BANK PROFITS.

Horowhenua Chronicle, 21 June 1929, Page 8

BANK PROFITS.

HOW THEY ARE DISTRIBUTED. (Special to Chronicle) WELLINGTON, This Day. <■ In his address to shareholders at the annual meeting of the Bank of New Zealand to-day, Sir George Elliott, the chairman of Directors, gave the following particulars of the distribution of the profits: DIVIDEND AND BONUS. The dividend and bonus proposed is at the same rate as that of last year. The total distribution for the year will be: To N.Z. Government . . £244,433 To ordinary shareholders 570,459 £814,892 It may interest you to know that the revenue derived by the Government from this Bank for the year amounted to £533,289, made up a i 1 follows: Dividends on share capital £244,433 Income tax . 164,494 Land tax. 1?,633 Note Tax 106,729

£533,289 Other items of interest from the report are as follows: Although there has been a steady demand for Long-term Mortgage Loans, the volume has not, by any means, been as great as was anticipated. , The actual net earnings for the year show a satisfactory increase over those for the previous year. The result is Vluo to the first issue of Long-term Mortgage Capital being now fully paid up and fully employed, to the higher rates obtained in London on the larger amount of liquid funds which we have there, and to the smaller provision for bad and doubtful debts that has been required as compared with previous years—indeed since 1920. The profits from our business-in the Dominion have fallen off considerably, owing chiefly to expansion in interestbearing deposits (many millions of which are still carrying the high rate of 5 per cent which ruled for twoyear fixed' deposits from May 1927 till July 1928); to the. reduced rate of interest on advances, and to some reduction in the amom-1 of advances. The sunply of money available for loan on raortgige against good security is greater than the demand. The ruling rate for such bans is 6 per cent though oecarionally a little iess is accepted for particularly choice business.