BANK OF NEW ZEALAND.

Manawatu Standard, Volume XLI, Issue 9539, 16 June 1911, Page 2

BANK OF NEW ZEALAND.

ANXU/.L MEETING

At the annual meeting; of shareholders of the above io-tlay, thy Chairman (Mr 11. Bcauchamp), in moving tlio adoption of tlio report, said: As you are aware, this is the jubilee year of the Bunk, and it gives mo very great pleasure indeed to.preside on such an auspicious occasion, more especially as the report and balanoo-shect'submitted to you disclose so satisfactory a position. .Following my usual practice, I will first review briefly tlio figures of the balancesheet that has boon distributed among yonCapital—Tlio paid-up capital of tlio Bank remains unchanged at £2,000,000. The Pa-serve Fund—ln my ipeeeh last June, you may romomber I expressed the hope that ihe Bank would this year bo in a position to show its reserve fund and undivided profits at not less than £1,000,000. I am pleased to announce to-day that our rosejvo fund, aftor taking credit for an appropriation of £1200,000, which the directors propose to mako from tlie profits at 31st, March last, will stand at £1,000,000. The following table showing tho rapid growth of this fund since 1906 mav bo of interest to you:—At 31st March,'l9o6. £81,294; 1907, £250,000; 1903, £450,000; 1909, • £650,000; 1910, £800,000; 1911, £1,000,000. You will observe from the balance-sheet that £500,000 of tlio reservo fund is now invested in British Government securities. Notes in circulation stand at £977,246 an increase of £57,917 as compared with last year. Deposits are more by £3,199,066 than at March, 1910. This increase is clu-.t in a great, measure to largor Government balances, but ordinary deposits, both free and fixed, also show a considerable and satisfactory expansion. Bills payable and other liabilities show an increase of £202,503, mainly in bills payable, which are always an uncertain and varying quantity. Turning to tho assets side: Coin, Bullion, Money at Short Call, etc.—As compared with the previous year, money at short call, Government and other securities in London togetlior show an increaso of £2,818,595, and now stand at £6,710,239. Coin and cash balances aro more by £104,515 than at March. 1910, tho item now standing at £3,248,290. Bullion also shows an increase of £7,514. In' viow_ of tho considerable expansion in deposits to which I have already referred, a corresponding increase in cash assets is, of course, to lie looked for. Tho figuros show that the Bank is maintaining a strong position. I may add that the totals under this head, together with tho amount of bills receivable and investments in the colonics, aro equal to 67 j per cent,, (or 13s 6d in the £) of Ihe total liabilities of the Bank to the public. Bills receivable, in London and in transit, aro less by £331,939 than at 31st March, 1910. To a shrinkago in the oxports from the Dominion tho lessor amount under this heading may be attributed.

Investments in the colonics stand at £1,338,010—an increase of £193,265 on last year's total, representing the extent of our furttior purchases of debentures of local'bodies, soino of which are hold only temporarily ponding realisation. Advances.—Hills discounted and other advances shoiv an increase of £77,177 and £912,367 respectively on the previous year's figures, the natural result of followed activity genoraily. Bearing in mind tho keen competition for good advance business has now existed for a considerable period, the expansion in our advances must bo regarded as very satisfactory, and indicates that wo ai'o getting a fair share of tho suitable business offering. It is hardly necessary for me to repeat that this very important branch of tho Bank's business continues to receive our greatest care and attention, Assets Realisation Board A&sots.—Tho following table shows a steady and satisfactory reducikm in these assets for tho year At 31/3/10. At 31/3/11. Balances owing by purchasers ... £286,899 £178,540 Other assets unrealised ... 46,391 37,813 Wo aro continuing our ofTorta to dispose of the unrealised properties as spoedlly as wo can, without unduly sacrificing thorn. Landed property and premises stand at £423,739, an increaso of £63,949 on tho previous year's figures, This fsomowlmt largo increase is mainly duo to the acquisition of our new promises in Collins Street, Melbourne (to' which I roforred last year), -and also to tho purchaso of a central site in Sydney, which will onablo the Bank to eroct suitable premises of its own in that city. Tho opening of sjeveral new branches and agencies, and tho necessity for the better equipment of our promises at other points in tho Dominion, has entailed cgnsiderablo oxpondituro in building operations, during tho year, Profit and loss—Tho net profits for tho year, after paying tho £40,000 intorest,on guaranteed stock and making all necessary appropriations, including provision for tho Bank's annual grant to tho provident fund and bonus to the staff, as well as allocating tho sum of £20,000 in reduction of Bank 'premises and furniture accounts, amount to £295,270. Adding tho amount brought forward last year (£64,134) and deducting tho amount of interim dividend of 6 per cent on preference and ordinary shares paid in December (£60,000), tho j sum availablo for distribution is £299,- j 405 —as against £270,384 last year. Tho directors now proposo to pay a further; dividend of 6 per cont. and a bonus of 3 per cont on ordinary shares (making 15 per cent for tho year), and a further 4 per cent on preforenco shares (making 10 per cent for the year). Tho total amount distributed to shareholders for tho yoar will therefore be £125,000. Of tho balanco remaining, it is proposed to transfer, as already mentioned, £200,000 to tho re-. 6ervo fund, and to carry forward £34,405. : Tho result of tho year's working, and tho increased dividond now proposed will, I feel sure, bo regarded by shareholders as highly satisfactory. ; This being tho fiftieth year of the ; Bank's existence, tho Chairman briefly ro-. viewed the. history of the institution. It was fifty years ago this month—on 7th June, 1861—that a meeting of colonists : was held at Auckland to consider tho ; project of establishing the Bank of New | Zealand. A committee, of whom Sir ; Jolin Logan Campbell, of Auckland, is j now the only surviving representative, j was appointed to draw up tho prospoctus j and outline the constitution of tho pro- | posed Bank. Tho first meeting of pro- j prietors was. held on October I,_ 1861. Reference was made to tho prosperity en- ' joyed by the Bank for many years and to the adverso conditions which eventually brought it to tho verge of disaster, necessitating the Government the assistance of the Bank. As a result, of that assistance and the prosperity New Zealand subsequently enjoyed the Bnnk had retrieved its fortunes, Its advance-

