NATIONAL BANK OF NEW ZEALAND.

Colonist, Volume XLVII, Issue 11436, 15 September 1905, Page 4

NATIONAL BANK OF NEW ZEALAND.

The report and balance-sheet presented to this shareholders at the thirty-third ordinary general meeting held at London, on the 4th, July, 1905, was as follows :— The Directors submit to the shareholders their annual report, with the .balance-sheet for the year ended Slsl March last. The gross profit for the year, after deducting interest on deposits, making full provision! for bad and doubtful debts,- applying £5000 in reduction of premises and; furniture. «nd contributing £3500 to the Officers' Pension Fund, amounts to £125,848 12s 7s. There is also at the credit of Profit and Loss Account the sum of £8403 6s 9,d brought forward from tfie previous year, making a total of £134,251 19s 4d. From this amoun-ti Has to be de~ ductdcr the expenses at fieaS office ariS braaiches, £73,511 18s S3, and rebate on: bills, £2430 Is 7d. This leaves a balance 'of £58,309 19s Id. THe directors recommend tha.t £20,000 of the above balance be transferred to Resarve Fund, which will then stand art; £230,000. An Interim dividend at" tlio rate of 10 per cent, per annum) was paid I In' January last., and the directors now propose tEat a furtEer d'ivl. denS &% thd sania rate: be paid, making a SividenH of 10 per cent, j for the yetar, In atEKtion, the Sidirectorfc recommend thlat a bonus of 2 per ©ant. r 6e 'declared on the ■ paid-up- capital -f! the Bank, making the past year's return 12 per cefit. per annum. These payments will "leare a balance of £8303 19s W to' Be earrield forward to th© current y«ar. TEe present capital of tEe company is £1,7)50,000, BivTae'd Into 100,000 sHai*os of £7 l"0s eacE and 100,000 shares of £10 eacH. None of tlie . latter have been issued, Tiut tHe directors have Wad under 'Consideration- lor some time past tHe desirability of adopting some plan wHerebj- the unissued shares should be c.onformat'le in" denomination witli the issueQ shares. Tliey Have accordingly 9~ecidect to fecommiMirl that the unissued sli-aros of £10 each ?fßbuld bte sub-divided into 100,000 £7 10s shares' and 100,000 £2 10s shares. To' carry out tills object a special resolution of tire snare, holders is necessary, and an extraoi'dinary general meeting lias ilhesefore Been 'convenea, to tote Keld at tKe conclusion of th"c annual Igeneral mde»ting (notice Kerewith") 1 for tHe purposeof considering akJfl", if tHougSrt fit, passing a resolution 'GiyaMmg sucH su'S-Qi vision 1 to !?e" maxJe. SHotiH the ' resolution Tse passed, and confirmee! a€ a meeting to ibe Hel9 sufb'seauently anH of wnacfi" 'due noflce will be given, ffio shareRoiaers will b"s 'askciS at' suoK confirmatory meeting to pass a further extraor9imary resolution wherciby of tBB 100,000 £2 10s shares, 90,000 sßares,- part th'erteof. shall ISe CoW^oll9ateo[ inlG 30,00?) '£7 , 10s sKare'S, anH VR6 remainder oaiv'celTefai. TRe effect of tEe passing of bEese resolution will d"c that the CotfaT nomiaat capital of ih'e Company will ISnSn" consist 0f"£1,725,Oon"gfvias9 into* 230',T»00 £7 TOs sffareß, rt wEioK 100,000 £7 10s shares only- Have "been Tssuied, Toavmi" 1 13"6,"000 £7 10s scares for future Issue by the Boiard as aniH whfen re'o ! u?'r'e"d. As provided Wv the articles of association', Two directors retirecl on the present occasion*. Mr Robert Logan and Mr ISdimiTid Charles Morgan, * wlio,

