THE NATIONAL BANK.

New Zealand Herald, Volume LXV, Issue 20024, 14 August 1928, Page 7

THE NATIONAL BANK.

YEAR'S WORK REVIEWED.

V,.v. " ;V'-, SLIGHT FALL IN PROFITS. DIVIDEND OF 14 PER CENT. [from our own correspondent.]. LONDON, July 13. The annual meeting of the National Bank of New Zealand was held on July 11. Tho Hon. W. Pernber Reeves; chairman of directors, who presided, gave his usual review of the Dominion s financial and commercial position.

Referring to the report and accounts Mr. Reeves said the paid-up capital was £2,000,000, and the reserve fund stood at the same figure. Note circulation at March 31, £1,173,482, was normal, and had ruled so throughout the year. The average circulation of all the banks in New Zealand during the year was £6.453,265, and they had tho right of issue up to £12,910,992. The relative figures for the previous year were £6,674,000 and £12,818,000 respectively. Liability under deposits and current accounts was £12,088,000, an increase of £805,000 over last year's figures. That was almost entirely in fixed deposits, and reflected the rise in the rate of interest which, in common with other banks in New Zealand, they offered for deposits of two years and upwards. On the other hand, bills payable and other liabilities were down by £629,000.

The Year's Profits. On the assets side, coin, bullion, cash at bankers and money at call showed au increase of £633,000. , Investments had gone up from £1,970,573 to £2,129,749. Bills receivable were £3,732,394, or an increase of £322,000 as compared with March 31, 1927. Advances had dropped by no less than £980,000. The Dominion was only just beginning to recover from the adverse conditions of 1926 and. 1927, and the stabilisation was, he thought, proved in the exceedingly liquid position disclosed in the balance-sheet figures. The net profit for the year was £290,000, as compared with £312,000 m the previous year, and that, after paying a bonus of £15,000 to the staff,, while £IO,OOO had been placed to pension and gratuity funds. Full provision had been made for bad and doubtful debts, out ol the profits for the year. Two Years of Depression. "The fall in our profits, though not large," continued Mr. Reeves, "may cause you to regard the results! of the year's working as somewhat loss satisfactory than those which we are usually able to lay before you. In explanation 1 may point out that the recent improvement in New Zealand trade did not set in until last November. It came at the end of two years of pronounced depression, which naturally affected both our business and our policy. During the year under review we felt constrained to pursue as conservative a policy as was possible, subject to reasonable regard for the interests q£ our clients. The result was the considerable fall in our advances which you hav<? noted in our balancesheet. At the same time, deposits increased.

"Our exchange business at the New Zealand end has been large, reflecting in this the increased value of the country's exports. On the other hand, the diminution of imports into New Zealand, while in itself a necessary step and good for the Dominion, has made the transmission of money from London to Wellington somewhat difficult during the latter part of the year. The exchange rates, too, have been low, and the moderate increase made some months ago came too late to have much effect on the year's profits. I mention these few points- a3 showing some of our passing difficulties, but we have a business which is not only large, but sound; the position of. our bank is excellent, and there is good reason to anticipate that the improving position in the Dominion will be felt by our institution just as it should be felt by others."

Dividend and Bonus, Mr. Reeves concluded by expressing regret that Sir James Coates had had to resign his position as honorary director, for the sole reason that, with advancing years, he desires to be relieved as far as possible from business responsibilities. "Sir James' distinguished career in tho service of your bank and the Dominion is well-known to you, as, indeed, it is to all New Zealanders. We shall greatly miss his wise' counsel, but we trust that for years to come he will be ajple, as a friendly observer, to see the institution for which he has done so much go ahead still further." (Hear, hear.) The chairman moved the adoption of the report; that a dividend be paid at the rate of 12 per cent, per annum for the six months ended March 31 last, together with a bonus .of 2 per cent, for the year, both free of income tax; that the sum of £IO,OOO be placed to officers' pensions and gratuity funds, that the balance of profit and loss account amounting to £165.572 be carried forward. Mr. H. F. Freshwater seconded tho resolution, which was unanimously carried. Messrs. R. D. J Trotter, J/mdsay, E Smith, and Sir A. E. Harris were reelected to the board.