BANK OF N.Z.

Grey River Argus, 18 June 1927, Page 6

BANK OF N.Z.

ANNUAL MEETING. A FINANCIAL"REVIEW. ACTING CHAIRMAN’S ADDRESS. WELLINGTON, June 17. The annual meeting.jof the shareholders of the Bank of New Zealand was held to-day. Mr Richard W. Gibbs, Acting Chairman of Directors, presided, and said in his address:—The capital and reserve fund combined show an increase of £621,887, representing amount of calls paid up on the C. and D. longterm mortgage shares and the amount placed to reserve last year. The amount standing against the C. and D. shares includes instalments paid by shareholders in advance. From this year’s profits it is proposed to transfer £200,000 to the reserve fund, bringing it up to £3,025,000. Although the profit for the year, exclusive of that on investments realised or matured, shows a reduction of £65,000 as compared with the figures for the previous year, the actual earnings of the Bank were not £3OOO less, the difference being accounted for mainly by a larger recovery of bad and doubtful debts in the previous year. Deposits show a reduction of no less than £1,457,264, which naturally affects the earning power of the Bank. Note circulation shows a shrinkage of £678.799—an indication of leaner times. The increase in the previous year was ito some extent due to the Easter ex•penditure, which did not affect the position on this occasion. Coin, cash balances, aud deposits with bankers shows a reduction of £1.898,248, the amount thus temporarily invested being now utilised in other directions. Government and sundry securities show a reduction of close upon a million. In order to maintain our cash reserves, which were being depleted by increase of advances and reduction of deposits, we found it advisable to realise a portion of our investments in Government and municipal stocks. In some cases these investments had been well bought; in others —mainly New Zealand Government War Loans (to which we subscribed very heavily during the war period)—we sold at less than cost. The first nine items on the assets side of the balance-sheet, representing the Bank’s liquid resources, amount to £22,482,008, compared with £25,066,358 of twelve months ago.

Bills discounted and advances together total £23,924,979, as against £22,662,696 as last shown, a not inconsiderable increase, which, coupled with the fall in'deposits of £1,457,264, represents an adverse movement of £2,719.547.

Landed property, premises, etc., stand at £520,877, as against £484,103 twelve months ago. DIVIDEND. The dividend, which will be payable at Wellington to-day and at branches on receipt of advice, is at the old rate, viz., Is 4d per share on the ordinary shares. The possibility of a 1 per cent, bonus for the year being forthcoming was foreshadowed in a previous report, and I am pleased to say our earnings warrant this, and the modest amount, representing Is for every £5 of capital, will be distributed with the dividend. The dividend on the longterm mortgage shares will also be payable to-day. The total of the balance-sheet in 1914 reached what was then considered a very respectable figure, viz., £24,400,250. The present balance-sheet doubles that figure, and stands at £48,860,540. Capital account has increased from £2,000,000 to £6.529,185, and deposits, which in 1914 stood at £18,070,613, now total £29,664,024, and advances and discounts from £11,360,486 have gone to £23,924,979.

The staff has increased from 1001 to 1495, and the pay-sheets, in the way of salary and bonus, from £207,000 to £470,000.