BANK OF NEW ZEALAND.

Timaru Herald, Volume XVII, Issue 817, 18 November 1872, Page 4 (Supplement)

BANK OF NEW ZEALAND.

The ordinary half-yearly meeting of shareholders was held on the 23rd ult, m the chief office, Queen street, Auckland, Thomas Russell, Esq, Chairman of the Board of Dii rectors, presiding. Tha Inspector read the advertisement convening the meeting, the minutes of the last half-yearJy meeting, and the report and balance sheet, as folio \vs : — Twenty-second report of the Directors of the Bank of New Zealand to the half-yearly general meeting of the proprietors, held at the banking-house, Auckland, on Wednesday, the 23rd day of October, 1872. The directors have to report that consequent on the cheapening of money, and its abundance m the colony, with the absence of an active demand for its employment, profits do not compare favorably with past half years. They have, however, to congratulate shareholders on the maintenance of the Bank's leading position, as evidenced m the attached statement, and express a hope that development of commerce will soon offer more profitable employment for.the Bank's resources. £ s. d. The net profit at 30th Sep, after making provision for all known bad and doubtful debts, aud for usual appropriations iv reduction of Bank premises aud furniture accounts, amounts to ... 38,760 2 0 To which has to be added — Balance of undivided profit at 31st March, 1872 7,600 3 0 Making a total available for division of ... ' ... £46,360 5 0 The following appropriation of which is now recommended — To payment of dividend at the rate of 10 per cent, per annum .. £30,000 0 0 Bonus of 2s 6d per share, equal to 24 per cent. per annum 7,500 0 0 Balance carried to profit and loss new account ... 8,860 5 0 46,360 5 0 The dividend aud bonus will be payable at the head office, Auckland, to-morrow, the 24th October, aud at branches on receipt of advice. For the Board of Directors, Thomas Russell, President. Aggregate balance-sheet of the Bank of New 'Zealand at 20th September, 1872, including London Office balances at 30th June, 1872. Dr. £ c. d. Bank stock 600,000 0 0 Reserve fund 180,000 0 0 Notes m circulation ... 322,166 0 0 Bills m circulation ... 900,324 19 8 Deposits aud other liabilities 3,212,444 13 9 Balance of profit and loss account at 31st March, 1872 7,600 3 0 Net profit for half-year ... 35.760 2 0 £5,261,295 18 5 Cr. £ s. d. Coin and cash balances ... 385,625 9 9 Bullion on hand and m trausitu ... ... ... 492,341 5 3 Government securities ... 349,528 14 3 Notes and bills of other Banks 3,117 10 8 Landed property " 22,796 8 4 Bank premises, furniture, aud stationery ... ... 71,425 17 0 Insurance account ... 898 9 0 Bills receivable, bills discouuted, aud other debts due to the Bank ... 3,935,562 3 9 £5,261,295 18 5 PROFIT AND LOSS ACCOUNT. £ S. d. To dividend at the rate of 10 per cent, per annum 30,000 0 0 Bonus of 2s 6d per share, equal to 2£ per cent, per annum ... 7,500 0 0 Balance carried to profit and loss new account 8,860 5 0 £46,360 5 0 By balance of profit at 31st March, 1872 7,600 3 0 Net profit for half-year, after writing off bad debts , 38,760 2 0 £46,360 5 0 RESERVE FUND. -To balance £180,000 0 0 By balance from last statement £180,000 0 0 The Chairman, m moving the adoption of the report, said : Gentlemen, — It has been the good fortune of the directors of the Sank ever since its institution to be able, at each half-yearly meeting, to place before you a balance-sheet which commended itself to the shareholders for adoption — that has not required any apologetic or any explanatory speech from the chair to satisfy your minds as to the results obtained. We are again fortunate m this respect, for though our dividend is at the rate of 2$ per cent, per annum less than it has been m the past half-year, I am sure those who have been observing the course of events during the last twelve months — the increase of wealth m the colony, the lowering of the rate of interest throughout this and other colonies, and the more limited demand that has prevailed ; for banking accomodation — will be prepared for a slight reduction of dividend to-day. I think you cannot help regarding the results obtained as highly satisfactory, and a dividend I at the rate of 12£ per cent, per annum as more than the equivalent of 15 per cent, under the circunistauces of twelvemonths ago. I may state shortly by way of explanation that during the past half-year, although our officers m every part of the colony have been anxious to employ the bank's resources m every direction that they could do so with safety,— although they havebeen as active, zealous, and energetic as ever, yet we have not been able to employ within the colony by £600,000 so much of the bank's resources as we were employing six months ago. Thers has been much less de-

