BANKING OPERATIONS

Timaru Herald, Volume CXLIII, Issue 20930, 8 January 1938, Page 6

BANKING OPERATIONS

PAST YEAR’S PROFITS Net profits shown in the annual reports published during 1937 by the 11 ordinary banks trading in Australia and New Zealand amounted to £3,115,285, compared with £2,840,763 in 1936, an increase of £274,522. Compared with 1934 the increase is £461,439. Current profits are still below the 1913 figure of £3,312,676, although the amount of shareholders’ funds employed has become much greated. Dividends declared in 1937 at £2,807,042 showed an increase of £203,391, as compared with the previous year, and a total increase of £319,054 since 1934. The proportion of net profits to average shareholders’ funds employed during the past year is still only 33 per cent, while the proportion of dividends declared to shareholders’ funds is 3 2-5 per cent.

Aggregate net profits and dividends for the last six years compare as follows: —

The highest profits were earned in 1928, when they reached £6,404,418 and dividends amounted to £5,213,456. Including paid capital of £45,464,487 the total of shareholders’ funds is £82,716,832, against £82,612,588 a year ago, and £82,564,474 two years ago. Reserve funds, including exchange and currency reserves, amount to £35,540,000 and undivided profits to £1,712,345. The results, which are summarised in the Australasian Insurance and Banking Record, cover balance-sheets dated from August 31, 1936, to September 30, 1937. They do not include the Commonwealth Bank of Australia and the Reserve Bank of New Zealand.

MARGARINE OUTPUT INCREASED According to statistics prepared by the British Imperial Economic Committee, the average weekly “invoiced delieverles” of margarine during the four weeks ended November 27, 1937, were 4290 tons. Tills compares with an average of 3798 tons in the four weeks to October 30 and 3465 tons in the four weeks to November 28, 1936. HOLME STATION SALE KEEN COMPETITION The first stock sale of the exporting season was held yesterday at the Holme Station yards, when about 500 head of fat lambs, fat sheep and store wethers came forward. All export firms were represented and bidding was keen, the prices realised being fully up to the rates ruling this week. Three pens of young store wethers sold readily to fanners. Sales were:

THE WORLD’S TIN CONSUMPTION ANALYSIS According to statistics published by the International Tin Research Development Council, in November, and issued by the Statistical Office at The Hague, world consumption of tin in the year ended September last totalled 177,443 tons, against 159,669 tons in the preceding year. World production figures for the same two periods were respectively 197,700 tons and 173,400 tons. The proportion of the world's tin production controlled by the International Tin Committee, which increased from 75.8 per cent, in 1933 to 87.1, per cent, in 1936, further increased in the six months ended September, 1937, to 88.2 per cent. World production of tinplate in the year ended October, 1937, was 4,090,000 tons, compared with 3,581,000 tons in the previous year.

PRICE OF GOLD During the year 1937, the London price of gold fluctuated very little, there being not more than 2/- between the highest figures and the lowest quotation for a fine ounce. At the close of the year the price was a penny or two below £7. Investors took fright in April, when rumours were afloat that President Roosevelt intended to put a higher value on the dollar and a lower price on gold. This caused a world wide selling of gold shares and base metals. After seven months this groundless scare did not affect the price of gold, while lead and spelter are down to about half the price they were and some other metals almost as much. NEW CAPITAL ISSUES Grealty increased industrial activity is shown by the new capital issues both in number and amount which the expansion of business in Australia has made necessary. New share issues made by companies listed on the Sydney Stock Exchange represented £7,700,000. In 1936 the amount called for was £2,800,000, and in 1935 it was £4,400,000. The sum of £6,750,000 was obtained in the boom year of 1929, and this has now been exceeded for the first time since the depression. The number of companies whose expanding operations required larger capital was 42 against 30 in the previous year. These embraced many callings including building, engineering, chain stores, breweries, gas, electricity, transport and textile manufactures.

Net profits. £ Dividends £ 1932 2,572,771 2,937,758 1933 2.685,613 2.541,425 1934 2,653.846 2,487.988 1935 2.632,990 2,482,841 1936 2,840,763 2,603,651 1937 3,115,285 2,807,042

s. d. s. d. Fat lambs . . . • . 20 3 to 25 10 Fat wethers . , . . 20 0 to 26 1 Fat ewes (best) . . . 19 0 to 22 7 Fat ewes (light) . . 14 0 to 16 7 2-tooth wethers . . . 19 0 to 20 0 4-tooth wethers . . to 19 0 Wean er pigs . . to 14 0