UNION BANK ACCOUNTS

Taranaki Daily News, 11 August 1932, Page 9

UNION BANK ACCOUNTS

SOME MARKED CHANGES . Preliminary details of the accounts of • the Union Bank of Australia, Limited, ■ for the year ended February 29, showed ; a. contraction in net profit of £122,065 > to £160,954, necessitating a reduction of * dividend from 7 per cent, to 4 per cent, for the year. The balance-sheet, which ■ has been received by mail, reflects the > effects of exchange movements and ’ higher taxation. The report states that at the date of ’ balance there existed in the ordinary . course of the bank’s business differences ' in 'exchange which had since been re- . covered. To meet those differences the directors had made a temporary transfer from contingencies reserve to profit and loss account, which in due course would ; be reversed. After making that transfer, and after making appropriations toward bad arid doubtful debts and other contingencies, all of which had been provided for, gross profit amounted to £1,138,538, a reduction of £101,014 on the previous ! year’s amount. Together with this there was an increase of £21,052 in expenses to £977,585, due entirely to higher taxation. Salaries and allowances in Australia and New Zealand were lower by £19,3'42 at £508,647, and general expenses were reduced by £1379 to £128,101. Directors’ fees were lower at £9666, as against £lO,OOO, but income tax paid on the fees was £553 higher at £3071. Salaries of London staff and general office expenses totalled £54,249, a reduction of £l7lB, while taxation in Great Britain, Australia and New Zealand increased by £43,271 to £273,850. The balance-sheet total is £2,586,815 higher at £46,786,370, which is slightly above the 1930 figure. Deposits have risen by £2,660,237 to £35,844,650, and bills payable by £6ISS to £1,457,276. On the other hand, remittances in transit have advanced £641,535 to £2,685,059, while advances at £30,341,367 are £588,937 lower. An increase of £2,585,861 has taken place in total liabilities to the public, which stand at £37,765,406, while liquid assets have risen by £3,177,434 to £16,064,158. They represent about 8s 6d in the pound of liabilities, as against last year’s ratio of 7s 4d. Cash items increased by £2,544,477 to £10,980,080, while investments are slightly lower at £2,399,018. Paid capital remains at £4,000,000, while the reserve and currency reserve funds are unaltered at £3,350,000 and £1,500,000 respectively.