RECORD OF SAVINGS BANK

Taranaki Daily News, 1 May 1930, Page 14

RECORD OF SAVINGS BANK

EIGHTY YEARS OF SERVICE RAPID INCREASE IN BUSINESS. STRONG FINANCIAL POSITION. The eightieth annual meeting of the trustees of the New Plymouth Savings Bank was held in New Plymouth yesterday. Present: —Messi’s R. Cock, president (in the chair), G. W. Browne, C. E. Bellringer, J. McLeod and L. A. Nolan. Apologies were received from Messrs W. C. Weston and R. H. George. “In all branches there have been notable increases,” said the president in his address, “and I am sure that the year’s figures cannot be other than satisfactory to the depositors as well as to the board of trustees and the management. This is, especially so when we consider the cramped conditions under which the business has been conducted. When we first came into these premises in 1921 we averaged 30 transactions daily. This has increased to 140, and on one occasion we had as many as 350 transactions in one day. The number of depositors has increased from 1236 in 1920 to over 8000 in ten years.” The balance-sheet showed cash and bank balances amounting to £32,200 19s 6d, Government stock and local body debentures £60,007 IGs fid, loans on first mortgage of.freehold property and interest due and accrued £356,567 14s Sd, progress payments in connection with new building £8860,2s lOd, land £4OOO. office furniture and fittings, less depreciation, £3OO. . The liabilities are:- —Credit balances of depositors £429,884 15s 6d, staff piovident fund £641 15s lOd, profit and loss appropriation account —'balance can ied forward £31,473 3s 6d. The profit and' loss account showed interest on mortgages and investments amounting to £25,477 6s 4d, and on the other side interest added to accounts closed during the year £llO9 6s H iin terest added to open accounts £10,636 14s sd, charges and expenses, including. donations, £2720 Is 2d, while the net profit for the year was £6Oll- 4s.

TRIBUTE TO STAFF. “I. am. in the office almost daily,” said the president in moving the adoption of the financial, statements, “and jvish to express on behalf of the trustees our appreciation of the loyal service of the management and the staff. I congratulate them on their personal interest in tlie welfare of the institution and the goodwill that exists between them and the public. This has undoubtedly done much to popularise what has now become known as the people’s bank. On looking into’ the statement of assets and liabilities it will be realised what a strong position the bank is in an that safety to depositors has been the board’s first consideration:” Continuing his address, the president said: According to the' Savings Bank Act we should hold 10 per cent, of the balances, due to depositors as liquid cash. ". From ..the ’ liabilities : it will be seen'that this is shown as £430,526 Ils 4d, therefore it is necessary for us to hold £43,052 as a liquid asset. This is made up as follows:—Gash and fixed deposits, £32,200; Government stock, 1933, £28,918; total, £61,118. ' This gives us a surplus of £IB,VW more than the £43,052 required 'by the Ac£. * In addition to this we hold other Government stock £23,000, and local body debentures £7500, making a total oi £91,618 available cash in case of an emergency—a very strong financial position indeed. . Deposits received during the year amounted .to £367,531 9b sd, as against £285,044 2s Id last year, an increase oi £B2 487 7s ,4d. The withdrawals are -shown as £206,993 19s 3d, an increase of £53,842 Is 5d over last year, the excess of ’deposits over withdrawals for the year being £68,538 10s 2d. This I claim to be very satisfactory considering that so many were out of employment dining the year. Interest paid to depositors this year was £16,771 16s 7d, compared with £13,024 5s Id last year, an increase of £3747 Ils 6d. Interest received on mortgages and investments* amounted to £25,143 16s 2dj an increase of £5255 16s. ' -LOANS ADVANCED. Loans advanced on first mortgage during the year are shown as £89,165. To ■this we may add £14,658 invested in Government stocks and local body debentures, making a total of investments for the year of £103,823. At present we hold 276 mortgages amounting to £354,252.' That the trustees have exercised every care in selecting these se-. curities is realised when we find only three of our mortgagors have not paid their interest due in March. The total amount owing does not exceed £45. All the mortgages are gilt edge; even these three are worth. 40s in the £1 to the advance made on them. The policy adopted by the .board of encouraging mortgagors to repay their loans in small sums is fully appreciated. Every quarter day repayments of £5 or multiple thereof are. being made. People realise that they are slowly reducing their liability. They are also reducing their quarterly interest payments. The profits for the year are £6Oll 4s, as against £5094 15s 6d for 1929. From this amount we have written off £241 9s premiums paid on purchase of Government stock. This will allow this stock to be shown in the assets at face value.

