PROGRESS OF BANKING

Poverty Bay Herald, Volume LXV, Issue 19622, 4 May 1938, Page 12

PROGRESS OF BANKING

EVIDENCE OF STRENGTH PROFITS IN ENGLAND The annual report of the principal British banks, known as the Big Five, have already reflected in broad outline the strength of British finance and commerce. Another valuable indication of the activity of British trading may be gathered from the results achieved by certain other British banks which specialise in financing overseas trade, states an article from His Majesty's Trade Commissioner at Wellington.

In this connection the recentlyissued annual statements of three of these banks may be taken as typical. The National Bank of India has again earned what is now a regular dividend of 18 per cent. The Eastern Bank repeats a dividend of 7 per cent, while the Mercantile Bank of India continues to earn an annual dividend of 12 per cent. The total assets of these three banks arc rCS 000,000, and two of them have reserves in excess of their capital. The total of their cash, investments and bills against their liabilities to the public is in one case G 9 per cent and in the two others 80 per cent. The results obtained by these banks bear witness to the vitality of British trading operations in the East. Other evidence of a moregeneral nature of the expansion of British trade in all parts of the world, as well as at home is furnished by the annual renorts'of British companies themselves. So far this vear 523 British companies have published their accounts relating to 12 months* trade. The aggregate results show that the total of net profits,' after payment of debenture interest was over £78 ' 000 ' 000 ' Dared' with £70.000.000 in the previous year The activities of these companies cover all branches of British trade from public utility undertakings, 'shipping, mining, coal iron and "tee to motors and aviation textiles retail business and many others.