UNION BANK

Evening Post, Volume CXVI, Issue 34, 9 August 1933, Page 10

UNION BANK

INCREASE IN NET PROFITS

(From "The Post's" Representative.) . LONDON, July 7. Following upon the announcement of an increased dividend for the past year, the Union Bank of Australia has issued its full accounts1 for the year to February 28 last, showing that the higher distribution is amply justified by the results. Gross profits were slightly lower at £1,107,030, a reduction of some £31,000, but net profits were £209,559, against £100,953, this result being due to the successful efforts of the management to bring about a reduction of expenses, in company with some saving in taxes.. The profits are arrived-at after making provision for bad and doubtful debts, and other contingencies, and there is no specific allocation to reserves on this "occasion, but the balance carried forward is increased to £100,523 as compared with £90,961 brought into the accounts. The balance-sheet shows the currency reserve unchanged at £1,500,000 in addition to the ordinary reserve fund of £3,350,000. Total deposits were very slightly lower at £35j215,930, but among the assets the bills discounted, loans, and other securities showed an expansion of £1,300,000 at £31,642,034. ■ ■ . Following ' the annual meeting' on July 31; a special meeting is to be held at which new articles of association will be submitted for approval. For the most part the. alterations are formal, but among the new powers provision is made for the conversion of any fully-paid shares (the bank has none at present) into stock, and for the capitalisation of profits and issue of bonus shares, the board considering it desirable that the bank should' have this power. The "Financial Times" in its comments on the Union Bank's year remarks that "the bank should be deriving a steadily growing benefit now from the reduction in deposit interest, which it was unable to obtain on account of existing agreements now running off gradually, concurrently with the lowering of charges to borrowers. Trade conditions, too, have- taken a more favourable turn."