A Prosperous Year.

New Zealand Graphic, Volume XLVII, Issue 26, 26 June 1912, Page 5

A Prosperous Year.

Bank of New Zealand Returns—A Record in

Profits—Substantial Dividends.

Clt £ the annual meeting of sharef I holders of the Bank of New ZeaJ' I land, held at Wellington last week, the chairman (Mr. Martin Kennedy), in moving the adoption of the report and balance-sheet, said a good year had been experienced, the profits being the highest yet earned by the bank in any year since its commencement in JB6l. The directors recommended the payment of a dividend on all the shares of the bank, amounting on the ordinary shares to 15 per cent, for the year, and on the preference shares 10 per cent., the statutory limit. Last year the reserve fund was increased to £ 1,000,000 by the addition of £200,000 from profits, and the directors proposed i o place a similar sum to credit of the fund out of the profits for the year under review, making the total £1,200,000. With the amount proposed to be carried forward, namely, i£ 40,587, the reserve fund and undivided profits would amount to £1,240,587. A sum of £50(1,000 from the reserve fund was invested in British Government securities. Notes in circulation, which stood at £1,030,966, showed an increase of £53,720 as compared with the previous year. Deposits were less by £2,052,878 than the figures of a year ago, the decrease being due to reduction in Government credit balances, which, in the last balance-sheet, were abnormally high. Ordinary deposits, both fixed and free, showed a satisfactory increase. Bills payable and other liabilities showed a comparatively small fluctuation, being less by £71,937 than at March, 1911.

Money at Short Call. Money at short call, Government and other securities in London, stood at i £3,316,159. This amount, as compared with the previous year, showed a decrease of £3,394,080, attributable to the reduction previously mentioned in Government balances and to the withdrawal of funds from London to meet the active demand for accommodation in the Dominion. Coin and cash balances also showed at a lower figure, the amount under this head, plus bullion, being £265,t>89 less than at March, 1911, the reduction in liabilities already referred to rendering maintenance of the high cash reserve of last year uncalled for. The totals under th’s heading, together with the amount of bills receivable and investments in the colonies, were equal Io 55 per cent (or 11/ in the £) of the total liabilities of the Bank to the pub-

lie. Bills receivable in London and in transit stood at £2,406,266, an increase of £111,645 on the figures of the previous year. Investments in the colonies were less by £72,763 than at 31st March, 1911. Advances. Bills discounted were greater by £109,439, and other advances by £1,729,633, as compared with the figures of a year ago, and now stood at £1,221,075 and £9,667,748 respectively. During the year there had been a strong demand on the banks and other financial institutions in the Dominion for accommodation, and, although adopting a restrictive policy for some time past, the bank had responded reasonably to the eall. The present policy was to maintain the bank in a position to meet the legitimate requirements of established connections and of the Dominion’s industries and trade. With regard to advances, the greatest care would be bestowed by directors and the executive officers upon this most important branch of the bank’s business. Assets Realisation Board. Totals under this heading amounted to £136,356, as against £216,354 last year. The item “Sundry Assets Unrealised” had disappeared from the balance-sheet, practically all the Assets Realization Board properties having been disposed of. Landed property and premises, after appropriation now made of £25,000, stood at £420,538, as compared with £423,739 at 31st March last year. Profit and Loss. The profits, representing the work of the Jubilee year, showed at £396,182, an increase of £40,911 on the profits of the previous year, and, after making due allowances, the net profits for the year amounted to £331,182, as compared with £295,270 last year. The sum available for distribution was £305,587. The total amount distributed to shareholders would be the same as last year, namely, £ 125,000. Of the balance remaining, it was proposed to transfer £200,000 to the reserve fund, and to carry forward £40,587. Steady Progress. He noted with satisfaction the rapid growth of the reserve fund, which m 1906 stood at £81,294, and to-day, after the proposed transfer of the £200,000, would stand at £1,200,000. This accumulation had been made practically in

the course of the iast six years. As a consequence of adherence to a cautious poliev, the bank’s losses had been exceedingly light. It was this fiet, coupled with the prosperity of the Dominion and .the great expansion of settlement and production that had taken place during the last eighteen years, that had made this splendid achievement possible.