BANK OF NEW ZEALAND

Waikato Independent, Volume XXIII, Issue 3071, 16 June 1923, Page 5

BANK OF NEW ZEALAND

ANNUAL MEETING DIVIDEND SAME AT LAST YEAR By Telegraph—Special to Independent. WELLINGTON, Friday. The annual meeting of proprietors of the Bank of New Zealand was held to-dav. The chairman of auditors (Sir George Elliot) presided. The chairman inoved the adoption of the report anu balance sheet,, which have already been published, and in doing so he said: You will have seen from the report that it is proposed to pay for the full year the same rate of 'dividend as for the preceding year, viz., 10 per cent per annum on the preference “A” shares, and two shillings per share on. the preference “B” shares — both of which issues are held by the Government of New Zealand —and 2/8 per share on tile ordinary shares. The whole dividend for the year on preference “A” shares, aii interim dividend of 1/4 per share on the ordinary shares, and the proportionate dividend upon the preference “B” shares were paid in December last. Compared with the two previous years, last year shows a considerable falling off in profit. This is accounted for chiefly by loss of interest consequent on the red fief ion of over three millions in our advances within the Dominion; by reduction, too, since the New Year, in the rate of interest charged upon our best accounts, and by the lower rates obtained for a large proportion of our funds in London. The large amount of funds that we have thought fit to hold outside the Dominion has often been the subject of unfavourable criticism, but the wisdom of our policy was proved during the financial depression that set in towards the end of .1920, when, by realising our London and Australian investments, we were able with comparative ease to meet all legitimate demands. The policy of the Board is to maintain a position of great strength and never to subordinate safety for profit. To this end we keep a large portion of our resources in a readily realisable form, even thought by so doing our profits suffer.

Reserve Fund. —The proposed addition of £150,000 to the reserve fund will bring the .fund up to £1,825,000.

Carry Forward.—The balance carried forward shows a slight reduction and now is £421,957—a sum more than sufficient to pay a year’s dividend. Landed Property, Bank Premises, Etc. —We do not propose on this occasion to write down our landed property and premises which figure in the balance sheet at nearly three-quarters of a million less than the land tax valuation. : ' ' '• • . Advances. —Advances within the Do* minion, which in 1921 reached uncomfortably high figures, show a decline of £3,511,000 for the past year, but the position is by no means so satisfactory as the bare figures might indicate. The reduction is due chiefly to repayment of the exceptional advances made to traders during the period of overimportation in 1920-1921 and to the improved returns received for their produce by our substantial farming customers.