BANKING BUSINESS.

Otago Daily Times, Issue 19529, 11 July 1925, Page 17

BANKING BUSINESS.

QUARTERLY RETURN'S. GOOD MID-YEAR SHOWING. (From Oise Own Correspondent.) WELLINGTON, July 10. The returns issued by the six banks operating in Now Zealand for the June quarter, when compared with the figures for the corresponding quarter of last year, disclose a very satisfactory position; in fact, the best mid-year showing for some time. The salient features may be summarised us follows: — Free deposits Increased £2,100,410 Fixed deposits increased .. •• 1.C73.574 Advances increased 12.050 Discounts increased riS.l2B Noto circulation increased .. .. 250,720 Coin and builion decreased .. .. 117,230 It will be noted that while the credits — that is, the fixed and free deposits—increased the huge sura of £3,834,323, the debits—that is, the advances and discounts —expanded by only £50,183. , Taking the three classes of deposits the aggregates compare as under; — I,inu 1 (I*)J TIITIA 1H95.

The Government deposits show a neavy decline, but at this time of the year there is not much revenue coming in, and the shrinkage is therefore not of any great significance. The increase in the free deposits or current account balances amounts to £2,160,440, equal to about 8 per cent. All the banks shared in the increase as will be seen by the table appended;—

The Commercial Bank, the Bank of Australasia, and the Union Bank show the heaviest gains. Relatively the increase in the free deposits in the June quarter is quite a normal movement for the returns for produce shipped will have come to hand. The increase in the fixed deposits, which is large, was shared in by all the banks, as shown below:—

The banks would no doubt like to see a larger volume of fixed deposits, for which there appears to be considerable competition just now. The aggregates of the free and fixed deposits for the June quarter for each of five years are given in the appended table;—

Passing on to the advances, the total for the quarter was £42,421,049, as compared with £42,408,993 in the June quarter of last year, and the figures of the several banks compare as under

Increases are shown by the Bank of New Zealand, Bank of New South Wales, and National Bank, the others showing decreases, especially the Bank of Australasia. After dropping for two years the discounts exhibit a fairly large increase, as will be seen by the following table:— •

The Bank of New Zealand and the National Bank show increases, but the others show smaller discounts, the decrease in the Commercial Bank figures being heavy. The aggregate of tiro advances and discounts for the June quarter of each of the past five years are given in the table appended:—

Tho totals are fairly close in tho last two years, but are very much smaller than in the slump period of 1921. Tho most interesting comparison that can be made is by taking the two classes of deposits which represent the amoupts borrowed by tho banks from the public and the advances and discounts which give the amounts borrowed by the public from tho banks and showing how tho, parties stand. This is disclosed in the table appended:

Comparing 1925 with 1921, it will be seen that there is a complete transposition. In the earlier year owing to the slump the borrowings from the banks were exceptionally heavy, now the customers of the banks are well in credit. The same comparison with the quarterly figures for the past six, quarters is given below:

The note circulation for the past quarter totalled £6,893,848, as compared with £6,643,119 in the Juno quarter of last year, the increase being £250,729, which shows that the people are spending more. The coin and bpllion hold by the banks last quarter, ’though £147,230 less than was held in the corresponding quarter last year was more than cover for the note circulation. Tile metal reserve'was £7,698,516, and the note circulation £6,893,848,’ and from the latter there must be deducted the legal tender notes hold by the banks and, therefore, not actually in circulation. The figures as a whole reveal a very satisfactory position, due to the excellent season that the country has enjoyed, both as regards volume of production and high values. If the coining season is as good the prosperity of the dominion would be most marked.

June, 1924. Juno, IDJo. Increase. Government deposits Free deposits Fixed deposits .. £3,977,321 1. 28,330.700 .. 19.292,552 £3,087.080 30,497,209 20,900.428 •£889.041 2,100.449 1.073,874 Totals .. £51.606.U33 •Decrease. £51,551.315 £2 1U4.0S2

Bank 3uno.l724. Juno, 1025. Increases. New Zealand .. £12.917.455 £14.081.439 £1.163,984 Union .. 3,435,321 3,715.770 280.449 N.S. Walds .. 3,130,353 3.300.6G5 170,312 Australasia .. 2,702,297 3,031.940 209.G43 National .. 5,206,438 6,384.240 117,803 Commercial 324,800 083.140 168.253 £28,336.700 £30.407.209 £2.100,449

Bank. June, 1024. June, 1025. Increases. New Zealand .. £0,911,512 £10.404.187 £402,075 Union .. 2.200,631 2.585,588 375,057 N.S. Wales .. 2,602,403 3.220.G31 627,138 Australasia .. 1.538,838 1.705,518 166.(580 National • • .. 2,770,854 2,783,640 3,705 Commercial .. 25,224 257,853 7.620 £10.202.552 £20.066.426 £1.673.874

June Fixed Free Total quarter. deposits. deposits. deposits. 1921 .. £10.240.402 £20.204.033 £45.511.095 1922 .. 10,342,413 25,040.473 41.388,880 1923 .. 17,400.748 28,270.204 45.082,952 1924 .. 19,292.552 28,336,700 47,029,312 1925 .. 20.960.420 30,497,209 51.403,035

Bank. June, 1024. June, 1925, Increases. New Zealand Union .• N.S. Wales Australasia National — Commercial £18.272,735 .. 5,103.070 .. 5.048.488 4,912,202 .. 8.005,845 .. 1,006,053 £18.722.237 4.004.008 5.099.803 4.472.505 8.115.002 1.046.801 £449.502 *130,002 51.405 *439,697 109.157 *19,249 £42,408,903 £42,421.019 £12,050 •Decrease.

Bank June, 1024. June, 1925. Increases. Now Zealand .. £870.880 £024.120 £53,271 Union 52.200 4C.827 *5.442 N.S. Wales .. 100,054 157,401 *2,500 Australasia 120,243 120,761 •5.482 National .. 219.457 223.653 4,196 Commercial ■17,081 41.825 •5.S5G £1.476.563 •Decrease. £1,511,720 £3S.127

Juno Quarter. Advances. Discounts. Totals. 1921 £51,449,528 £2,935,959 £54,385,485 1922 44,438,917 1,717,017 48,156,934 1929 40,227,094 1,481,180 41,711,274 1924 42,408,099 1,470,593 43,885,586 1925 42,421,049 1,514,720 43,935,760

June Quarter. appouuuu. ■ Deposits. Advances. Excess of Deposits. ID21 £45,311,095 £54,385,485 £8,874,390* 1922 ... 41,388,886 46,155,034 4,767,0-18* 1023 45,682,052 41,711,27-4 3,071,678 1024 47,620,312 43,885,586 3,743,726 1023 51,463,635 * Excess 43,035,760 7,527,860 of advances.

Excess of Quarter. Deposits Advances. Deposits. March 1924 £47,033,203 £44,403,524 £2,620,760 June 1024 47,620,312 43,885.58*5 3,743,726 •Sept. 1924 45,122,025 43,020,081 1,108,044 Bw. 1924 44.676,409 45,036,454 1,250,055* March 1325 40,807,228 43,730,262 6.166,966 June 1925 51,463,635 53,935,760 7,527,866 * Excess of advances.