COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 18876, 31 May 1923, Page 6

COMPANY BALANCE SHEETS.

THE OF AUSTRALASIA. Piiid-up Expendi- Xet. Ppiiwl capital. Hescrves. ture. prollt. ended X. £ £ £ Oct. 11, 11)20 3,500,000 3,220,874 7211,809 673,052 Oct. 10, lA2I 4,000,000 3,546,703 913,152 585,:;59 Oct. 16, 11)22 4,000,000 3,646,809 000,36:! G 20,105 Dividend bonus, l.'l per cent, lor the "three years. The eighty-ninth annual .report and statement of accounts pi this bank, laid before the general meeting, lield two months ago in London, disclosed the result of the years trading to bo somewhat similar to that or 12 months earlier. The net profit increased by £31,716, of which reduced expenditure effected mainly in London taxation was responsible for .£12,790. This enhanced profit is sufficient to meet the larger sum required to maintain the 13 per cent, dividend, which lias now, for the first time, to bo paid lor the full year on the augmented capital, and allow of the transfer of £IOO,OOO to reserve fund. On this occasion the surplus does not permit any writing down of trie value o! bSnk premises. The £25,000 applied in this manner last year was taken almost entirely from the previous year's accumulations. With the more restricted conditions prevailing, the iigureß dealt in by the bank continue to diminish. This tendency, however, is not so marked as last year when it touched millions. On the assets' side tho total is less, by £333,500, while on the liabilities' side the difference is about £IOO,OOO more. For this latter reduction, deposits aro in no way accountable. They show a partial recovery from the effects of tho previous year, when the lower prices received for produce .had brought them down. Bills payable, etc., show a further shrinkage, but as this is :i miscellaneous heading, and includes provision for contingencies, the v*osition of the bills themselves is not apparent. Tho notes in circulation again show a smaller figure. As Government notes only are issi'.ed in the commonwealth, this concerns the New Zealand section alone, and is thus scarcely a fair indication perhaps, not covering the whole field of operations. Tho drop for these in two years is 3D per cent., and is ascribed to ordinary fluctuation affected by the tailing off of the country's exports. The principal asset la advances on securities, etc. It is placed by itself for the first time in the balance sheet. Formerly bills receivable were included, and the combination on this occasion is smaller by £612,815. I'his looks liSo a sign of more general prosperity, and consequently of less necessity on tho part of its customers to invoke the bank's assistance. Tho actual ca3h associated with fepecio and bullion, is approximately half a million pounds less, but on the other hand, investments, including Government securities both in Australasia and the United Kingdom, show a larger increase. The distribution of these has undergone some alteration. Twelve months ago British Government securities formed leas than half of the total investments, apart from loans quickly realisable. Now they stand to the others in the propor- • fcion of three to one. For the past three years the position has been as follows: — British

Loans at call and at short notice are larger by £103,000. The vale of bank premises which in the previous balance sheet, was well written down has now been more than doubled, due doubtless to the extension and alterations to the Threadneedle Street office. In any case £18,056 does not aeera high for the buildings owned by a bank with 205 branches and agencies. After the- customary charges are placed against it, the balance of tho annual x>roht brought down is £18,926 more than last year. The charges of management to be debited to this, which 12 months ago had largely increased, are less by £2721. In Australasia the smaller general expenses arc to a great extent neutralised by the larger salaries and allowances. In London, the larger general expenses are more than counteracted by the smaller salaries. Hates and taxes are diminished, but still continue to be a heavy load. About two years ago it was decided to increase the paid-up capital by £500,000. . Thi3 was issued at a 50 per cent, premium, re serve fund benefiting by the extra £250,000 With more recent additions the reserve fund now stand% slightly over 83 per cent, of tho paid-up capital. After the instalments on the new issue were met, tho shares were subdivided from £4O to £5 each. Although tha issue was not made at the most convenient eeason for the shareholders, no difficulty seems to have been experienced in procuring the money.

Ciovt. •^otnl securities. Investments. Ratio. 1919-20 ... 761,598 1,847,087 41.23 p.e 1920-21 ... 775,291 1,760,568 44.03 p.c 1921-22 , ... 1,S13,042 2.430,179 74.33 p.c