THE BANK OF NEW ZEALAND.

Star (Christchurch), Issue 8808, 21 December 1906, Page 3

THE BANK OF NEW ZEALAND.

I HALF-YEARLY MEETING. TPeb Pbess Association.] WELLINGTON, December 21. The half-yearly meeting of shareholders in the Bank of New Zealand was held to-day. The chairman of directors, Mr F. de C. Malet, said that it was not customary to submit a bal-ance-sheet at this meeting, but the shareholders would be pleased to know that the business of the bank showed a very satisfactory increase under all heads. The profits for the half-year which ended in September last were greater than those for the corresponding period last year. It was his pleasing duty to .announce that an important epoch in the history of the bank was reached on December 17, when the Assets Realisation Board was dissolv ed. The amount of debentures issued by • the Board outstanding on that, date was £458,000. These had smce been cancelled, and the remaining assets of tlie Board would pass to and be vested in the bank under the Act of 1903. With a view' to removing every obstacle in the way of the payment to shareholders of some better return by way of dividends, and of building up a strong reserve fund, the directors had given considerable consideration and thought to the affairs of the Assets Realisation Board, and had taken advantage of Clause 27 of the Act cf 1903 to request the Board to transfer to the bank all mortgages, contracts and other securities for lands sold and taken in exchange for debentures for a corresponding sum. The amount of 'these mortgages, etc., on July 81 last was £371,410, and this fium, with accrued interest, £5061, was paid over to the Board in tlie form of its own debentures, thus reducing the outstanding debentures from £855,000 to £483,000. The total properties of the Realisation Board were valued by tb* Valuer-General on July 31 last at £510,085, and the liabilities at the same timo at £489,661, showing a surplus of £20,424. Apart from its effect upon the future prospects of the bank from a shareholder's point of view, the extinguishment of the Assets Board also jpovers the discharge of the contingent liability of £2,680,285 incurred by the country in 1895. He congratulated the shareholders of tlie bank and the country on the satisfactory completion of the transaction. The profits of the bank for the half-year justified the passing of a dividend of 5 per cent. Should a further 5 per cent be paid to the ordinary shareholders for the next half-year, making 10 per cent for the year, the jpayment to the preference shareholders would be 2_ per cent ad- . ditional to the 5 pei* cent now paid. Reference was made to the change in the managership and the appointment of Mr Callender as general manager. The directors had every confidence that the management would be efficiently and safely conducted. Mr Watson, a director, in returning thinks for his re-election, congratulated the shareholders and tho Government oh the position attained. The future of the bank was as promising as that of any bank in the world. Mr Martin Kennedy, another director, said that thanks were due to the Assets Board for its judicious manage, ment. Mr Beauchamp, also a director, expressed a hope that shareholders would be content with moderate profits and build up a reserve to make the bank the strongest in Australasia. A vote of thanks was carried to the directors and staff.