BANK'S YEAR

New Zealand Herald, Volume LXXV, Issue 23053, 2 June 1938, Page 9

BANK'S YEAR

yours: — Gross profit Net profit Dividends 1930 .. £'J,013,5-_"5 £'948,5;54 £Bl7, !)(>!) 19:11 .. 2,000.412 R15.8U K1 ] 032 .. :J,770,(58(5 .587,02:1 917,0(50 ion:: .. 1,740.339 504,270 0i1,532 193 1 .. 3,509,90(5 573,082 571,21!) 1935 .. 1,4(58,371 578,7 18 574,21!) 10.3G .. 1,508,082 505,152 574.210 10;l7 .. 1,00(5, 342 1500,008 574.21!) 103S .. 1,072.821 583,209 574,219

NEW ZEALAND PEOEIT FALL OF £16,799 SHOWN EARNINGS COVER DIVIDENDS GROWTH OF EXPENSES Although there was an expansion of £00,479' in gross profit, net earnings of the Bank of New Zealand were C 10,799 lower at £58:5.209 for the year ended March 31. The profit is £8990 more than is required to pay 10 per cent on ordinary capital and the dividend charges on preference shares and the surplus is left to swell the floating balance. The decision of the directors to pay unchanged dividends was announced .in the Hkrau) on April .'SO. Ordinary shares are again to receive 10 per cent, which has been maintained since 1931, and the statutory distributions will be made on other stock. The total distribution on all shares is £574,219, ol which the Government will receive £101,002 10s from its capital holdings. The balance of undivided profits brought in was £304,890, making £948,099 available. Interim dividends required £293,350 and the balance of £054,740 the directors recommend should be distributed as follows: —Dividend on C long-term mortgage shares at 0 per cent per annum, £7031; dividend on D long-term mortgage shares at 7.J- i>er cent per annum, £17,5"5; dividend on preference B shares (making £IOO,OOO for the year), £08,750; ordinary dividend of 5 per cent (making £375,000 for the year, equal to 10 per cent), £187,500; balance to be carried forward, £373,880. Results Compared Following is a comparison of the bank's profits, expenses and appropriations for the past three years:

The capital held by the Government comprises:—£soo,ooo A preference shares, £1,375,000 B preference, and £234,375 C long-term mortgage shares. The public holds 3,750,000 ordinary shares of £1 each and 468,750 1) longterm mortgage shares also of £1 each. Gross earnings at £1,672,821, compared with £1,606,342 a year ago. There was an all round increase in expenses. Salaries rose £10,914 to £563,987 and directors' remuneration was up by £602 to £9132. Miscellaneous expenses were £15,680 higher at £134,141. Additional rates and taxes absorbed .a further £56,053, the total amount provided being £379,342. In three years the amount required for taxation purposes has risen by £BB.OOO. The following table shows the gross and net earnings and the amounts distributed in dividends for the past nine

Balance-sheet Movements Changes in tho balance-sheet figures are as follows: — LIABILITIES

Capital is unaltered and reserve fund, which is invested in British Government securities, remains at £.'5,575,000. Deposits have continued the decline noticeable in the previous year, although the level is high in comparison with the average ruling since 1920. In keeping with the general trend advances have risen by £2.753,.'575 to £26,417,323, which is £4,237,950 higher than the figure in 1936. The? proportion of advances to deposits lias risen to 76.0 per cent, against 60.4 per cent in 1937 and 62 per cent in 1936. A few years ago tlie ratio was as high as 88 per cent. Transfers Ironi the mortgage department are again higher, increasing by £27.054. Bills payable include other liabilities and provision for contingencies. Assets Total Lower The balance-sheet total is £413,103 lower at £51.417,124. More or less liquid assets have* fallen to £22,894.425 from £26,108.701 a year ago, the chief declines occurring in coin, etc., and London funds. Following a fall of nearly £2,000,000 in J937 funds in London have contracted by a further £1,683,397. The only liquid items to increase! are remittances in transit and Government securities. Holdings of New Zealand Government securities have expanded by £764.253 to £5,390,317, while there has been an almost corresponding decline in Australian holdings, which are £750,266 lower at £2,239,634. The long-term mortgage department account again shows a contraction in loans which totalled £911,062, against £938,116 a year ago. During the year nine agencies were opened. One agency was closed and a branch was converted to an agency. The annual meeting will be held in Wellington on June 10. RUBBER MARKET REDUCTION IN QUOTA LONDON, May 31 The International Rubber Committee has reduced the quota for the third quarter of 1.938 to 45 per cent. Shares in rubber companies have risen slightly as the reduction meets the market's best expectations. There now seems to be hope of reducing stocks to a more reasonablo level. MINING SHARES IN LONDON LONDON, May 31 Quotations for mining shares to-day were: — Mount Lyell, 17s 6d, compared with 17s 9d yesterday; New Guinea Gold, Hid.

1935-30 11)30-37 1' 1,(500,312 553,073 120,072 323,2*0 1937-38 Gross profits 1 Salaries . Other exp'ses Kates A taxes ,508,9S2 520, 182 120,427 291,101 1,072,821 503,0*7 1 10,283 370,3 12 Net profits Brt. forward 505,182 3 IS, 138 000,008 330,101 583,209 301,890 913,320 Dividends — Mortgage capital 49,-19 Banking capital— Government .150,000 Ordinary. 375,000 Kate px. p.a. .10 030,109 49,219 150,000 375.000 10 918,090 49,219 150,000 375,000 10 Car. forward 330,101 301,800 373,SSO

£ £ Paid capital 0,328.125 Sanio Heservo fund 3,575,OOO Same MnrtstaifO shares . . 007,050 Same Notes in circulation 027 -1 Deposits 31,731,532 —004.580 Due to other banks 51,103 -10,851 Bills payable, etc. 4,58'_>,270 +407. Mi l Reserve for taxes. . <120,000 Same London office acceptances 01,204 -1,170 Mortice Dept. . . 890.113 +27,054 P. ami L. balance 051,740 +8.001 ASSETS £ £ Coin, notes, etc... 0,254.4-17 -1,810.800 Due h.v other banks 15.730 — 15,072 Funds in London . . fi,777.018 -1,083,307 Govt, securities . . 7,020,1)81 + 7,080 Local body securities 275,570 -50,149 Remits in transit 1,010.7 43 +35(1,(1(14 Advances, etc. 20.417.323 + 2.753.375 London office (per contra) 01 — 1,170 Premises, etc. 733,038 +48,077 Mortgago dept. .. 1,310,175 Same