BANK OF NEW ZEALAND

Hawera Star, Volume L, 20 June 1930, Page 6

BANK OF NEW ZEALAND

THE PAST YEAR REVIEWED TO-DAY’S ANNUAL MEETING SAME DIVIDEND AS LAST YEAR. (Special To The Star.) WELLINGTON, June 20. In moving the adoption of the report and balance-sheet at to-day’s meeting of the Bank of ‘New Zealand,, Sir George Elliot, chairman of the board of directors, said (.inter alia): “No alteration has taken, place in the capital of the bank during the year. It is proposed to add £125,000 to the reserve fund this year* as against £275,000 last year, when the unusually large amount of £212,000 of recoveries (provision previously made for certain bad and doubtful advances) was found not to be required and was brought into the profits. With this addition the reserve fund will stand at £3,550,000. “The total shareholders’ funds, as shown in the balance-sheet, now amount to £11.031.269 ; such a position must bring to depositors and customers alike a .comfortable assurance of the strength and stability of the institution.

“Deposits: show a decrease of £42,043. Fixed deposits have increased £2,357,154, almost entirely in very large short-dated deposits which, being subject to early withdrawal, cannot lie safely utilised for ordinary advances. Current account deposits have decreased £2.399,197, owing mainly to customers drawing on their balances to meet conditions arising out of the unfavourable export season.

PROFIT AND LOSS ACCOUNT. ‘‘The actual net earnings for the period under review are well in excess of the figures for the previous year. In view, however, of existing conditions it has been deemed advisable to make much larger provision than usual for doubtful advances, though we are hopeful that a considerable portion of the amount set aside will not be requited. “During the greater part of the year we had a large amount of funds employed in London on which we obtained much higher rates than usual, and profits have been further augmented owing to increase in our advances. , “The dividend and bonus proposed are at the same rate as that of last year and will be payable in Wellington to-morrow and at branches on receipt of advices. The total distribution for i the year will he: To New Zealand l Government, £245,312; to ordinary shareholders, £572,656; total, £817,968.

It may interest you to know that the revenue derived by the Government from this bank for the year amounted to £540,154,'made up as follows: Dividends on share capital. £245,312; income tax, £168,561; land tax, £17,996: note tax, £108,285; total, £540,154. It may he added in this connection that wo hold £3,391,160 of 4£ per cent New Zealand war loans on which no tax is payable.” Mr Richard W. Gibbs, in seconding the motion, said: “I have pleasure in seconding the adoption of the report and balance-sheet. The chairman, gentlemen, lias explained to you the chief variations in the balance-sheet. At first glance, bv a comparison of the profit and loss figures with those of last- year, some of you may think that, with'the upward movement in our advances of approximately £6,000,000, an increase in our profits of onlv £35,000 needs some explanation. When you consider that our free deposits have decreased over £2.000,000, and have been replaced by interest hearing deposits of about the same amount, the explanation is simple.”