COMPANY BALANCE SHEETS

Otago Daily Times, Issue 19205, 23 June 1924, Page 6

COMPANY BALANCE SHEETS

BANK OF NEW SOUTH WALES. raid-up General Net DiviSix months "™f-

Another prosperous half-year is announced by this hank which, although its mam connection is with the neighbouring commonwealth, has extensive interests in this dominion. Tho net result for tho six months ended 31st March last is the record profit of £158,621. It exceeds that of the corresponding period of 1922-23 by £26,433. and gives a return at tho rate of 15.20 per con.,, per annum, compared with 14.46 per cent. In two years the paid-up capital has increased 20 per cent., and in tho same time the net profit has increased 27 per cent. Out of the surplus £160,000 is transferred to reserve fund, leaving the floating balance the larger by £8621. Tho dividend remains at the U'.*an 1 rate of 10 per cent, per annum. The customary items are mentioned as ineluded among the debits before tho not profit is arrived at, but only m the case of taxes is the amount stated. 1 hose come to £lO6 635—a decrease of £47,716 on tho figure 12 months before. This in itself more than accounts for the larger profit, the dividend is paid quarterly, which procedure, while it involves more work for the secretarial department, must be a groat boon to the shareholder . Reserves total £1,213,159. Their upward movement has been steadv. and is inclined • to become faster. In five years the aggre<mto has increased bv practically one million pounds. Of Jatc years, by recent issues the paid up capital baa out-distanced reserves, but tho latter have reached 70 per cent, of the former, and jiromisc to reduce the leeway further in the future. This figure does not include other reserves indicated in the balance sheet, the amounts of which are not stated. There are no securities now ear marked for tho reserve fund which, it is declared is used entirely in the business of the bank. Such seems to be the best form of investment in tho eyes of the management and doubtless brings in the highest return, but this may happen only at a cflcrifice of the security. Formerly, a proportion of about ono-third was invested with the British Government and tho Governments of States in which the bank was represented, and shareholders might bo interested to know' why this policy was superpeeled. Xotes in circulation storixi st* £695, This is £64,255 higher than six months ago,

and £98,981 higher than ft year ago. As the issue, concerns this country "lone, the norcaeo reflects tJie expansion of business in conseg.acn-co of the more favourable conditions ruling I ere. Deposits with interest accrued and rebate are over £900,000 down from last year—less than 2 per cent, on the aggicgaie of nearly fifty-six millions, ibis drop is duo to the withdrawal of certain Government deposits, the deJ>osiis by customers having actually increased during the period. In consequence of this withdrawal the item of advances under war gratuities scheme has disappeared from the other side ot the balance shesU Bills payable and other liabilities are entered at £9.747.919. Among them are included reserves for bad and doubtful debts, a reserve for investment fluctuation, as well as bills payable, and amounts due to other banks. Under this comprehensive heading, it is not stated how much may bo actual liabilities and how much reserves. The total is practically the same as six months ago, but the units may have altered considerably, and the reserves in the interval may have been augmented. Bills discounted and loans and advances to customers form the chief asset. They are nearly three millions higher than at March, 1923, but have como down over £BOO,OOO in the last six months. Their relation to the total assets will be seen below —viz.:

Tho proportions still stand high, although reduced from the record figure of six months ago. Possibly when the good prospects in view for the corning season are realised tho advances may be reduced materially further, Wheat pool advances, it may be noted, aro some £70,009 up from those of 12 months ago In September of last year com, bullion, etc., were higher, than usual, and their drop in the interval by two and a-half millions brings them nearer to their average amount Tho money earning interest, but realisable at short notice, has swelled from £690,000 to £2,100,000, which, however, is a smaller total than at earlier balancing dates. Investments in British and colonial Government securities have diminished by approximately £160,000, w-hile the rest of the ■securities remain as before, at £511,754. To keep the latter amount stationary, certain adjustments will bo required with the investments fluctuation account, as the rise and fall on over half a million pounds must be considerable in the space of half a year. Bills receivable in London and remittances in transit, cover £9.131,388. As compared with the September half-year, they, have more than doubled, but the trend is muck the same as in 1923. Here is evidence of the difficulty that all banks are faced with at present through balances accumulating in* London, when tho money is wanted in the countries of production, and can only be remitted there at a heavy cost. Bank premises continue at £350,000. Depreciation bus been allowed for in this connection, but to what extent is not stated. During the past half-year seven now branches have been opened, and tho above figure covers 400 branches, as well as the head office. Tho total assets have fluctuated during tho past five years, but tho trend has always been upwards. An aggregate of £75,850,253 gives some indication of the vast business controlled bv this institution, and how its well-being closely affects those of tho communities among whom it operates. Tho latest balance sheet looks herlthy for all concerned.

' capital, reserves, protit a nnum £ £ . £ Pfi r cent. If n r . 31, mm . . 3.012,440 3,237,313 277,057 10 Sept. Mar. 30, 31, 1019 1020 . 4,000,000 3,340,370 302.425 4 765,700 3,425,447 304,210 10 to -^ep. 30, 1:120 . 4 021 100 3,510,383 348.634 10 Mar. 31, 1021 " 4,065,200 3,551,008 403,032 •10 Spnf 30, 1021 " 5,000,000 3.RS0.023 340,100 10 *' P r • Mar. 31, 1023 5,000,000 3,760,133 350,210 10 30, 1022 " 5,864,360 3,827,438 338,014 10 Mar. 31, 1023 " S 07« R80 3,061.645 432.188 10 -if.pt. 30, 102.1 " 6,000,00) 4,054,530 302,804 10 Mar. 31, 1024 ♦Plus 1 '.. 6,000,000 4,213,150 458.621 >onus ol 106 per share. 10

Six months Bills discounted and loans, ct c.., to Total cirst-omvrs. assets Rabin l-'Ilclpil £ £ per crnt. Min*. 31. inio ... 20,04:1,453 64,608,521 46.28 Sf'pt. 30, imo _. 20,438,103 61,446,037 45.71 Mar. 31, jftao ... 30,023,441 70,780,042 42.71 Papt, :;o, 1920 ... 38,073,770 60,534.277 54.76 Mar. 31, 1021 ... 38,325,060 73,337,250 52,26 Sent. 30, 1021 ... 33,080,632 60.035,887 51.45 Mar. '31. 1022 ... 33.087,737 60,640,386 50.38 Popt. 30, 1022 ... 311,852,134 70,211,365 52.40 Mar. 31, 1020 ... 38,156,401 76.753,483 40.71 Sopt. ;io, io2;i ... 41,842,273 73,705,835 56.77 M;ir. 31, 1924 ... 41,036,000 75,850,258 64.10