NATIONAL BANK

Evening Post, Volume CXXVIII, Issue 16, 19 July 1939, Page 14

NATIONAL BANK

BUSINESS REVIEWED

DEPOSITS CONTRACT

Reviewing; the balance-sheet of the National Bank of New Zealand, Ltd., for the year ended March 31. 1939. Lord Balfour of Burleigh, chairman, informed shareholders at the annual meeting held in London on June 29 last that capital, reserve fund, and currency reserve remained the same as last year. Deposit and current accounts at £13,298,000 showed a decrease of £610,000, due partly to the fact of a genera] contracuou in ieposits in New Zealand, and also to repatriation of New Zealand deposits of British firms, and to repayment of certain London deposits. Bills payable and other liabilities, which were £1,321.000, showed a slight decrease of £i 3.000. Referring to the assets, coin and notes and cash at bankers and money at call, which includes statutory deposit with the Reserve Bank, totalled £2,157,000, giving a net increase of £19,000. Investments in British Government securities at £1,007,000 decreased by £229,000, but against this there was the increase in New Zealand Government securities of £23,000, making them £1,016,000, whilst New Zealand Government Treasury bills reappeared in the bal-ance-sheet to a total of £300,000. Remittances in transit between branches we're £449,000, an increase of £141,000: bills receivable in London and in transit at £410.000 are £59.000 less than last year, and bills discounted at £365,000 were £49,000 less. Last year advances showed an increase of £1,750,000 as compared with 1937. and stood at £12,700,000. This year they have fallen by £781,000 to £11.900,000, but were still higher than for any year other than 1938. The fall was partly due to the incidence of income-tax payments which this year were spread over a longer period, and partly to a deliberate policy, as prudent bankers, of encouraging customers to take a firm control of their finances during a period of trading activity such as had been experienced during the past year.

"We endeavour at all times to act in the best interests both of our customers and of the Dominion," said Lord Balfour, "and I think this is illustrated. by an analysis of our advances at March 31, which reveals the interesting fact that although the total is less than last year, advances to primary producers and allied industries are actually higher. Landed property and premises stand at £649.000. an increase of £13,000." During the year new premises at Hokitika. Newmarket, New Plymouth, Waipukurau, and Otahuhu had been occupied. The bank had now 61 branches and 29 agencies in New Zealand.

Lord Balfour, referring to the late Sir Thomas Wilford, said: "We learned with much regret a few days ago of the death of our late colleague Sir Thomas Wilford. As you will remember, he left us to return to New Zealand two years ago, after he had been a member of the board for three years. Our regret will be shared by many of his friends in London who retain a vivid recollection of his genial personality." He also expressed the warmest and most sincere appreciation of shareholders of "the services rendered by the officers and staff of this bank both in the Dominion and in London. Mr. Hanna and Mr. Littlejohn in New Zealand, and Mr. Norwood and Mr. Lawrie in London, have all had a trying and difficult year and have rendered excellent service. Banking in New Zealand is no bed of roses for the executive officers; import restrictions have added a new complication to an already difficult task, and the September crisis and subsequent preparations for emergency have brought new problems to the London manager and secretary. I have very real pleasure in placing on record our thanks for all the excellent work which has been done both in New Zealand and in London."

The report and accounts were adopted unanimously; the retiring directors, Lord Balfour of Burleigh and Mr. R. D. Trotter, were re-elected; and the shareholders carried with acclamation a vote of thanks to the directors, general manager, and officers of the bank in London and New Zealand.