Bank Profits Fall

Manawatu Times, Volume LIV, Issue 7191, 24 June 1933, Page 7

Bank Profits Fall

NEARLY HALVED IN FOUR YEARS Times Special WELLINGTON, Juno 23. In referring to the Bank of New Zealand’s balance-sheet at to-day’s meeting of shareholders the Chairman, Mr R. W. Gibbs, said that although an increased profit of £7247 was shown, it was not due to ordinary banking operations, but to advantageous realisations of some of the Bank’s overseas investments and certain other items of an exceptional and non-re-curring nature. The result of ordinary operations showed a reduction on tho past two years, as might be expected. He drew attention to the variation in the profits of the Bank during recent years:—1930 £948,534 1931 £845.813 1932 £587,023 1933 £594,270

These figures conclusively prove (said Mr Gibbs) that tho Bank is making no undue profits, but, in common with most institutions, is suffering its full share of the burden of depression. Our payment to tho Government by way of dividend for the year is £242,708 And by way of taxes £408,250 Total £650,958 In referring to the Chairman’s remarks, Bir George Elliot said: Iho business of banking is just as sensitive to dull times as any other trade or profession; it is therefore the essence of careful management to make provision in good times for losses that sooner or later must take place when the pendulum swings from good times to bad times. That the pendulum has so swung is evidenced by the balance sheet we are now considering. It is unfortunato that success in any dlrectiton seems to' be unpopular in Now Zealand, ami owing to its wonderful recovery aim largo profit earning capacity, the Bank of New Zealand has not escaped tho blight of carping criticism. In view of its falling profits however, it may yet become a truly popular institution. That we have so far weathered tho economic storm of tho past few years is duo, in no small measure, to the strong financial position of the Banks and other lending institutions trading in New Zealand, and this should never be lost sight of. The fact that they havo, without straining their finances, been able to write off bad debts aggregating millions of pounds evidences conservative management in the past.