j rhand for banking accommodation, within the . fleld of operations occupied by this bank, ami ! even within the colony during the past half year as compared with previous half years, but. apart from a restricted demand for banking accommodation, the diminished rates of intei'est on advances will go fur to account for our diminished dividend. The causes that have brought about this result are, I think, causes for congratulation to all of us ns colonists, and I am sure there is no shareholder who will not be satisfied with the smaller dividend when he sees that the causes which have operated to bring about such a result are calculated (o produce so much good to New Zealand. The increased value of wool, the sudden rise m the price of that staple has introduced into the colony n large amount of capital, and many of our customers who formerly required accommodation from the bank are thereby rendered independent of such assistance. Hence the limited demand for bank advances. This prevails not only here but m all the other colonies that are subject to the same condition as wool-pro-ducing countries, that it uffects all other institutions that are occupying the ground, or are engaged m a field of operations such as we occupy. I will read to you a few extracts from the reported proceedings of kindred institutions to this with the savuo field of operations. You will see that the causes which have effected the diminution of the rate of dividend m the Bank of New Zealand have also affected them. ***** # # The chairman then read a report of another bank, and m reply to n question as to the name of the bunk, whose report we had quoted, said, from the report of the Union Bank of Australia, a bank occupying here precisely the same field of operations that we do. Therefore, you will perceive at once that the causes which have affected our operations and diminished our dividend have also affected them m like manner. I may be permitted to congratulate you upon the lending position now held by the Bank of JJew Zealand m the colony. There is no need to quoto figures for the information of shareholders who are present or who reside within the colony, and have access to the bank returns which are published periodically by the Government, and which theycansceforthemselves. Butthereare shareholders who have not access to these returns. These returns give the result of the operations m the colony only, and do not include business transactions by the banks elsewhere. Now from the recently published returns you will observe that of the notes iv circulation which amount to a total of £651,539, tho amouut of the Bank of Now Zealand is £344,085, as compared with £307,454 of all the other banks, or more than half the note circulation of the colony. As to deposits, the business of which ia divided between the four or five banks m the colony, they amount to a total of £3,903,224. The deposits m the Bauk of New Zealand are £1,946,161, ns compared with £1,957,063 m the other banks, or about one-half of the whole. Tho discounts and advances amount to a a total of £3,627,141. Tho Bank of New Zealand discounts and advances amount to £1,977,946, ns compared with £1,649,195 by the other banks, or more than half or the whole amount of bauk advances made m New Zenland. Gentlemen, wo hove, as these figures show, a large and valuable business, and wo occupy the leading position m the colony. We congratulate you on such results. You will thus see that the field here is fully occupied, that not only this bank, but other banks doing business m this country have abundant resources available for all legitimate banking operations m Now Zea- 1 laud, and yet this is the field of operations referred to m the prospectus of another foreign bank about to bo introduced, who purpose taking up ground not already occupied. — While we nil regard the past and present with pleasure and satisfaction, we invite you to look to the future with confidence. Your directors, and all the olficers of this institution, take a more than pecuniary iuterest m its management and success. We regard its operations ns a great colonial institution with pride and pleasure, and you may rest assured that no efforts shall bo spared to maintain the bank m its present leading position, and we ask you, gentlemen, everywhere to co-operate with us to so desirable an end. — The Chairman concluded by moving that the report be adopted, printed, and circulated for the information of tho shareholders.