BANK OF NEW ZEALAND.

Manawatu Standard, Volume LVII, Issue 155, 2 June 1937, Page 4

BANK OF NEW ZEALAND.

NET PROFIT RISES TO £600,000. INCREASE dTEXPENSES. A net profit of £600,008 4s 6d for the year ended March 31, 1937, is shown in tho accounts of tho Bank of New Zealand, which were issued yesterday. This is an increase of £34,826 bn the not profit

for the previous year. Gross earnings of £1,606,342 show ail inefcaso of £07,359, but expenses, including rates and taxes, at £943,801, are higher by. £62,532. Rates and 'taxes amount to £323,289, an increase of £32,097. Dividends on Government preference shares at £150,000, aiid on the C longterm mortgage shares held by tho Government, at £14,062 10s, are Unchanged.

Ordinary shareholders again receive £375,000, their dividend being unchanged at 10 per cent., whilo holders of D long-term mortgage shaves again receive £35,156 ss, at the rate of 7j per cent, per annum. The report of tho directors, which is to be presented at the ordinary general meeting of tho proprietors on Friday, June 11, states that the profits, after providing for expenses of management, and for all bad and doubtful debts, and other contingencies, and after making provision for tho annual donation to 'tho provident fund, is £600,008 4s 6d; to this has to bo added the balance brought forward from lash year, £339,100 7s 9d, making a total cf £939.108 12s 3d. From this has been paid: Dividend On prefororico A shares, £50,000; ' interim dividend on C long-term mortgage shares, £7031 ss; interim dividend on D long-term mortgage shares. £17,578 83 6d; interim dividend on preference B shares, £31,250; interim dividend on ordinary shares, £187,500; a total of £293,359 7s 6d, . leaving available for distribution, £645,749 4s 9d. This the directors propose should bo disposed of as follows: —Dividend on C long-term mortgage shares at 6 per cent, per annum, £7031 ss; dividend on D longterm mortgage shares at 7i_ per cent, per annum, £17,578 2s 6d; dividend on preference B shares (making £IOO,OOO for the year), £68,750; dividend at rate of 5 per cent, on ordinary shares (making £375,000 for the year, equal to 10 per cent.), £187.500: leaving balance to be carried forward, £364,889 17s 3d. These dividends arC to be paid in Now Zealand currency. During the year agencies were opened at Mount Maunganui and St. Heliftr’s Bay. l Porigaroa branch was converted into ail agency, and Matnaku agency was closed. COMPARISON OF RESULTS. The following tablo gives a comparison of the bank’s profits,: expenses and appndnriafions for the last three vears : I

BALANCE-SHEET CHANGES. Tho paid-up capital of the bank is unchanged at £6,328,125, and is made up as follows:—Preference A fully-paid £1 shares issued to tho New Zealand Government, £500,000; C long-term mortgage fully-paid £1 shares issued to tho New Zealand Government, £234,375; D long-term mortgage fully-paid £1 shares, £468,750; preference B fully-paid £1 shares issued to the New Zealand Government, £1,375,000; ordinary fullypaid £1 shares, £3,750,000. The reserve fund stands unchanged at £3,575,000, which _is invested in British Government securities. After payment of final dividends for the year, the aggregate of capital, reserve fund and undivided profits will be £10,268,014, as compared with £10,242,225 last year, an increase of £25,789 .Total assets now amount to £51,830,227. compared With £51,811,281 a year ago, an increase of £18,946. The items “bills payable and other liabilities, including provision for contingencies,” stands at £4,084,806, compared with £3,759,174, an increase of £325,632. Reserve for taxes is unohunged at £426,000.

Deposits total £35,636,112, as compared with £35,740,430 last year, a decrease of £104,31,8. Advances, including bills discounted. amount to £23,663,948, compared with £22,179,373, an increase of £1,484,575. Bills discounted at £801,729 show an increase of £306,032, while other advances, etc., at £22,862,219, aro higher by £l,178,543. The bank’s own notes still outstanding in circulation amount to only £628, as against £324,452 on March 31, 1936. London office acceptances under credits total £62,440, an increase of £25,424. On the assets side, coin, Reserve Bank notes, and deposits with bankers, total £7,929,471, as compared with £6.913,141, an increase of £1,016,330. Government notes —Commonwealth, Fijian . and Samoan—total £144,- . 784, an increase , of £35,829. DECREASE IN LONDON FUNDS. Funds in London, including bills receivable and in transit, total £8,461,345, as compared with £10,447,291 last year, a decrease of £1,985,946. The above total in ; eludes £7,122,420 in money at call, and short notice. Government securities . and other securities in London, and £1,338.925 in bills receivable in London and in transit. / The bank’s holding of New Zealand se curities amounts to £4,626,094, as‘ compared with £3,397,058 last year, an increase of £229.036. The bank’s holding of other public securities, the figure for last year being shown in parentheses, aro as follow : —Auslralian Government securities, £2,995,900 (£4,587,813), a decrease of £l,591,913; municipal and other local bodies’ securities, £335,024 (£318,346), an increase of £16.678. Landed property, premises, etc., are shown at £684,961,_ compared with £673,143 last year, an increase of £ll,Blß. The balance-sheet of the long-term mort-

gage department shows capital at £703,125. and debenture stock £607,050, an unchanged total of £1,310,175. Loans are shown at £938,116. a decrease of £51,020. Transfers to the banking department are £372,059, compared with £321,039 a year ago. RATES AND TAXES HIGHER. The profit and loss account shows that ■ salaries and allowances at head offices and 226 branches and agencies total £553,073, as compared with' £526,182 last year, an increase of £26,891. Remuneration of directors, including London board and local directors in Australia, accounted for £8530, as compared with £10,049 a year ago, a decrease of £1519. General expenses are shown at £118,461, an increase of £5213, while audit oxnensea at £2980 show a decrease of £l5O. Rates arid taxes absorbed £323,289, as compared with £291,192, an increase of £32,097.

Gross profits Interest on stock Salaries Other expenses ' Rates and taxes 1934-35 1935-36 1936-37 £ £ £ 1,468.371 1,508.982 1,606,341 6,476 — — 520.912 526.182 553,073 130,796 126,427 129,971 231 439 291,192 323,289 Net profit Brought forward 578,748 343,609 565.181 348,138 600,008 339,100 922,357 913,319 939,108 Dividends— Mnrll"-' — Hanking capital— Govu... Ordinary M 49,219 150,000 375,000 49,219 150,000 375,000 49,219 150,000 375,000 Carried forward 348,138 339,100 364,889