Mont, though slow at first, eventually developed inloNi career of rapid progress which lias culminated in the splendid position in which tho Bank stands to-day. Continuing, the Chairman said:—Since tho re-arrangement of 1895, tho Bank's profits have been as follows:—At 31st March,- 1896, £132,193; 1897, .6136,891; 1898, £172,400; 1899, £191,420; 1&00, £242,520; 1901, £300,242; 1902, £289,502; 1903, £290,590; 1904, £292,803; 1905. £320,908; 1906, £330,330; 1907, £350,880:' 1908, £369,923; 1909, £368,150; 1910, £314,386; 1911, £355,270. This large sum has been utilised principally as follows: In payment of interest on guaranteed stock £1,019,005 In payment of dividend— On preference shares held by Government 346,452 On ordinary sharps 411,445 Payment to A.R. Board in reduction of deficiencies on assets ... 1,247,699 Payments in augumentation of reserve fund 918,705 Amounts written off— B.N.Z. Mates Co., Ltd., assets in liquidation 139,988 B.N.Z. Estates Co., Ltd., dobonturo conversion account 58,313 Bank promises and furnituro 207,808 Colonial Bank purchase, goodwill 75,000 Tho capital of tho hank, as fixed by legislation passed in 1903, is, now as follows Capital stock (guaranteed by the N.Z. Government) £1,000.000 75,000 profereneo shares at £6 13s 4d each, issued to tho N.Z, Government .; 500,000 150,000 ordinary shares at £6 13s ; 4d each, issued to ordinary shareholders 1,000,000. (The second call of £3 6s 8d per share made in 1896 was treated as a first, instalment of the £6 13s 4d.) The residue of the Assets Realisation.. .Board properties now stands at £37,813 only, and the value of the assots repre-.; scnting the amount affords an ample;, margin. 'S In view of the groat .serious reverses through which the Banii?; has passed, the position in which ituiow" stands is little short of. surprising, raiid'. must afford' shareholders in this jiih'ilee : : yoar ground for much satisfaction. With •practically nothing now on our hooks of a dead or unproductive naturo, the Bank's resources are, to tho fullest possible extent consistent with safety and stability, revenue producing; and in ordinary? ciimstaiices there is nothing to iiitei:.fore: : with its continued progress and pro-, sperity. Directors.—Tliero has been no change in the personnel of the Board since last we met. Messrs W.'H. Quick and J. B. Reid were appointed directors of the Bank by th'o Government for' a further term of two years as from Ist April ultimo. One of the shareholders.' representatives, Mr William Watson, is at present in England, having left, tlio Dominion in April. He i 6 expected:, toreturn hither about the end of the year. During his sojourn in London he \vijl;bo; : associated _ with our Board in that ..icity'',:' and, in viow of his long and varied' experience as a banker in this and countries, I am sure he and the members of the Board will derivo considerable benefit by_ an interchange of ideas ion finance and other matter). It is my pleasing duty to again express oui' keen appreciation of tho greal care and attention devoted to tho Hank's "in-~ tercsts by the London Board of Directors. Staff—lt is gratifying to t.estify.toiico more to Ihe loyal and eflicient manner in which our staff, in New Zealand, .An?, tralia, Fiji, and London have carried: out their responsible duties. You will, [ know, endorse these remark's by a : cfcord« ing to them a hearty vote of tha::ks;'' To mark this our jubilee year in a practical manner, tho Board has already paid the stafl iv bonus of 10 per cent, on I heir •salaries for tho year endod 31st March. Recognising the importance of attracting to tho service well-educated and desirable youths, the Board 'has rocontiy revised the salaries payable to junior o(licers. : '. Lnder the new scale, an officer of fair' average ability, industrious and ambitious, can rapidly improve his status: Whilst dealing with this question, we havo not been unmindful of tho claims of our senior officers, and havo rewarded special merit, wherever it has been sho\V : ii, With some knowledge of tho subject. On which I am speaking, I have no hesitation in affirming that our service to-day is one of the most attractive in Australasia, 1 now formally beg to move the. adoption of the report, and balance sheet, >f tlio report bo adpoted, the dividend, and bonus proposod—namely, 4 per tent on Preference Shares, making 10 per cent. for tho year, and 9 per cent on Ordinary Shares, equal to i 5 per cent, for thesame, period—will be payable in Wellington,6n, Monday, 19th instant, and at Branches, on receipt of advice—Tlio report was adopted. ©