THE BANK OF NEW ZEALAND

New Zealand Mail, Issue 896, 3 May 1889, Page 29

THE BANK OF NEW ZEALAND

HALF-YEARLY MEETING

DIVIDEND SEVEN PER CENT.

(feu press association.) Auckland, April 30. The half-yearly general meeting of the shareholders in the Bank of New Zealaud was held at noon to-day in the bankinghouse, Queen-street, when there was a large attendance. Mr George Buckley, the President, occupied the chair. The fifty-fifth report of the Directors was 1 submitted as follows : The result of the half-year’sj operations iB as follows : Net profit for the half-year which ended 30th March, 1889, after an appropriation for bad and doubtful debts, £43,360 Is lid, to which has to be added the premium on the new shares allotted above par, IeBS charges and costs, £11,121} balance from the half-year, which ended 29th September, 1888, £33,968 10s 8d } making a total available of £88,449 12s 7d, which it is proposed to appropriate as follows s—To payment of|a dividend at the rate of 7 per cent, per annum, £33,063 ; balance carried forward, £55,386 J2s 7a } total, £88,449 12s 7d. Aggregate balance-sheet at 30th of Maroh, 1889, including London office at 3lßt of January, 1889 : Dr. —Liabilities, capital paid up, 100,000 shares, £7,each, £700,000 } 25,000 shares, £lO each (£lO paid up), £250,000 ; 25,000 shares £lO each (£7 paid up), £175,000 - less calls unpaid, £176, £174,824} notes in circulation, £478,154; bills payable in circulation, £2,015,266 17s: deposits and other liabili. ties, £10,058,293 10s Id ; balance of profit and loss, £88,449 12s 7d. Total, £13,794,987 19a Bd. Assets.—Coin and cash balances at bankers, £2,287,367 17s lid ; money on short call in London, £164,952 4s Id ; bullion on hand and in transit, £198,043 6s 6d ; Government securities, £37,521 7s 9d } bills receivable and securities in London, £2,253,722 8s 9d ; bills discounted and other debts due to the bank, £8,480,768 6s 3d } landed Droperty, bank, premises, etc., £372,612*8s sd. Total, £13,794,987 19s 3d. Profit and loss account—-To dividend at the rate of 7 per cent per annum, £33,063 ; balance carried forward, £55,386 12a 7d ; total, £88,449 12s 7d. By balance from half-year ended 29th September, 1888, £33,968 10s 8d; net profit for half year ended 30th Maroh 1889, £43,360 Is lid ; premium on new shares allotted above par, less charges and costs, £11,121; total, £88,449 12s 7d. The President, in moving the adoption of the report and: balance-eheet, said: “In considering the balance-sheet laid before us to-day, embodying the result of the first half-year’s .working of the bank in its reconstituted shape, we must bear in mind that the conditions which adversely affected the previous half-year prevailed to some extent in the opening months of that now uuder review. Your Directors still considered that prudence demanded making the maintenance of the bank’s strength a paramount object. With this in view, it is not a]matter of surprise nor need be of much regret that the aggregate figures show some shrinking as compared with the corresponding period of 1888. On the other hand we may congratulate ourselves upou the account of the net profit earned during the half-year ; the increase of £IO,OOO as compared with the previous half-year being, l6t us hope, an earnest of a gradual return to the figures of former days. It may strike you that the better result is due to the employment of new capital paid up during the half year ; and this is true to some extent, but you will recognise that new money cannot, with due regard to safety, be readily put to a profitable use, and as a matter of fact the £424,824 of fresh capital only became available graduallyfas the half-year advanced. Its effects should be more fully apparent in the future. Turning now to the figures of the balance-sheet, your attention will, no doubt, be first drawn to the increase as compared with the last balance-sheet, in the item ■capital,’ which now stands at £1,124,824 The 50,000 shares which your Directors were empowered to offer for subscription have been taken up—25,000 in the colonies and 25,000 in London. As you are aware, £7 per share has been called up on the issue in the colonies ; but on the London issue £lO has been paid, it having been found desirable to accept payment in full to ensure the subscription. The bank’s subscribed capital now amounts to £1,200,000, with a reserve liability of £1,500.000. Bills payable show an increase of £752,000, but there is no significance in this, it being merely the result of ordinary business operations. The deposits show a decrease of some £600,000. This is accounted for by the withdrawals, which have, been made chiefly in London, and which were expected and provided for. They took place largely in the early part of the period at a time when there was a feeling of uneasiness as to the condition of things in this Colony generally. I am now glad to say that the bank’s deposit business is |an improving one. On the asset side I would point to the item * coin and cash balances in London,’ £2,287,000, as evidence that the Bank is determined to maintain a position of financial strength. In the items ‘money on short [call in London ’ and * bullion on