With the view of having all new furniture in the new banking chamber, the board decided to depreciate the office furniture by £268 12s 3d. This added to the £241 9s and deducted from the profit leaves £5501 2s 9d to be added to the reserve, which noyv stands at £31,473 3s 6d. The deposits in the penny branch amount to £635 15s 2d and withdrawals £405 Ils 7d, an excess of deposits of £230 3s 7d. This is not nearly what it should be considering the number of children in the town and district. I feel it my duty to appeal again to parents to start their children in this branch and encourage them to save their small sums. Prompt attention and every encouragement is given to the children at the bank.

It is very gratifying to record a marked increase at the Fitzroy branch. The deposits increased from £8094 10s 7d in 1929 to £18.207 19s lid last year, an increase of, over £lO,OOO. Two h,undred new accounts were opened and 44' closed, an increase of 156 depositors. We have 617 accounts in this branch.

PROGRESS AT FITZROY.

The question of providing our own premises at Fitzroy has been occupying my mind for some time. I consider that the.time is now opportune to purchase a suitable section so that we will be ready when our present lease expires. I have to thank you for the time you have devoted to the business of the institution and the thorough manner in which you have investigated the securities that have been before the board. 'Seventy-seven applications were dealt with, 43 being granted in full, six accepted reduced amounts, while 28 were declined. I have also to thank the manager, the staff and the auditors for the efficient manner in which the 'business has been conducted. As president of the bank I appreciate the prompt manner in which the books have been made up and the interest paid to the depositors, and I must congratulate the manager on being able to do this. When addressing you last year I had hoped to hold this meeting in our new building, but through unforeseen circumstances it is not quite finished. For the last 25 years it has been my one ambition to see the institution in a home of its own, and it is with great pride that I look forward to the actual opening. I heartily congratulate the 'board of trustees on the erection of such a substantial building and claim that for its size it is one of the best bank buildings in New Zealand. I take this opportunity to invite the public to inspect the building and its appointments and to impress” upon them that it is their bank and trust that they will make full use of the services placed at their disposal. The opening day will be announced in due course. “The bank was established in 1850,” said Mr. Cock in conclusion, “and has been in business 80 years. I have been a trustee for *27 years, and the only loss made during that long period did not exceed £l5O. This loss was made before the board decided that all securities offered should be inspected by the true- ' *• The deputy-president, Mr. G. W. Browne, in seconding the motion, contra tula ted the president in the continued expansion of the bank’s business. Continuing, Mr. Browne said: I look upon this annual meeting as an extraordinary one. For 80 years we have carried on as tenants and at last a home for ourselves is nearing completion. This has been brought about mainly, by your efforts., For many years vou have never let an opportunity pass of getting the bank into premises of our°own in the business centre of the town The extraordinary > growth that .has taken place in all branches has proved that the steps taken have been fully justified. The business has increased to such an extent that it has become almost impossible to cope with it in these premises. I wish to endorse youi remarks of the loyal service of the management and the staff, and I .congratulate them on the efficient manner in which they have carried out their duties under the circumstances. Mr. McLeod spoke in eulogistic terms of the president’s long and successful term of office, and said the erection of the new bank was a fitting compliment to his untiring efforts in the interests of the institution. Mr Bellringer and Mr. Nolan ako expressed pleasure that the president’s efforts were nearing fruition and trusted that he would be spared to carry on as president in the home he had taken such an active part in providing. o The motion was carried. Messrs Tuff and Wynyard were reappointed auditors.