REDUCED DIVIDEND

Wairarapa Times-Age, 20 June 1941, Page 4

REDUCED DIVIDEND

BANK OF NEW ZEALAND CHAIRMAN ON POSITION & OUTLOOK. BONUS TO STAFF MAINTAINED. (By Telegraph—Press Association.) WELLINGTON, This Day. Moving the adoption of the report and balance sheet of the Bank of New Zealand at the annual meeting of shareholders, Mr T. A. Donnelly (chairman) announced that it was proposed to pay a further dividend of three per cent, making eight per cent for the year. Explaining the reduction from the former ten per cent dividend, Mr Donnelly said: "You may recall that at the last annual meeting I made reference to a decline in the bank’s trading profits, explaining that they were insufficient to meet outgoings and pay a dividend of ten per cent to shareholders, but that a substantial sum set aside for British income tax had been released and taken back into profits, enabling the ten per cent dividend to be paid. The result of this year's workings under similar restrictive trading conditions, but with even heavier taxation and an uncertain outlook for the future, have made it necessary for the board, much to its regret, to reduce the final dividend from five to three per cent.” The bonus of 71 per cent to the staff was being maintained, said Mr Donnelly, who pointed out that the higher cost of living had been recognised by the Arbitration Court, which had granted a general five per cent increase to award workers. The bank staff did not participate. I may say,” Mr Donnelly continued, that the bank’s reduced earning power and uncertain conditions made it necessary to limit annual salary increments to the staff to officers on scale and those who received promotion during the year.”