haild and in transit’ there hds b'Gen a decrease of £450,000; but this is morely otfing to the fact tiiat it Has suited our arranger mentstohold our asset in another form. I would as against this direct your attention to the item ‘ bills receivable ’ and ‘securities in London,’ £2,253,722, an increase over the sapae item in the last balance-sheet of £1,6i3,000, !J more than ample set-off ; ‘ bills discounted and otlier deb'ta due to the bank ’ are less by £550,000. Some cop. siderable amounts have been received in the reduction of advances which had become unwieldy. Other customers again have taken advantage of the low rates offering for permanent investment to borrow on their properties outside their bankers.. There is now a healthy demand for banking facilities, and the tendency is the other way. With the balance brought forward from the last half yeaf, net premium (£11,120) received on the new issue of shares, Wo have a total available profit of £88,449. Out of this we have pleasure iu recommending that a dividend at the rate of 7 per cent per annum, absorbing £33,063, be paid) and fch© balanoo (£35)3815) carried forward. To give effect to the promise made at the previous meeting to bring the deed of settlement in some respects into conformity with the existing requirements aDd condition your Directors have to propose certain amendments and alterations. .These are now before you, and an expression of your opinion will be sought thereon. They have also had prepared an amendment to the Act, and due notice has been given of the bank’s intention to bring forward such Bill during the next session of Parliament. Your Directors promised to see how far the profits could be increased by judicious retrenchment and centralisation. They are fulfilling their promise in this respect, and the result of their endeavours will, it is hoped, be apparent in the increased profits in future. It is gratifying to note that the signs of returning prosperity to which I was able to refer at our last meeting have since become more pronounced. A bountiful harvest saved in excellent condition is meeting with remunerative prices at our oWn doors. The revival of the flax industry, the Steady demand for our dairy produce, the improved tone of the wool market, and the development of the frozen meat trade are amongst the factors that are working toward a better state of things. Renewed attention is being directed toward us from outside—from Australia, where our advantages of soil and climate have recently been brought into sharp contrast with the disastrous droughts that have again afflicted our sist-er colonies, as well as from London, where a marked rise in our Government securities speaks of a growth in confidence and favour with the investing public. The settlement of our lands goes steadily on, increasing the number of producers, and in this way the national wealth. The finances of the Colony have been brought into an equilibrium, if, indeed, there is not this year a surp'us. There are, I think, plnin indications that the habits of thrift engendered by the past adversity are producing their natural fruits. Reviewing these considerations you will doubtless agree that I am justified in taking a confident view of the future. Ido not look for a ‘ boom.’ We do not want ‘ booms,’ bat a steady growth in national prosperity in which we, as a bank, as well as individually, must share. You will regret to learn that the health of Mr John Murray, our General Manager and Inspector, has not permitted his resumption of active duty. The Board, who are desirous to foster and strengthen by every means in their power the strong relationship formed in London, and reoewed confidence that is being manifested there, have taken advantage of his absence from the head office, and requested him to proceed to London, where, in concert with the London Directors, he will doubtless be able to render valuable service in the interests of the bank. Mr G. E. Tolhurst, our manager at Wellington, has been appointed to act as General Manager and Inspector daring Mr Murray’s absence. Gentlemen, I now bag to move, “That the report and balance sheet be adopted.”

Mr W. S. Wilson seconded the motion, which was agreed to. On the motion of Mr James Russell, seconded by Mr A. K. Taylor, Mr A. Bull was elected a Director. The amendments in the deed of settlement, a 3 already advertised, were agreed to. After a slight discussion Mr G. P. Pierce said he understood that an alteration was to have been made in the deed of settlement in regard to the share register. He thought that the share register of the bank, like that of every joint-stock company, should be open for the inspection of every shareholder. It was highly necessary for the shareholders to know who were their copartners, and whether the Directors had the requisite number of shares. The Chairman said that this question had not escaped the notice of the Directors, but it was brought before the shareholders in October, 1879, and a resolution was passed that the share list should not be open for inspection. There waß much to be said on both sides. The bank was in a different position to a public company, and the Board of Directors had seen no reason to alter the resolution.

Mr Boardman spoke at some length in support of Mr Pierce’s contention. It was pointed out by Mr Ewington that the third section of the deed of settlement precluded anyone getting access to the share register. The Chairman said it would be necessarv in order that any alteration should be made that a notice of motion should be given, and it would come on at the next meeting. Mr Buckley also intimated that the amendments in the deed of settlement would be confirmed at the next half-yearly meeting. On the motion of Mr J. H. Upton, a vote of thanks was passed to the Directors and officers of the bank. The President, in acknowledgment of the vote, called the attention of the shareholders to the valuable services rendered to the bank by Messrs W. W. Johnson and A. G. Horton as a deputation to London, and said the Board could not value those services too highly.