BANKS OF NEW ZEALAND

Greymouth Evening Star, 19 June 1912, Page 5

BANKS OF NEW ZEALAND

GENERAL MEETING OF SHARE HOLDERS.

DOMINION IN FLOURISHING CONDITION. BANK’S CAUTIOUS POLICY JUSTIFIED. (BY ■ TELEGRAPH, —PER PRESS' ASSOCIATION.) WELLINGTON, This Day.

The ordinary general meeting of the shareholders of the Bank of New /.egland was held at the head office of the Bank, Wellington, at 11 a.m. to-day. There was a good attendance of shareholders. DIRECTORS’ REPORT. “The directors submit herewith the balance sheet and profit and loss statement of the bank for the year ended 31sl March last. , The profits, after providing for expenses of management, all bad and doubtful debts, and after making provision for aTuial donation to the Provident Fund and for bonus to staff, are £396,182, 5s lid. From this has to be deducted interest on guaranteed stock, £40,000, leaving a total of £356,182 5s lid. Of this sum the directors have allocated in reduction of bank premises and furniture. £25,000,. leaving balance of profit for the year, .£331,182 5s Tld, to which has to be added balance brought forward from last year, £34,405 7s 6d, total £365,587 13s sd', from which there has been paid interim dividend at 6 per cent, on preference shares £3O,DUOO, and interim dividend at 6 per cent.' on ordiriai’y shares, £30,000, total £60,000, leaving,available for distribution £305.587 13s sd.

This the directors propose should be disposed of as follows : —Dividend at,the rate of 4 per cent, on preference shares, £20,000 (making 10 per cent, for the year); dividend at the rale of 6 per cent, on ordinary shares, £30,000; bonus at the rale of 3 per cent, on ordinary .shares, £15,000 (making 15 per cent .for the year); transfer to reserve fund, £2OO/000 (making reserse fund £1,200,000); leaving balance to be carried forward, £40,587 13s sd; total £305,587 13s 6d.

1 During the year brandies have been opened at Kaikobe, Kavvhia, Otaki Railway, South Dunedin, Symonds street (Auckland), and Te Araroa; and the agencies at. Morrinsvllle Ngaruavvahia, Kongotea,' Takupau, and Taumarunui have been made daily branches.

Agencies have been opened at Glen Oroua, Ohaeawai, Owliango, Raurimu, Te Karaka, Waikaka, and Waimana. The agency at Henley has been closed, and the branches at Coromandel and Ross are no longer open daily, but are visited from Auckland and . Hokitika respectively, the former once a fortnight and the latter weekly. The branch at Otaki has been made a receiving agency visited daily Trora Otaki Railway. CHAIRMAN’S ADDRESS.

The chairman of the Bank of New Zealand (Mr Martin Kennedy), in moving the adoption of the.report and balance sheet, said that they had had a good year, the profits being the highest yet earned by the bank since its commencement in 1861.

.The deposits were less by 162,052,878 than the figures of a year ago, the decrease being due to the reduction in the Government’s credit balances, which in the last balance sheet were abnormally High. The ordinary deposits, both fixed and free, showed a satisfactory increase, * The money at short call in Government and ''other securities in London tood at £3,316.159.

That amount, compared with tlfe previous year, showed a decrease of £3,394,080, attributable to the reduction previously mentioned in the Government balances, and to the withdrawal of - funds from London to meet an active demand for accommodation in the Dominion.

The reduction in the liabilities rendered the maintenance of a high cash reserve last year uncalled' for.

Daring the year there had been a strong demand on the banks and other financial institutions, within the Dominion for ac commodation.

Although adopting a restrictive policy for some time past, they had responded reasonably to the call. The present policy was to maintain themselves in a position to meet legitimate requirements for their established connections and the Dominion’s industries and trade.

The realisation hoard assets had been further reduced to £136.156, against £216,354 in 1911. Dealing with general, matters! the chairman said that the reserve fund, which in 1906 stood at £81,294, to-day,, after a, proposed transfer of £200,000, won lei stand at £1,^30,000. This accumulation had been made practically during the last six years. As a consequence of an adherence to. the cautious policy the bank’s losses had been exceedingly light during the last year.

Six new branches and seven new agencies had -been opened. In rview .of; the increased cost of living and good services by the staff, the board had granted a bonus of 5 per cent, on their salaries..

He concluded by commenting upon the present gratifying state of the markets for the staple products of the Dominion, wool, frozen meat, and daily produce all commanding .satisfactory -prices. FURTHER SPEECHES.

Mr W. Watson seconded the motion for the adoption of the report... In a speech endorsing the views of the chairman, he said he would stand for election to the directorate again in December.

Mr John Mill congratulated Mr Kennedy on his election as chairman and the good report on the year's working. He also approved of the board’s treatment of the staff. Ho said living had gone up, and officer's had to wear their Sunday clothes every day of the week. The motion for the adoption of the report and balance sheet was carried unanimously. Votes of thanks were passed to the directors and staff. In reply, to shareholders regarding the hank’s obligation to the Government.'Mr Kennedy said that many shareholders were under the impression that the guarantee was money owing to the Government. It was nothing of the sort. It was money due in London on a guaranteed store, and its redemption would not put any more money in the coffers of the Government. Still, the question Oi the renewal of the guarantee or paying it off had-to bo dealt with. If it was paid off it would limit the bank’s power of lending