AUSTRALIAN BANK MERGER.

New Zealand Herald, Volume LXVIII, Issue 20967, 2 September 1931, Page 11

AUSTRALIAN BANK MERGER.

ECONOMY IN EXPENSES. SHARES RISE IN SYDNEY. COMPLETION EXPECTED SOON. By Telegraph—Press Association—Copyright. (Received September 1. P. 15 p.m.) SYDNEY. Sopt, 1. It is expected that one result of Hie merger of the Bank of New South Wales and Ihe Australian Bank of Commerce will be considerable economy in overhead expenses, although adjustments of the directorates, staff and building arrangements have yet to be made. Mr. A. C. Davidson, general manager of the. Bank of New South Wales, says no definite date for amalgamation has yet been fixed, but it will be at an early date. It is intended that after completion of the merger the banks shall operate as one. institution. / Hie Australian Bank of Commerce had 39 city and 87 country branches in New South Wales. It also operated in Queensland, where it had 23 branches, and it also had a few branches in the other States. Tho bank paid a steady dividend of 8 per cent, until June, 1929, when the rate was reduced to 7 per cent, in 1930, and 4 per cent, in the last financial year. Tho deposits at tho end of June of the Australian Bank of Commerce were £11,086,000, and the advances £11,420,000, as against which there were liquid assets worth £3,440,000. The bank's total assets were £15,265,000 and the profit last year, after paying taxation of £67,642, amounted to £84,904. A sharp rise in the price of shares of tho Australian Bank of Commerce was recorded on the Sydney Stock Exchange to-day, as a result of the merger. The market for scrip closed yesterday at 14s 2d, and gradually rose to 16s. Bank of Now South Wales shares advanced by 2s . 6d to £2B ss. KEEPING DOWN COSTS. ECONOMY IMPERATIVE. COMMENT IN THE TIMES. (Received September 1, 11.25 p.m.) LONDON, Sept. 1. The City editor of the Times says doubtless economy in working is ono of the objects of the banking fusion between the Bank of New South Wales and the Australian Bank of Commerce, as the banks are experiencing conditions which render economising imperative. Profits have fallen, and may fall further, while taxation is increasing.