent., plus a bonus of 2 per cent.- paid for some years past, gave shareholders a return of £8 3s per cent, per annum.
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https://paperspast.natlib.govt.nz/newspapers/EP19300818.2.96
Bibliographic details
Evening Post, Volume CX, Issue 42, 18 August 1930, Page 11
Word Count
202BANK DIVIDENDS Evening Post, Volume CX, Issue 42, 18 August 1930, Page 11
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