BANK OF NEW ZEALAND.

Marlborough Express, Volume LIII, Issue 167, 11 June 1919, Page 3

BANK OF NEW ZEALAND.

A SUCCESSFUL YEAR,

The report of tho directors of the Bank of New Zealand for the year ended March 31st last shows that the profits, after providing for expenses of management, and after making provision for the annual donation to the Provident Fund, and for a special grant thereto, also for a hontfs. to % staff, are £459,221 4s 4d. From this has to he deducted interest on guaranteed: stock, £21,199 10s lOd, leaving. £438,021 13s 6d. Of this sum the directors have allocated in reduction of the Bank Premises and Furniture Account £50,000, leaving a balance of profit for the year of £388,021 13s 6d, to which has to be added the balance brought forward from last ,year, £145,702 12s 3d, making a total of £533,724 5s 9d, from which there has been paid an interim dividend at 6 per cent, on "A" and "B" preference shares, £45,000, and an interim dividend at 6 per cent, on ordinary shares, £60,000, making together £105,000, and leaving available for distribution £428,724 5s 9d. . This tne directors propose to dispose of as follows:— ' Dividend at the rate of 4 per cent. on."A" preference shares ... 20,000 Dividend at the i-ate of 6 per cent, on "B" preference shares ... ...... .... 15,000 Dividend at the rate of 6 per cent, on ordinary shares 60,000 Bonus at the rate of 3 per cent, on "B" preference shares ... ..<' ... ... 7,5C0 Bonus at the rate of 3 per cent, on ordinary shares 30,000 Transfer to Ileserve Fund... 150,000. Making the Reserve Fund £2,3-50,000, and leaving a balance to be carried forward of ... ...£146,224 5s 9d Among the principal items in the' balance-sheet are: — £ Liabilities 2,279,988 Reserve ..., ... 2,200,000 Notes'in circulation ... .... 3,728,249 Bills payable and other liabilities 2,860,391 Government notes of Commonwealth, Fiji, and Samoa '. 269,754 Bullion 90,595 Money at call and short Government and other securities in London... 13,179,285 Investments in Dominion... 3,276,102 Commonwealth and Fiji ■Government securities 134,316 Bills discounted 1,475,750 Other advances and debts due to Bank 17,389,787 Landed property 399,867 TREMENDOUS EARNING POWER Judging by the balance-sheet of the Bank of New Zealand for the year ended March 31st, 1919, says a correspondent of the Christehureh Press, the earning power of the Bank appears to be tremendous, and it is a question whether tho Bank will not be obliged very soon to increase its capital. Such a movement would accord with the trend of affairs in the banking world. , If we take the aggregate profits of the past three years we get the following:— £ s. d. Profits, 1917...' 415,489 19 2 Profits, 1918 386,606 18 11 Profits, 1919 430,021 13 6 Brought forward in 1917-1918 56,464 6 11 £1^296,582 18 6 Tho distribution of this huge sum shown below: — £ s. d. Written off premises... 150,000 0 0 Adeed to reserve 287,80S 12 9 Preference dividend ... 262,500 0 0 Ordinary dividend ... 450,000 0 0 CarriccMorward 146,224 5 9

£1,286,582 18 C

The reserve fund now stands at £2,350,000, while the paid-up capital, including 4 per cent. guaranteed sto'k i 5'"£2,279,988 10s 6d. Tho note circulation is £3,728,249, against £3 312,995 last year, deposits total £:51,71(>,353' Os Bd, against £30,437,----93G 17s 3d, and other liabilities £2,£00,391 9s Id, against £2,329,559 9s 9d. The total of coin and bullion, lecnl tender notes, and Government notes is £6,719,765 11s lid, against £7,225,040 li)a Bd, a decrease of £505,----281 7s 9d, due to the reduction of tli;' iioldiiii;: of logul tender notes, tlie total of the latter being £440,960, against £1,194,760 last year. Thereis^an increase in the coin and cash balances of £418,000, money at call •uid bills receivable in London total £13,818,056, against £12,443,880, tlic discounts amount to £1,475,751, •u'-ainst £1,820,202, and the advances i:,7 £17.2*9.707, against £16,466,493. I'll 1917 the Hank paid in rates and raxes £198.052; in 1918 this increased to £34(5,850, and in the balance-sheet just issued this item totals £386,273.