£500,000 FOR DISTRIBUTION

Chronicle (Levin), 6 July 1946, Page 7

£500,000 FOR DISTRIBUTION

-Press Assoctation

! | ANNUAL REPORT OF BANK OF NEW ZEALAND I

By Telearavh—

: WELLINGTON, July o. The Bank of New Zealand leport was tabled in the House of Kepresentative' today. The profits, after providing for ex penses of managemeiit, and for all bad and doubtful debts, and other con tingencies, and after making provision for the aunual douation to the Provident Fund, are £304,079 3s Sd, to avIiu-Ii has to be added the balance brough forward t'rom last year £359,722 (5s 8d making a tptal of £753,801 10s 4d i Erom this has been paid: — Dividend oi. 1 preference A shares £43,75(1, interim ! dividend on C long-term niortgage i shares £(5152 Gs lOd, interim dividenc ! on D long-term niortgage shares £15, 38i !l'7s 2d, interim dividend on preferenct J B shares £18,750, interim dividend on ordinary shares £112, 5u0; total £190,53: !4s. This leaves £557,2(58 (5s 4d availablfor distribution and the directors pro pose tliat it should be disposed of afolloAvs: — Dividend on C long-term mortgage shares at 0 per cent. pe. annunv (£7031 5s) reduced by. ld fo. Levery lOd or part tliereof on account jof Social Hecurity charges aiul XTationa jiSecurity tax aniounting to £703 2s (5d leaving £0328 2s Od, dividend on D lo'ng-term mortgage shares at 71 per jeent. per annum (£17,578 2s Od) reduced ; by ld for every lOd or part tliereof £1757 10s 3d, leaving £15,820 0s 3d; dividend on preference B shares (making £43,750 for the year) £25,000; divi- , dend at rate of 4 per cent. on ordinary shares (making £202,500 for the year. equal to 7 per cent.) £150,000. Balance to be carried fonvard £300.119 17s 7d The gross proiit for the year amount ed to £2,099,040, an inerease of £122,505. Kx penses amounteil to £1,704,907, an inerease of £107,373. XPt proflt as above £394,079, an in erease of £15,192. Diffi.cult Trading Trading eonditions, generally, dnrir.t. the year have been difficult owing t Ihe contimied world wide shortago o eousumer goods. Tliis has naturalh militaled against a genoral inerease m advances to traders and until condi tions improvc to sueh an extent tha' goods are in more ample supplv, n great inerease in advances in this direi tion ean be looked for. There ar signs, however, tliat the tremendo': ilrive being made in Great Britain t inerease exports will sliortlv produm results and have a beiielicial elTect oi the. eeonomy of this country by in creasing the amount of goods avuilabh for sale and tluis providing an outlei

| for the large amount of idte capital. A? j the efFects of tliis are felt, trade rs will j no doubt require more aecbmmodalior i from their bankers to care for tio ; heaA'ie'r stocks they will.' require t earry. KeeOuditiouing of plunts, eu | largement of premises and the larg | arrears generally of building, are ai Ipotentia! aA'enues for tlie inerease o i adA ances. Industry and Farming | A number of o ve rscas'; miiiufac t uri nr concerns have . decided . to establish i l.iranches of their factories \n Xev, ■ Zealand. lu sunie cases tlie ne.c.essar\ eapital is provided t'rom overseas ea , tirelv, in otliers local eapital has bee . raised to supplement tluvt proA'ided l> Ihe parent concern. The Bank has ob tained a fair share of tliis business am ! is assisting bv. providing working capi ! tal by Avti.v of overdraft. The resultaui 'exjiansioit of urban iiidustries nuis have a bene.Jicial ell'ect on employmeni. In faet there is a present a shortag of labour. There has been a steady lAqiaymen of bank loans to farniers through t li > operations of the Governnieiit in pu1 chasing farms for rehabilitation o serviec-men. These purchases being fo jeash result in the release of larg fumls, and avIioii a liank loan is in ' voh'ed, tlie bank's advances show n i corre.s])onding reduction and there i.i also an inerease in deposit liability. rep Sreseuting the equity, Avith an incfeao !in the aiuount of cnsli on deposit li;j tlie Bank with the Roserve Bank. Finance for House Bniicling Tn order to assist in relieviug th: acute housing shorlage, various lora , bodies have obtained empowering legis 'lation authorising them to enter inte arrangements Avith financial instilu tions under Avhieh sueh local bodies are enabled to guarantce advances on ' newly eonst fucted residences in exces^ of' the usual trustee limits or limits i otberwise imposed by Htatute. A1 j ; vances guaranteed in this wav ])rovide i suitable investments for tlie long-tenn ; niortgage department of the Bank and arrangements have been eompleted I whereby the Bank will participate in the sehemes • inauguratod bv the Auckland and Wellington City Councils airi the Masterton Borough Coimcil. Al ' thougli the business so far entered i n t • under these arrangenients is small, i' 1 is antiei]»ated that it will assuirn greater ])ro])ortions Avhenever tii j sehemes become more widly knowu am' adequale supplies of tlie neeessar' j ( niaterials for the ereetion of (lwelling- j Ibeeoine avaifable. \