Bank of New South Wales

Manawatu Times, Volume 64, Issue 279, 25 November 1939, Page 8

Bank of New South Wales

ANNUAL MEETING HELD At the ordinary meeting of tho Bank of New South Wales, held at the head office, Sydney yesterday, the chairman, Mr. Robert W. Gillespie, president of the bank, said:— In presenting to you tho balancesheet and accounts for the year ending September 30 last, I have to draw your attention to a change which has been made. We havo decided to follow the example of the great English banks in amalgamating two of tho items on the liabilities side of the balance-sheet. Formerly these were shown separately as ‘ ‘ deposits, accrued interest, and rebate” and “ bills payable and other liabilities (which include reserves held for doubtful debts, and otner contingencies).” The wording of the new item is now shown as ‘ ‘ deposits, accrued interest, rebate, bills payable and other liabilities, including reserves held for doubtful debts and other contingencies.” Last year the total of these two items was £108,412,000. This year tne amount is £111,688,000, showing an increase of £3,276,000, and giving evidence of the continued growth of the bank. The total of the balance-sheet, £130,SOB,OOO, show's an increase of £3,744,000, which we feel can be considered very satisfactory. Turning now to the assets side of the balance-sheet, the chief item is that oloans and advances, £93,077,000, which shows an increase of £4,337,000. This reflects the demands A'hich have been made upon us by all sections of the community, and which are due chiefly to two factors. One is tho low prices which have been ruling for our exports in world markets, coupled with the effects of drought conditions which havo now passed. The second is the need for rearmament and preparations for war. The total of our liquid assets at £30,645,000 is some £1,187,000 lower than a year agp, but with tho turn of the season and the completion of arrangements for tho sale of our products there should be an early increase. While the difference in this aggregate is comparatively small, there are some changes to w T hich I would draw your attention. The item of coin, etc., £13,016,000, is some £1,359,000 lower; Treasury bills at £5,205,000 are £4,050,000 higher, while investments in Government securities, £2,634,000, are £3,161,000 lower than N a year ago. This alteration has been made as part of our plans to place tho whole of the resources of the bank at the disposal of the Government and tho Central Bank in the emergency we are facing. The other alterations are small. Bank premises stand at £3,300,000, an increaes of £150,000 on the year. Contingent liabilities, £3,786,000, are £444,000 higher than 12 months ago. The balance of the year’s profits, £550,876, shows an increase on the year of £3041. Your directors recommend a payment for the fourtn and final dividend at the rate of Gs per share in Australian currency.