NATIONAL BANK OF N.Z.

Taranaki Daily News, 11 August 1932, Page 9

NATIONAL BANK OF N.Z.

\ ■■ ' . '■ VERY SOUND POSITION SHOWN. , A cabled summary of the accounts oi the National Bank of New Zealand for the year, ended March 31 showed the net profit at £117,836, a reduction of £30,540, and the 'dividend was reduced from 10 per cent, to 7 per cent, for the year. A copy of the report and balancesheet, which has come to hand by mail, confirms these figures, as well as other appropriations mentioned in the preliminary report. Gross profits, including £41,622 profit on the sale of gold and provision for bad and doubtful deibbs, at £600,324, were lower by £45,713, and there was a reduction of £15,263 in expenses of management, which amounted to £422,485. After a decline of £1,305,708 in the 103'1 year, the balance-sheet total registered an increase of £649,805 to £18,558,582. Total liabilities, other than shareholders’ funds amounting to £4,202,294, have increased by £695,968 to £14,356,288. This increase comprises an addition of £657,025 in deposits and current accounts at £12,314,328, of £18,267 in bills payable, and other liabilities at £1,080,808, and of £20,677 in notes in circulation of £961,152. A further reduction of £451,857 lias taken place in advances to £10,186,729, and bills discounted are £164,728 lower at £403,328. Liquid assets have increased by £1,278,573 to £7,327,492, owing to all-round increases. Coin and bullion at head office and oash at bankers has expanded £396,943 to £2,270,844; investments, at market rates, at £2,612,247, are £79,606 higher, with the principal increase in New Zealand Government securities, and there is a new item of £691,667 i nNew Zealand Government Treasury bills. Additions have taken place in bills receivable and remittances, in transit, which are £82,077 and £28,281 higher at £1,469,634 and £283,900 respectively. Landed property and premises appear at £641,032, a reduction of £12,183. Following the practice initiated in the previous year, investments are sundivided a>s follow, the previous year’s figures being given in parentheses: British Treasury and British Government securities, £1,303,944 (£1,308,875); New Zealand Government securities, £l,193,848 (£1,11'2,527); Australian Government securities, £114,455 (£111,239). The amounts are. stated to represent “market value” in the respective countries. A note to the balance-sheet states that the capital employed in New Zealand and Australia shows a depreciation of approximately £318,000. That amount, of course, is subject to the movement of exchange rates between England and Australia and New Zealand. The directors’ report refers with ucep regret to the death of the Hon. W. Demker Reeves, who was chairman of the hoard. Mr, Leo M, Myers was appoint-

tKUtaassmsKtfuaaKKnnm wu hw i'i min imi m n 11 11 iiupa—ed to the vacancy on the hoard. In its comments cn the bank’s accounts the Morning Post stated that a very healthy position was revealed. The profits had been well maintained in the circumstances, making it clear that the reduction in the final dividend was largely precautionary.