UNION BANK OF AUSTRALIA

Otago Daily Times, Issue 22068, 26 September 1933, Page 4

UNION BANK OF AUSTRALIA

ANNUAL MEETING RISE IN NET PROFIT. (Feom Our Own Coerespondent.) LONDON, August 5. The Hon. Edmund W. Parker presided at the annual meeting of the Union Bank of Australia. The Premier's Plan, whick was now being applied in the States, he said, had effected a substantial reduction in the rates of interest charged to borrowers, whereas the corresponding reduction in the rates of interest allowed to depositors was necessarily much slower in operation. There was still some time to go before the dates of their older fixed deposits fell due, so that for some time yet they would be labouring under the same disadvantage. "In spite of this," continued Mr Parker, " I am very glad to say that we are able to show an improvement in our figures. Our net profit, after making provision for all bad and doubtful debts, amounts to £209,559, as compared with £160,953 last year, and, adding the sum brought forward, the amount is £300,523, compared with £250,963 last year. We have declared a dividend of 3 per cent, for the half-year, which, with the interim dividend of 2 per cent, already declared and paicl, makes 5 per cent, for the year. Although we are declaring a dividend of 5 per cent, for this year, I must still remind shareholders that we are not yet out of the wood, that business is still difficult, and' that profits are hard to make." SHRINKAGE OF £1,019,000. The total figures of the balance sheet for the year under review compared with those of the previous balance sheet showed a shrinkage of £1,019,000. On the liabilities side that was chiefly attributable to a decrease of £629,000 in deposits and £471,000 in bills payable, partly offset by increases of £49,000 and £32,000 in undivided profits and circulation respectively. On the assets side the decrease in specie and cash balances of £2,155,000 was largely offset by the increases in investments of £44,000 and bills discounted, loans and other securities, of £1,301,000, the latter increase being mainly due to taking up the Commonwealth Government's Treasury bills. Liquid assets amounted to about 7s 6d in the £ of their total liabilities to the public. Gross profits at £1.107.036 were £31,502 less than in 1932. but the total charges had fallen from £977.585 to £897,477. Although taxation at £239,668 was £34,182 less than for 1932, there was still no question that taxation in Australia and New Zealand was a most heavy burden, and one that called for substantial reduction, and this could only be brought about by genuine reductions in the domestic expenditure of the State Governments. BUTTER EXPORTS. The chairman then quoted at length the import and export figures for Australia and New Zealand. " The importation of butter from New Zealand and Australia," he said, " continues to expand, and for the 12 months ended June 30 last reached record figures—2,33B,674cwt being received from New Zealand and 1,981,901 cwt from Australia, compared with 2,068,000 cwt and 1,619,000 cwt respectively during the corresponding period of 1931-32. Despite the tariff of 15s per cwt, Continental suppliers also send us more butter, and the total importation from all sources necessitated a weekly average consumption of nearly 8000 tons. With this remarkable quantity to be disposed of it is not surprising that values have been on a lower level than at any period since the war. Since April there has been gradual"*improvement, and although values are not as high as one would like to see them, they are, nevertheless, about 14s per cwt above the lowest point. It is to be hoped that the preseut level will not only be maintained, but that the coming season will more than see the recovery of lost ground. " I think that all shareholders will recognise that we have again passed through a very trying and anxious 12 months, and the fact that the outcome has been more satisfactory is due in a very large measure to the great ability of our general manager and the hard work put in by the staff. I can assure shareholders that we have a very loyal and hardworking staff, and.l consider that they fully merit a word of thanks and appreciation from you." The report was unanimously adopted, and at, a special general meeting which followed new articles of association were unanimously approved.