BANKING RETURNS

New Zealand Times, Volume XXXIII, Issue 7852, 14 July 1911, Page 7

BANKING RETURNS

FIGURES FOR TUB PAST QUARTER. The returns for tile June quarter of the various banks trading in New Zealand being now available, we bare opportunity for placing before our readers tho position these returns disclose. The export season just closed, although a good one, was some way behind the previous season, which constituted a record for New Zealand. On the other hand there has of late been considerable growth in mu- imports. Imports and exports aro the chief factors affecting bank transactions. Briefly, tho principal movements since the March quarter are an approximately equal grow 111 in both deposits and advances, while as compared with a year ago there is a fairly good increase in deposits but a very heavy addition to advances, TWO QU ARTERS COMPARED. The following figures give a comparison of the totals under tho principal neadings lor the March and June quartern respectively :

Tho total of the two classes of private deposits shows an increase of ,£772,829 in the three months chiefly in the free class. Government deposits also exhibit fair increase. 'The increment in advances and discounts amounts to A815.4G5. Note circulation and holdings of coin and bullion also exhibit moderate growth. We now turn to a comparison of the present figures with those for the corresponding quarter of previous years, in order to show the movements from year to vear- Taking first the totals of assets anti liabilities we get the following comparison :

la tho latest year there is an increase of just under three millions in assets and nearly two millions in liabilities. The years 1908 and 1909 stand out as liar-ins an excess of assets over liabilities, caused by tho decline in deposits coupled with a heavy increase in advances. Since then 'there lias been a considerable reduction in tho advances. The latest figures show a largo increase, but on the other hand deposits have also grown considerably, tlius providing a good supply of funds to meet those advances. ADVANCES.

The totals of advances and discounts show the following movements in the last six years;—

We see her© that tho total of the two classes of advances is heavier than, any other year, except 1908. Tho much heavier scale of importation going on at present is probably the main factor in this movement, and is a matter which X'equiroa the careful attention of importers, in order to avoid an accumulation ox stocks in excess of requirements, DEPOSITS. The totals of private deposits in the same period show the following com*

Tho fixed, or interest bearing, deposits show' fairly steady, though small, increase from year to year. The free, or current credit balances, after attaining a total of twelve millions in 1907, fell off in the two subsequent yeabs, but have since fully recovered the lost ground, and now stand at a very high total. Tho total of private deposits of both class© compares as follows with tho total advances, ’including discounts:—

Although the excess is reduced by nearly two millions in the year, there is still a good balance in the hands of the banks, which points to a continuation, of fairly easy lending rates. COMPARISONS. The proportions of deposits and. advances with the different banks show the following comparisons;—

National Bank 3,620,414 3,615,705 Here there is one exception to the general rule of increase—the National Bank shows a trifling- decline. NOTES AND COIN. The totals of note circulation and the holdings of coin and bullion show the following movements in the last six years:—.

In both theee_ lines the latest year’s total is the highest in the years under review. Increased note circulation is in all probability indicative of improvement in trade. RESERVES. The share of each bank in the metallic reserves compares as follows:

Three of the banks exhibit good increase; the Bank of New Zealand and Bank of Australasia have somewhat smaller holdings. A general survey of these figures reveals a position that may be considered.

on tho whole, very satisfactory. The results of the past export season do not come up to the previous year, otherwise a greater increase in deposits would have accrued, but there is a fairly substantial increase nevertheless. The very heavy increase in advances points to heavy importation. However, the supply of available fluids appeal's to he quite sufficient for all legitimate requirements, and the figures do not indicate that there will bo any hardening of lending rates.

ilarcli Juno 1911 1911 £ £ Deposits, free 12,974,315 13,083,100 Deposits, fixed 19,495,731 10,559,715 Deposits, Gov'merit 3,105,613 3,548,026 Discounts 1,730,397 1,831,404 Advances 13,009,583 18,784,391 Note circulation ... l.CGl.lCS 1,717,007 Coin and bullion 5,030,70) 5

Jiim-8 Assets Liabilities Quarter £ £ 1906 23,297.700 21,795,626 1907 .... 26.015,'1£G 26,131,723 1909 .... 26,912,215 23,836,003 1910 .„ ... 25,925,376 27,779,359 1911 8 1 1

June Advances. Discounts. Total. Quarter. £ . £ £ 1906 11,108,565 2,031,633 16,140,198 1907 16,033,352 1,987,162 18,020,514 1908 19,136,675 2,274,841 21,411,416 1909 ...... 17,075,138 1,967,253 19,042,381 1910 16,236,227 1,699,340 17,935,567 1911 18,781,391 1,831,464 20,615,855

parisoiifi: : — Juno Free. Fixed. Total. Quarter. £ £ 1906 10,732,709 9,867,273 20,599,982 1907 12,213,939 9,329,025 21,612,964 1903 11,532,283 9,722,662 21,251,913 1909 10,892,670 10,039,089 20,931,759 1910 12,916,101 10,515,095 23,401,193 1911 13,683,160 10,339,713' 21,212,875

Excess cf June Deposits. Advances, Deposits. Quarter. £ £ JC 1906 20,599,932 16,140.198 4,459,784 1907 21,842,964 18,020,514 3,822,450 1908 21,254,918 21.411,416 *156,463 1909 20,931,759 19,042,381 1,689,378 1910 23,461,196 17,935,567 5,525,629 1911 24,212,875 20,615,855 3,627,020 ‘Excess of advances.

Advances. June. June, 1910. 1911. £ £ 6,993,347 7,980,039 Union Bank 3,147,713 3,354,517 Bank of N.S.W 3,445,351 2,972,363 Bank of Australasia 2,64S,312 3,134,0X3 National Bant 2,700,845 3,174,923 Wo see hero that each bank shares in the genora.1 increase in this line. Deposits. Juno, Jane, 1910. 1931. £, £ 11,195,330 13,574,327 Union Bank 3.298,005 3,355,044 3,329,738 3,479.025 Bank of Australasia 2,017,702 2.217,374

Koto Coin and quarter. circulation. bullion. £ £ 11)06 1,615,447 4,660.851 1907 . 1,694,323 4,755,803 1003 . 1,666,616 4.917,719 1909 1,623,671 4,956,114 1910 1,64-5,783 4,894,830 1911 1,717,007 5,103,664

June, June, 1910. 1911. £ £ Bank of N.Z 2,42.7.613 2.212.403 Union Bank 754,164 845.524 N.S.W 470,927 550.55S Bonk of Australasia 512,572 507,17? National Bank .. 831,574 9S7,70C