BANK OF NEW ZEALAND.

Northern Advocate, 2 December 1911, Page 3

BANK OF NEW ZEALAND.

HALF-YEARLY MEETING.

SUBSTANTIAL INCREASES

(Per Press Association.)

WELLINGTON, Dec. 2.

At the half-yearly meeting of the Bank of New Zealand shareholders yesterday, Mr Martin Kennedy, Act-ing-Chairman oi Directors, said:—

Gentlemen, —This being the statutory Half-yearly meeting of the Bank, as you are aware, no statement of accounts is presented.

principal business is the electionmf a Director to fill the vacancy caused by the retirement of Mr Martin Kennedy,by effluxion of time, but

who, being eligible, offers himself for re-election. He. has given the necessary notice, and, there being no other nomination, I how declare him j3uly elected.

You will be glad to learn that the half-year's profits have been well sustained, i and compare favorably with those for corresponding periods of recent yearns. Having reason to anticipate that the second half of the year will prove , proportionately good, we fcave declared an interim dividend of 8 per cent, oa all the shares of the Bank, ; which will be payable at the

Head office, Wellington, on Monday, /4th inst., and at Branches on receipt of advice. '

The Chairman, Mr. Beauchamp, and !my colleague, Mr Watson, obtained leave of absence from the Board and left for London—Mr Watson on 6th April, and Mr Beauchamp on 23r<? June. Mr Watson, is expected back this month r and the Chairman in Feb. ruary next. Both gentlemen have been associated with the London Board, and doubtless will have rendered good service to the Baak their absence from the Dominion. On the eve of Mr' Beauchamp/s departure from the Dominion, the Board appointed Mr M. Kennedy to be Acting-Chairman in the absence of Mr Keauchamp.

It is with very deep regret that I , liave to announce the death, in September last, of Mr W. H. Quick, who had occupied a seat on the Board for four and a half years., The Board has placed on record its appreciation of the good services rendered to the Bank by Mr Quick in the capacity of a Director. ;

During the year there has been a | good demand for money, and this de- i mand has been well responded to by the Banking Institutions in the Do- , minion. The following comparisons of the advance figures for the September quarters c f : 1911 and 1910 shows the increase for the twelve months:— Advances and Discounts. 1911. 1910. Bank of 'New Zealand . . . . 8,289,639 6,966,691 .Union Bank of Australia, Ltd. .. 3,540,832 3.222J958 Bank of N.S.W 3.111,352 2,516,493 Bank of Austratralasia ..3,250,784 2,794,888 National Bank of '■■ N.Z., Ltd. ..'3,239,053 2,676,566 £21,431,660 £18,177,59G

—an increase of £3,254,064. It will be observed from the foregoing figures that we have obtained a ( fair proportion of the increase; and Athis, in view of the keen competition '' for advance business, may be considered satisfactory.

Some comment has recently been mad.c on the position shown by this Bank in the Government. Quarterly Returns, in that the assets in the Dominion, as shown, were less than the liabilities. To any person not familiar with Banking finance, the inquiry would seem quite natural, and as every person in the Dominion is concerned in the affairs of the Bank, it will perhaps not be out of place for

me to explain that, in view of the

large amount of our deposit liability, ■^J' - it is essential to a policy of prudent and safe banking that a proper proportion of our assets be kept in a

liquid form, and as this cannot be accomplished i; the Dominion in a remunerative manner, we find it advantageous to hold such funds in London where they are revenue-bearing and

whence they can be' transferred expeditiously whenever they may be required.

I have much pleasure in stating that, by a recent sale in Auckland, we have disposed of the largest of the remaining Asset;-, Realisation Board properties, and that those left in our hands now represent only a little more than £1,000 in value. This will, I am sure, be satisfactory information for shareholders. I may mention that these Assets, when the Board was constitued in 1895, amounted to £2,680,000.

