THE BANK OF NEW ZEALAND.

New Zealand Herald, Volume LVII, Issue 17490, 7 June 1920, Page 4

THE BANK OF NEW ZEALAND.

The record of another successful year's operations is set forth in the annual report by the directors of the Bank of New Zealand. The year's profits are shown as £1,376,833, an increase over last year's return of £159,685; against this thero are increases in salaries of £27,790, in general expenses of £30,415, and in rates and taxes of over £70,000, tho net profit for the year being £419,0-16 as compared -with £388,022 in 191819. The dividends and bonuses proposed by the directors, being 2| per cent, higher than last year's, will absorb the extra profits, and after again transferring £150,000 to the reserve fund there will be the same amount, £146,520, to carry forward as the balance of March 31, 1919. The strength of this important institution is evident from the balance-sheet, which shows assets now exceeding £50,000000. In accordance with the bank's policy, it has further increased its assets in London, the holdings under this head now amounting to £19,622,411, an increase during the year of nearly £6,000,000. The influence of prevailing conditions upon the note circulation is apparent, the issue by the bank totalling £5,765,337 - 10s which is greater by £2,037,088 10s than the amount in circulation a year ago, and is a much larger increase than was shown in cither of, the two previous years. Against its note issue tho bank holds coin and cash balances amounting to £8,371,535, the increase on this item being £2,453,080 ■or over £400,000 more than the increase in note circulation. The reserve fund will now stand at £2,500,000 and no better proof than the maintenance of such a fund could be given of the sound position of.tho bank and of its ability to assist legitimate enterprise for the agricultural and industrial development of the Dominion.