INVESTMENT BUSINESS

New Zealand Herald, Volume LXIX, Issue 21248, 30 July 1932, Page 7

INVESTMENT BUSINESS

DOMINION ASSOCIATION - DIVIDEND RATE REDUCED PROVISION FOR CONTINGENCIES A net profit of £10,971 is disclosed in the sixth annual accounts of the Dominion Investment and Banking Association, Limited, for the year ended June 30. Tho amount compares with £12,251 in 1930-31, and is struck after meeting all expenses, writing off £22 from office furniture and fittings, and effecting due depreciation of doubtful securities. A sum of £IOOB was brought into the accounts, making £11,979 available. The directors recommend that this should be dealt with as follows:—To payment of dividend of 5 per cent on A shares and first and second issues of B and C shares; to reserve, £SOO (makinga total of £4000); to create a contingency, reserve, £2000; and to carry forward T ~ . £IO2B. : The report of the directors states that' in' spite of the continued "state of commercial arid financial depression, the results of the year's trading would have en- . abled the payment of the usual rate of dividend, but the revolutionary tion enacted this year regarding arbitrary; reduction of mortgage interest was a . serious interference with the business of the association. Protests had been nn- . availing The directors hoped shareholders ; would appreciate the prudence and fore? , sight in the establishment of a contingency reserve, as a further precaution for the sound and conservative treatment of seenrities. The volume of business in the banking department had been fully maintained even ur.der the existing conditions. The directors expressed regret t^it. the terms of recent legislation compelled them to reduce the rate of interest to depositors . in the savings banks department. A conservative policy had - been observed in maintaining tho liquid resources of the association. . i The retiring directors, Sir James Gunson and Mr. H. Bellam, offer themselves;; - for re-election. Following is a comparison of the association's results and appropriations for the past three years:— " - 1930. 1931. 1932. Capital .. £167.922 £171.100 £171,363 Deposits .. 133,364 136,667 1i!7,340 Mortgages . 291,277 275,500 276, <Bl Net profits £12,870 Brought fwd. '453 992 Dividends— . A shares 7 7 y £ B and C (Ist) 7 7 . 5 Ditto. (2nd) 6 6, „ , Amount . 11.331 11,73 a , To reserve . 1,000 600 Contingency res. Carried fwd. £992 £I.OOB £1,024 The balance-sheet shows a very slight • reduction in assets at £324,271, as against £324,725 in the previous year. In addi* ; tion to advances on first mortgage the assets include deposits at call, £6041 (aa against £6017), balance at .bank, £2833 . - (£3132); fixed deposits at bank, £23,137. (£31,245); and Government stock and bonds, £15,281 (£8725).