You will be interested to hear that, owing to the considerable demand for extended banking facilities, we have since Ist April last opened, - { n various parts of the Dominion, four new branches and six new agencies, and have converted five agencies into daily branches. Regarding the trade and commerce of the Dominion, the following figures show the relation our imports bear to our exports over a period of five years:— Excess of Exports Imports Exports £ ,£. \ £ 1906-7 19,891,846 16,071,887 3,819,959, 1907-8 16,370,587 17,750,868 — 1908-9 18,700,156 14,916,005 3,784,151 1909-10 21,958,964 16,101,888 5,857,078 1910-11 19,912,656 18,611,960 1,300,698 Excess of Imports .. £1,380,281 (The above figures are for the period .ending 30th Septefciber in each , year.) As regards the Commercial outlook: Trade in the Dominion, which has been somewhat slow throughout the year, I am glad to say shows- considerable revival. The exports for 1909----10, which was easily a record for the Dominion, have not been maintained* for 1910-11, but the two years taken together show a total of £4],871,620 —an excess over imports of £7,157, 774, or equivalent to an excess for each of the two years of £3,578,887; or, if we take the last three years combined, the excess of exports over imports leaves an average balance of £3,647,308 for each year, which may be regarded as very satisfactory.

I deem it desirable, however, to call attention to the increase in advances of three and a quarter millions for 1911 over 1910, and to the.-growth, in the import figures for 1911 of £2,500,----000 over the previous year. These movements, -if continued, will naturally lead- to stringent monetary conditons, and it vould be wall i!iit merchants, . traders, investors in land, tmd the community in general, should keep that contingency in view.

With regard to the Industrial outlook, it is to be regretted that, in some parts of the Dominion, the lambing this season has not been as good as usual. Taking the Dominion as a v, hole, however, the result is generally up to the average. The sheep returns, just published, give no increase, but show a slight decline of 273,494. This result may be taken as the natural outcome of the subdivision of sheep stations, and the more valuable portions of such estates being used as dairy fai*ms; ?,nd it is gratifying to notice the great expansion of dairying in the Dominion and the high level maintained in prices of butter and cheese.

Agriculturists, too, have reasonable justification for anticipating a satisfactory season, with fair prices for the staple products of the Dominion.

The wool market which for the past few months has been somewhat depressed, is showing signs of revival. The prices so far realised at the current London sales closing quotations of the previous series. With a more settled state of European affairs there would seem to be reasonable ground for the anticipation of generally improved trade conditions, and as a consequence possibly a further advance in wool prices. In that case the exports from the Dominion for the year ending 30th September next would probably equal, if not exceed, the average of the last three years, coupled with an easier position in the Australian Commonwealth that will most likely follow on the recent satisfactory rainfall that has taken place there. Such an improvement would no doubt go far towards relieving the apprehended momentary stringency in Australia next year.

Before sitting down allow me to thank you sincerely for again electing me unopposed as one of your two representatives on the Board o£ the

Bank. I accept it as a very high compliment indeed, especially having already completed a period of seventeen years in that capacity. During that period, the progress of the Ban, has been truly phenomenal. For the first year, ending 1895, the ba?an» sheet showed a net loss of £37,356. The next year gave a net prolir of £132,193, with progressioin each subsequent year, and the last five years have averaged upwards of £351,000; and the deposits, which were Wi £7,222,202, have gone on i'iere;isin§ and at 31st March last stood at £17,----886,746. Truly it can be said, the progress of the Dominion its also thi; progress of the Bank.

CONGRATULATIONS

After the Acting-Chairman's address, Dr. Knight congratulated the Acting-Chairman on *his re-election, and said it was satisfactory to see a representative of the shareholders' interest in the Board at the head of the Bank's affairs.

Mr Kennedy niade acknowledgement, and regarded his position as a compliment ou behalf of the shareholders. It might also be taken as an indication that the lines between the shareholders' and the Government's interest in the Bank would 'not be so strongly drawn. Both interests were alike, while not equal. However, it had to be remembered that the Government shares were preferred shares. ■ . No•>other reference was made, and the meeting concluded amid hearty applause.