NATIONAL BANK OF NEW ZEALAND.

New Zealand Herald, Volume XLII, Issue 12932, 31 July 1905, Page 6

NATIONAL BANK OF NEW ZEALAND.

ANNUAL REPORT.

[I'KOM OCR OW'N CORRESPONDENT.] London, June 23, Tins afternoon I have received from the secretary of the National Bank of New Zealand a copy of the directors' report, which will be presented at the 33rd ordinary general meeting of the'bank, to be held on July 4, at Winchester House.

The directors state that the gross profit for the year, after deducting interest on deposits, making full provision for bad and doubtful debts, applying £5000 in reduction of premises and furniture, and contributing £3500 to the officers' pension fund, amounts to £125,848. There is also at the credit of profit and loss account the sum of £8403, brought forward from, the previous year, making a total of £134,251. From this amount has to be deducted tho expenses at head offices and branches, £73,511, and rebate on bills, £2430; this leaves'a balance of £58,309. The directors recommend that £20,000 of the above balance be transferred to reserve fund, which will then stand at £230,000. An interim. dividend at .the rate of 10 per cent. per annum was paid last January, and the directors now propose that a further dividend at the same rate be paid, making a dividend of 10 per cent, for the year. In addition, the directors recommend that a bonus of 2 per cent, be declared on the paidup capital of the bank, making the past year's return 12 per cent, per annum. These payment's will leave a balance of £8309, to bo carried forward to the current year. It is added that the present cauital of the company is £1,750,000, divided into 100,000 shares of £7 10s each, and 100,000 shares of £10 each. None of the latter have been issued, but the directors have had under consideration for some time past the desirableness of adopting some plan whereby the unissued shares should be conformable in denomination with tho issued shares. They have accordingly decided to recommend that the unissued shares of £10 each should be subdivided into 100,000 £7 10s shares, and 100,000. £2 10s shares. To carry out this object a special resolution of the shareholders is necessary, so a special meeting will be held at the conclusion of the annual general meeting for the purpose of considering, and, if thought tit, of passing a resolution enabling suoh subdivision to bo made. Should the resolution be passed and confirmed at a meeting to be held subsequently, of which due notice will be given, the shareholders will be asked at such confirmatory meeting to pass a further extraordinary resolution whereby of the 100,000 £2 10s shares, 90,000 shares, part thereof, shall be consolidated into 30,000 £7 10s shares, and tho remainder cancelled. The. effect of the passing of these resolutions will be that tho total nominal capital of the company will then consist of £1,725,000, divided into 230,000 £7 10s shares, of which 100,000 £7 10s shares only have been issued, leaving 130,000 £7 10s shares for future issue by the board as and when required. Tho two directors retiring on this occasion are Mr. Robert Logan and Mr. Edmund Charles Morgan. Both gentlemen offer themselves for re-election.

The resolution to be put at.the special meeting on July 4- runs thus: "That each of the 100,000 unissued shares of £10 each in the capital of the. company be divided into two shares, one of £7 10s and the other of £2 10s."