beiOg eligiblje, offered themselves Por 1 - flq-feleqtion^ The. audiitpjpsf, -ffltcssr'S Welton,; Jonas & Co., retired, but' bflered themselves for re-elec-BALANCE SHEEfc i 31st March, 1905. _r^; Dr. £ "s. d. Authorised capital «.. £1750000 0 0 in 100000 shares of £7 10s each and 100000 shares of £10 each Capital issued— 100000 shares of £7 10s each £2 10s per share paid up 250000 0, 0 Reserve fund ... .a. 310000 0 0 Notes in circulatibn ... 247126 0 0 friabilities on deposit and current accounts ... 3218481 G 2 Bills payable and other liabilities (including the provision tor bad and doubtful debts) 415309 8 11 Profit and lose account-* Profit f of the year^ including the . . balance brought forward ... 58309 19 1 Less interim dividend for halfyear ended 30th September, 1904, ... 12500 0 0 „ , • — 45809 19 1 £4386720 14 2 Cr. Coin & bullion at head office and branches • ...78259110 0 Cash at bankers and , . money at call .»» \\; 90446 6 1 Investments hi home and foreign securities ... 156387 18 .0 Investments in New Zealand Government securities 50000 0 0 Local bills discounted ... 212357 7 5 Inland, Colonial aud branch bills 368917 12 10 British 8i115... -. 601795 18 3 Advances on securities and current accounts ... 2043613 8 5 Landed property, premises and furniture 80616 13 2 £4386726 14 2 PROFIT AND LOSS ACCOUNT. For the Year ending 31st March, 1905. Charges, induing rent taxes, salaries, and expenses at head office and 42 branches and agencies ... 73511 18 8 Rebate on bills discounted, and not due at 31st March, 1905 2430.17 Interim dividend for half year ended 30th i September, 1904 12500 0 0 Balance carried down ..i 4580919 1 £134251 19 4 Balance Ist April, 1904 ... 8403 G 9 Gross profit after deducting interest on deposits, transfer in reduction of premises and furniture, contribution to pension fund, provision for bad & doubtful debts and contingencies ... ... 125848 12 7 £134251 19 4 Balance brought down ... £45809 19 1 WELTON, JONES & CO., Auditors. LONDON, July 8. «Tii« thir.ty-tEird. ordinary general meeting of the National Bank of New. Zealand was held in London last Tuesday, at Winchester House. Mr Robert" Loffan, who presided, said the Board were again, aibloi to present :a very, satisfactory balancesheet, and to maintain dividend and bonus paid, last year. On the .whole, New, Zealand ■enjoyed -a very prosperous year, .and' Jthene were few. indications! tfa!at Hois ordei* of things would be changed in any material particular during 1 the current twelve montns.- For the most part, all colonial trading and industr al enterprises were working satisfactorily* Farmers and graziers ttaidj &ad ai specially good yaai\ The progress of land settlement continued, and with this pi-jogresa the volume of imports and exports must go on gfrowin/g,. It was just possible tliat land values were rather inflated, but tne gentvral conditions were so favourable that he did not anticipate any serious set-bad^ at present* Turning toj the accounts, ha said that the reserve lund st'oojd a,t £.210,000. Tiheir- deposit^ and deposit accounts showed an expansion of £175,000, chiefly iii interest^jbearing deposits, and their bills payable an increase of £47,000. On the other side of the biaiamcje-sheet their co,in - , bullion, and cash iuad advanced by £146,000. Their investments also exhibited th« usual increase, the result being that they iheld ' nearly £7.1 00,000 in cash and injvestn eat a sjgainst liabilities to the l>,uolic not rnueibi in excess of £3,800,000— a (very satisfactory percentaige«i As regards the profit aaid loss account, the oluarges Bad grown by afocrat £3000. The. profit showed a reduction of ajbouti £10,000, about Half of which was real, and tine balance and addition to the amounts wMoh fJtey^ had' hitiherto been in the haibit of placing to their internal reserves. The real reduction in profit had been the result of itwo factorsfirst, an all-round rise of l-3rd per cent. In deposit raids, and, secondly, a disruption of British ex- 1 change rates, which, in consequence of t!he action of one of the Australian banks, came into operation last October. But for these unavoidable causes tie profit would have exceeded itlHj figures of the previous year,. The deposit rates bjad again fallen 1 , and efforts were fcfeing inadte to restore the exchange rates to figures which would give the Wanks a. fair profit" instead of, as at present, hardly any profit at all. It w(as proposed to add £20,000 to the reserve fund, raising it to £230,000, or within £20,000 of the paid-up capital. They fctad hitherto invested all tib»ir reserve fund outside the banfo, bait hiavingj refrard to tne amount at which it now sto.od, it . was a matteit for. consideration whether they required in future to place such: largo amounts to their published reserve fund, and wKether it was necessary or aQvislhjble to invest the whole amount outside thr» fctank's business. Witli regard to the dividend of 10 per cent., and the bonus of 2 per cent., tfi'a shareholders would understand that the bonus woiukl not be repeated unless the Board felt they were fully justified in paying 1 it. The directors further recommended that a grant of £3500 siffiouM tie made to the pension fund. He felt great confidence in the future of the ibank. Their business was sound and sncreaslnigV In the space of ten years they had 'built "up a large reserve fund', they field an adequate amount of coin and bullion, atotf iihey 'JielieVed that, rapid <as hfeid heen the bank's progress in the past, it would be fully maintained and surpassed in thti future. He conclukled b"y mofving the adoption of tTfe report,! which was secqntled 6y. Mr E. C. Morgian. A abort disciission followed, in the cour.se of which Mr Conquest expressed has djsappointnient at the gi'owfh" in the' expenses, and said that, -fn view of tKfeir losses, ifti the past the shareholders -were hardly receiving ttTie constidenation ■at Hie hands of the directors to wh'icK they were entitled. Mr Moss Davis sadd he was satisfied that the shiareffiblders would not object to the -increase in the expenses if the 'development of the business justified it. He believeti that the !>ank was in its infancy. Nothing could stop the progress oi- New Zealand. The report was .adoptod unanimously, ami the dividend • find ■fciomis agreed to.