THE BANKING YEAR.
'OPERATIONS DURING 1934. DECLINE IN NET PROFITS. The aggregate net profits of the 11 trading banks operating in Australia and New Zealand amounted to £2,653,846 during 1934, a decrease of £31.767 on the previous year’s total. Decreases in profit amounting to £57,662 were shown by six banks and increases amounting to £25,895 by five. The results, which are summarised in the Australasian Insurance and Banking Record, cover Imlanee-shcets published between October 16, 1933, and September 30, 1934. Aggregate net profits anil dividends and the proportion for the past six years compare as follows: , Ratio Net Profits Dividends p.c.
As compared with the 1928 returns, the net profits for 1934 show a decline of £3,750,572 and the diivdends a decrease of £2,725,468. The ratio of net profits to shareholders’ funds has declined fairly steadily since 1929, when it was 7.69 per cent, 'lho movement was as follows:—1930, 6.99 per cent; 1931, 5.16; 1932, 3.05; 1933. 3.23; 1934, 3.19. The average rate of dividends on paid capital during the past three years was as follows: —1932, 6.39 per cent; 1933, 5.59; 1934, 5.47. The rate on totai shareholders’ funds (paid capital plus reserve funds and undivided profits) compares as follows: —1932, 3.49 per cent; 1933, 3.06; 1934, 3.00. Commenting on the figures, the journal states that causes have continued at work to keep banking profits at a low level in relation to tbe shareholders’ funds engaged in the business. One of the principal causes is the decline in lending rates, while the lower rates of interest on fixed deposits became effective comparatively slowly after the terms for deposits made some time ago at higher rates ran out. Trading activity has shown some improvement, evidenced lor one thing by the . overseas trade returns. Taxation lias been somewhat less onerous, but the effect of this has usually been counterbalanced by other factors.
1929 .... 6.359.181 5,173,562 81.32 1930 5,908,074 5,038,312 85.28 1931 .... 4,404.573 4.164,318 94.55 1932 .... ...... 2.572.771 2.937.758 — 1933 .... 2,685,613 2,541,425 94.63 1934 .... 2,653,846 2,487.988 93.75
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https://paperspast.natlib.govt.nz/newspapers/MS19350125.2.43
Bibliographic details
Manawatu Standard, Volume LV, Issue 49, 25 January 1935, Page 5
Word Count
334THE BANKING YEAR. Manawatu Standard, Volume LV, Issue 49, 25 January 1935, Page 5
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