BANK OF NEW ZEALAND

New Zealand Herald, Volume LXX, Issue 21520, 17 June 1933, Page 14

BANK OF NEW ZEALAND

SLIGHTLY. HIGHER PROFIT .YEAR'S TOTAL OF £594,270 SPECIAL; ITEMS INCLUDED UNDIVIDED EARNINGS REDUCED A reduction in gross profit but a slight improvement in net profit is disclosed in the-annual accounts of tlio Bank of Ne<v Zealand, Limited, for the year ended March 31. The gross profits fcr the year were £1,746,339, a decrease of £2-1.347, while the net earnings at £594,270 were higher by £7247. Taxes for the year decreased by £16,160 to £486,675. Reduced dividends on the ordinary shares and the B preference shares, held by the .Government, were announced in the Herald on May 2. Ordinary shareholders are recommended b. dividend of 111 per cent for tlio year, compared with 14 1-3 per cent in the previous vear, while the distribution on the B preference shares, in terms of the statutory provision, is reduced from 13-2-11 per cent to 8.97 per cent. The total amount required for dividends is £644,532, reducing the balance of undivided profits, which stood at £395,056 at March 31, 1932, to £344,795 at March 31, 1933. The annual meeting of shareholders will bo held in Wellington on June 23. Profit and Dividends The directors' report states the profits, including surplus, on maturity and realisation 6'f investments and other profit of a non-recurring nature, and • after making full provision for all bad and doubtful debts by a transfer of a portion from contingencies account and after making provision for expenses oi j management and also for the annual donation to the provident fund, are £615,469. From this has to be deducted interest on guaranteed stock, £9l 199, leaving a balance or profit tor the' year of £594,270. The amount brought / forward from last year, £395,056, added to the latter, makes a total of £989,326. . . Interim dividends paid in December absorbed £348,047, leaving available £641,279. This sum tho directors propose should Be disposed of as follows: — Dividend on C long-term mortgage shares, at 6 per cent per annum, £'o3l ss; dividend on D long-term mortgage shares, at 7J per cent per annum, £17,578 2s/6d; dividend on preference B shares (making £123,437 10s for the year), £84,3/5; dividend at rate of 5 per cent on ordinary shares (making ' cent), £187,500; leaving a balance of £344,795 to., be carried forward. The dividends are to-be paid in New Zealand currency. Balance-sheet Figures The paidrnp capital of the bank remains at £6,858,113. After payment of the dividends the aggregate of capital, reserve fund (unchanged at £3,575,000) and undivided profits will be £10,777,908, a decline of £50,261 since the previous balance-sheet. The tota'l of the balance-sheet is £32,762,904, an increase of £954,435. The long-term debenture stock remains at £607.050. Notes /in circulation, £4,338,747, register art increase of £275,985. Bills ! payable and other liabilities, including j provision for contingencies at , £3,529,578, have been reduced by j £113,370. A rise of £1.007,396 in deposits to £32,573,239 is accompanied by a contraction of £573,453 in advances, including discounts, which amount to £25,079,868. The ratio of advances to deposits is 76.99 per cent, as against ■ 81.2 per cent last year and 88 per bent , in the previous year. /Funds In London The various cash items in assets have risen' by £647,419 and other liquid assets also are higher - by £855,403. The total of liquid assets is £25,712,572, as against £24,199,750 in 1931-32, an increase of £1,512,822. Funds in London have increased sharply and amount to £7,897,995, a rise of £2,003,960/ In the previous year there was a reduction of £91,103. The latest sum comprises money at call and short notice, Government and other securities, £6",266,397 (as against £4,314,317.), and bills receivable in London and in transit. £1,631,598 (as against £1,514,717). Holdings of New Zealand Government securities stand at . £3,451,146, which is £1,228,540 less than a year ago. Those of Australian Government securities, on the other band, have again risen by £327,012 to £3,974,744, "while municipal and other local bodies' securities have undergone another contraction of £161,897 - to £520,482. The total of New Zealand and Australian investments*, £7,949,372. shows a reduction of £1,063,425.. Remittances in transit are .£140,132 lower at £1,356,646. Landed property, premises, etc., appear .at £632,771, an incre&se of £9916. balance-sheet of the long-term mortgage department shows that loans - have been made to a total of £1,154,622, a decrease of £31,191. Preference. capital and debenture stock are ujialtered at a total of £1,310,175, the balance of £155,553 having been transferred to the banking department,. an increase of £31,191. Comparison o! Results Following is a comparison of tho bank's profits, expenses and appropriations for the last three years: 1930-31 1931-32 1932-33 Gross profits £2,009.412 £1.770.(86 1.7JJ6.339 Int. on stock 21,199 21.199 21.199 Salaries A 508,989 504.801 514.859 Other expens.es 187.521? 154.828 1_9.33a Bates & taxes 445,881 502.835 48G,G/o Is'et profits . £845,814 £587.023 £594,270 Brt. forward 623,157 626,002 390.006 ■ £1,468.971 £1.213,025 £989,326 To reserve . 25,000 Dividends — Mtg. capital 49,219 49,~19 49.-19 Blinking capital: Government 231,230 231,250 173.438 Ordinary . 537.500 ' 537,500 .421,87 a Car. forward £626,002 • The total amount required for dividends this year, £644,532, compares with £818,969 last year, and is a reduction of £174,437. The Government from its holdings will receive £57,813 less at £187,500. The rates are as follows: —Preference shares, A (held bv Government). 10 per cent, fixed; B (held by Government), 8.97 per cent, as against 13 2-11 per cent; C (held by Government), 6 per cent, fixed; D, 7\ per cent, fixed; ordinary, Hi per cent,- as against 14 1-3 per cent. Tho number of tranches and agencies of the bank has been reduced (hiring the vear from 235 to 227. One . branch arid eight agencies have been closed and one agency has been opened.