STATEMENT BY THE ACTING GENEBAL MANAGER.

Star (Christchurch), Issue 5349, 29 August 1895, Page 2

STATEMENT BY THE ACTING GENEBAL MANAGER.

Bank of New Zealand, Wellington, August 28, 1895. ' Sir,— l have the honour to hand you herewith a statement of the bank's profit and loss account for the year ending Maroh 31, last. In connection therewith I would point out that the profits last year were exceptionally low, for the following reasons : — (1) Owing to the crippled state of the bank's finances prior to the transfer of the head ofiice from London, and the consequent necessity of calling in advances the basiness had been run down to a very low point. (2) The floating of the £2,000,000 of guarantee capital In July, 1894, filled the bank's coffers with money, for much of which either no employment whatever could be found, or only nominal rates obtained, as it bad to be kept against debentures falling due,

ttbd lent at about one-half per cent per annum, whereas we paid 6£ per oent OS theße debentores. (3) The bank was •paying the h'-gh rate of 5 per oent on most of itß deposits. The bnlk of the money at this rate has now run off. (4) The heavy expenses of removing the head offices from London and Auckland to Wellington had to be met during the year. (5) On a number of acoounts en which interest had previously been charged, the new management deoided that it was inexpedient for the present to charge interest. This further reduced the bank's earnings. (G) London exchanges during the year were adverse, chiefly caused by the Australian banking troubles.— l am, &c, C. G. Andhews, • Acting General Manager.