THE NATIONAL BANK OF NEW ZEALAND.

New Zealand Herald, Volume XI, Issue 4045, 29 October 1874, Page 5

THE NATIONAL BANK OF NEW ZEALAND.

By the Suez mail we have received a copy of the report and balance-sheet of the National Bank of New Zealand, to be presented to shareholders at the second general meeting, to be held on the 4th Sept. Thegross profits for the year ending 31st March amounted to £44,460 0s Sd, added to which is the balance of last report, £1,102 os 9d, making together £45,50S G3 sd. The charges, including remuneration to directors and at head office, amount to £38,725 5s lid; rebate on bills not due, £5,277 14s 2d ; and the balancc left to be carried forward to next account, C 1,505 0s 4d. From the balance sheet it would appear that there is still an amount of £4,450 19s lOd for preliminary expenses not provided for, and that the landed property, premises, furniture, Sec., represent £47,499 4s 3d, which, considering the infancy of the institution, and that, its chief premises arc only rented, appears a very large sum. Shareholders, however, will be in a better position to judge of this than wo are, and though it could not be expected that a brilliant result would be exhibited after the lirst full year's operations, we imagine the general feeling among those interested will be that 'die expenses are out of all proportion, to the protits. " Report to be presented to the shareholders at the second ordinary general meeting, to be held at the City Terminus Hotel, Cannon street, London, on Friday, 4th September, 1674, at two o'clock in the afternoon. "The directors now beg to report to the shareholders upon the Bank's operations in Loudon for twelve months to olst March last, and in New Zealand to the same date for tlie period the Bank has been actually established there. "During the lirst session of the Parliament of New Zealand alter the Bank was established in the colony, an Act of Incorporation was obtained, authorising the Company to issue notes, which iinally became law on 3rd September, 1573.

"The business of tile Bank of Otago in tl:j colony was taken over on Ist July, 1873, and tile sum of £159,597 lis 2d representing it assets taken over, with interest thereoil from that date as agreed, has been paid to the liquidate"? in London. The present balance-sheet, therefore, embraces the result of only nine months' working of that business, carried 011 at thirteen offices, which are still open as branches of this Rank. Of the other branches six have been in operation for an average period of ten months, and the remaining eleven for four months. Tlie latter, as might be expected, have hitherto been only a seource of expense.

"Notwithstanding these disadvantages, the progress of the general business has been rapid and considerable, and sufficiently remunerative to provide for the comparatively heavy charge of a concern in course of development. The gross profits, including £1,102 os 'Jd brought from last year, and after deducting interest and making provision for bad and doubtful debts, amount to £-15,508 Gs sd. From this sum there has to be deducted £30,515 Ss 4d for current charges and amount written off for preliminary expenses, £2,20'J 17s 7d for interest paid to the Bank of Otago on its assets taken over, £5,"277 14s 2d for rebate on bills discounted not due at 31st March, leaving £ 1,51i. j (is 4d, which the directors recommend should be carried forward. They have thought it more satisfactory to deduct rebate as above, although aware that it is by 110 means the invariable practice o£ colonial Banks to do so. The amount., as will bo seen, is -5,277 14s 2d, equivalent to nearly 3 per cent. 011 the capital paid up at the commencement of the financial year. " During the past year the directors have devoted much attention to the establishment of a business connection 011 the footing of agency with banking and other firms throughout the United Kingdom, British colonies, and foreign countries. Considerable transactions have already resulted, and the directors look forward to this with much satisfaction as a source of future profit. " The directors have pleasure in reporting that Mr. John Bridges, late of Wellington, New Zealand, has joined the Board. His long residence in Australia and New Zealand, and his large and varied banking experience there, will, they believe, be of considerable service to the Bank. "In terms of the articles of association the auditors now retire, but are eligible i'or re-election.

'• The prosperity of Now Zealand continues unbroken. The energy with which the country is being opened up by roads and railways, and the encouragement given to the introduction of emigrants of all classes, cause a eoustaut increase in the wealth of the colony and the volume of its business transactions. The directors have every reason to hope that they will be able to secure fur this JJauk its full share of the advantages which must accrue from the general well-being. *' Oiakles Mag>;lac, Chairman. <{ 37, Lombard-street, E. C., {{ London, 25th August, 1874. *' Bala.scl-.siiei:! to 31sr Makcu, 1574. ])r. £ s. d. £ 5. (1. To Capital— .£3 10s p-.r share on 06.007 shares allotted iu Loudon 233,334 10 0 il2 10s per share ou 33,33*4 tljart'3 allotted in New Zealand .. .. 53,332 10 0 Less—Calls unpaid 1/223 0 0 52,109 10 0 315.444 0 0 Note in circulation 112,724 0 0 Liabilities uu deosit and current accounts .. .. G50.752 12 1 Bills payable and' other liabilities.. 133,095 12 3 Bills received for colh.ctit'u .. 100,379 11 i Profit and Is,ss - balance of that account ou 31s* of March, 1574 .. 1,503 t3 4. Kobnte on b:l!s dl-s----counU-d r.ii'l ::ot yet due .. .. 5,277 14 2 0.543 0 0 £1.349,541 1«J 2 Cr. 5. d. r.v ca h with binkers and at branches rJS,S'»i 11 3 "Bills loans, current accounts, .i lva:v.-_.s ou securities, oce. JOS.GT*) 9 -i fjilh receivable. por contra .. 109,379 11 4 L'ind-d property, premises, furniture, futliigs *-c. .. .. .. 47,499 4 5 Preliminary exp-rncs in London and New Ktiiki.'id, ar.d cost of sending out oilicers .. .. .. .. 4,450 19 10 £1,340,341 Id 2 ri.oriT AXD LOSS ACCOUNT. Dr. £ s. d. To cha-ges, iLclv.uing rent, tax*.*, salaries, remuneration to directors, and all other cxnen-es at li-Jj'.d otliC'"; and branches .. .. 50,020 17 3 Preliminary- and other ex]--;n ; es .. 494 II 1 Interest r ccrued, due to Hank of «'t:ign sr. March 3Ut. la7V .. 2,209 17 7 Rebate on bids dis- jl counted and not due at 31st March 5,277 14 2 balance tan-led down .. .. 1.505 0 4 £45,50S S 5 Cr. s. d. By B.vbinco. "Ist April, 1573 .. .. 1,102 5 9 Gross profit, aftcrueducting interest on deposit and current accounts, niakir.u prcvMon for all bad and doubtful debts .. .. .. 4i,i66 0 S £;s,3CS 0 5 By balance b:ouvi\t down .. •• 1,005 0 4 Audited ai'd found correct according ro the bojks and v>»uchc'f> «it the head oitice, a?;d to the certified b.ihitico boo.; ' ve*o- ivyl from ttie several blanches. QCILTiK, iiALi. A.VU Co. August 1", 1574.