NATIONAL BANK OF NEW ZEALAND

New Zealand Mail, Issue 1799, 29 August 1906, Page 1

NATIONAL BANK OF NEW ZEALAND

ANNUA L MEETING. (From Our Special Correspondent.) LONDON, July 6. The thirty-fourth ordinary general meeting of the National Bank of New Zealand (Limited) was held this week at Winchester House. Mr Robert Logan presided, and, before proceeding with the business, made a sympathetic allusion io the unexpected and untimely death of Mr Seddon, who, he said, always showed himself a good friend to the bank. He added that the prosperity which New Zealand enjoyed during Mr Seddon V administration was the principal cause of the bank’s excellent position. Continuing, the chairman said that the past year had been, on the whole, a prosperous one in the colony. The main factor had been the enhanced price prevailing for wool—the largest article of export. The rise in price had been extraordinary, and had now reached a figure unknown for many years. The dairy industries continued to expand. and, for the first time, the export of dairy produce had exceeded £2,000,600 in value. Frozen meat and relative products had not been quite so satisfactory, and rather a lesser quantity had been' available for export. The harvest in Otago and Southland had also not been so good as usual, but, on the whole, trade and business had been brisk. A succession of years of prosperity had resulted in a more liberal internal expenditure, which had latterly been very muen evidenced in the imports of New Zealand. The standard of comfort had been rising steadily. There had been a considerable surplus of immigration over emigration during the past five years, and the cost of living was a good deal higher now than it was “in the good old times/'’ Farm lands changed hands at high prices, the cities were being improved by handsome and commodious blocks of buildings, but residential areas and lands in many parts were selling at prices which appeared to be excessive, and it was a question whether these prices could be maintained. However, with such general prosperity, it followed that the bank had had a very good year—in many respects the best 'they .had ever experienced. After making full provision for all bad and doubtful debt's, their gross profits amounted to ,£144,930, a very considerable increase over last year’s figures. The expenses had gone up, as was to be expected, but they did - not much exceed 40 per cent, of the gross profits. Including tfie amount brought forward, the net profit worked out at the satisfactory figure of £76,167, out of Avliich they paid the usual interim dividend in January last, and they now proposed to pay the same filial dividend and bonus as were paid a year ago. They had transferred A 10,000. instead of the usual .£SOOO, to the premises account, in view of the cost of their new building at Wellington. They had also transferred £3500 to pay a bonus to the staff, and they proposed to allocate A 2-0 ,000 to the reserve fund, which would then amount to <£250,000 —a sum equal to the company’s paid-up capital. Finally, they proposed to contribute £3500 to the pension fund, as was done last year. If these suggested allocations were approved, there would remain £9167 to be carried forward. The issue of the new capital more properly Belonged to the current year, though a sum of £24,292, representing advance payments, appeared in the balance-sheet. The new issue was most popular in New Zealand, and, indeed, among all their shareholders. When the instalments were complete, as they would be next October, the company’s capital would stand at £375,000, and the reserve fund at £300,000. The board looked forward with confidence to a continuance, of the bank’s progress. There might be —must be, in fact —a pause in the great prosperity which had been enjoyed in New Zealand for so: many years; but, with increase of population,'and accumulation of wealth, and the steady strengthening of the bank’s position and reserves, they could afford to regard any such pause without the least apprehension. The report was adopted, and the proposed dividend at the rate of 10 per cent, was also agreed to.