SAVINGS BANK

New Zealand Herald, Volume LXXIII, Issue 22404, 28 April 1936, Page 7

SAVINGS BANK

PAST YEAR BEYIEWED TOTAL FUNDS A RECORD STRONG POSITION SHOWN MORE HOPEFUL OUTLOOK " The total funds of the Auckland Savings Bank now exceed £8,500,000, an increase of £328,000 over the previous year's record figures," stated Mr. E. A. Brown, president of the board of trustees, in his address at the BSth annual meeting of the bank yesterday. An improved position resulted in 'relation to deposits and withdrawals, while the accounts increased by over 7000. Mr. Brown said the bank had witnessed varying phases of national prosperity and depression, but at no time had its stability or the soundness of its policy been under suspicion. Its aim had been to build up such a reserve as would provide a 10 per cent margin over liabilities, and this result had been achieved, giving more than ample security for its depositors. " Our depositors now exceed 169,000, which is a remarkable number when we consider that the metropolitan population is approximately 220,000," said Mr. Brown. "'lt is gratifj'ing to note that the increase in the amount at credit of our depositors has shown a marked improvement, and the reason is not far to seek. With less unemployment, or, with more wages, depositors are making steady provision. Legislative Restrictions " To-day thero is a more hopeful outlook in the community, and this will continue to improve at an accelerating rate if our legislators will be content » to give a correct impetus along proven channels. In this direction we can rely on the assurances which have been given that there is nothing to fear in the future." Mr. Brown said the improvement in the Dominion's finances permitted the overdue removal of restrictions imposed during the depression. The bank was made up. of component depositors with an average balance of £62, who in the main consisted of the working classes. It was grossly unfair and without precedent that income tax should be levied on the annual profits. To fix the maximum rate of interest on deposits at 3 per cent per annum was a further penalty on real thrift. Every incentive should be given to encourage saving by the individual and by so doing tlx* State would be greatly relieved of the burden of providing charitable measurea. Mr. Brown said the liquid resources were in ekcass of the previous year by £102,100, and now stood at over £1,250,000. These were augmented by Government stock, £2,170,161, and local body debentures aggregating £1,388,335. These were shown at cost price, the face value being an extra £47,000. Concession to Mortgagors In the revenue account a small decrease of £4704 was shown, due to the lowering of the rate of interest on mortgages from 5 per cent to 4£ per cent, from April 1, 1935. This involved a concession to mortgagors of about £16,000. Gross profits decreased by £12,143, due mainly to the reduction in interest rates. Similarly, net profit Avas less by £2760, at £51,844, with £6199 brought forward. The sum of £35,000 was transferred to reserve and investment fluctuation account, and reserve for donations and taxes absorbed £19,500, leaving a carry-fox ward of £3543. Details of the year's business are as follows, the corresponding figures for the previous year being given in parentheses:—Deposits received amounted to £4,095,174 (£3,803,597), and withdrawals totalled £4,015,005 (£3,781,692). The increase in deposits is £291,577 (£185,458), and they are in excess of withdrawals by £80,169 (£21,905). To this increase should be | added interest earned, £208,972 I (£203,104), bringing the total amount at credit of depositors to £7.617,947 (£7,328,806). Increase In Accounts New accounts opened during the year numbered 20,399 (18,201), and 12,940 (12,877) accounts were closed, excluding 431 (399) accounts transferred to the Treasury under the L Unclaimed Moneys Act. Accounts remaining open were accordingly increased bv 7028 (4985) to 169,997 (162,969). The general average per operative account was £62 5s Id (£62 14s). Depositors transactions totalled 1,048,015 (960,374). Ibis is the first time in the history of the bank that the millibn figure has been exceeded. In mortgages, the advances totalled £312,941 (£130,692), and repayments £133,060 (£114,399)! The net inSeaS in the numb ft/ of mortgage accounts for the year was 265. and the total now held is 4789, aggregating £3,456,633 (£3,298,022). The averag? 2>cn°o Un Aot-? ty a V d s "burban loans was ~6«.9 (£64^). and that on farm securities £IB6B (£1980). Interest payments numbesed 26,886 (25.054). Advances debemtures totalled £154,110 (£lo6,4o0), and £89.169 (£46.744) tu repaid.