Report On Trading Of Bank Of New Zealand

Chronicle (Levin), 7 October 1949, Page 3

Report On Trading Of Bank Of New Zealand

■■ ^ ' 1 1 WELLINGTON,. Oct. 6.' A net profit of £399,980 was shown by the Bank of New Zealand for the financial year 1948-49, accordihg to the directors' annual report presented to Parliament today. This profit is £29,816 less than for the previous year. 'The gross profit less provision for contingencies, was £2,473,798, an increase of £237,321. Expenses were £2,073,137, an increase of £267,137. The report states that the gross profit showed a satisfactory inerease which was aecounted for by a higher average level of advances, the continuing increase in the fiumber of customers' aceounts and the increased volume and turnover of the bank's business. Generally investment income showed a redueLion due to the repayment, on maturity, of Government and local body loans. The profit and loss account showed that after providing for expenses of management, all bad and doubtful debts, other contingencies and the annual donation t.o the provident fund, profit was £399,980 to which was added balance of £430,976 16s 3d from last year, making £830,957 7s 6d. From this , had been paid a dividend on preference A shares of £46,250, an interim dividend on C long-term mortgage shares £6503 18s ld, an interim dividend on D longterm mortgage shares £16,259 15s 3d, an interim dividend on preference B shares £21,875, an interim dividend on ordinary shares £131,250, making a total of £22,138 13s 4d. This left £608,818 14s 2d for distribution. The disposal recommended was: — Dividend on C mortgage shares at 6 per cent £7031 5s, reduced by ld for every 13^, making £26,503 18s ld. Dividend on D mortgage shares at 7£ per cent £17,578 2s 6d, reduced by ld for every 13^d, making £16,259 15s 3d. Dividend on preference B shares (making £43,750 for the year) £21,875. Dividend at 3£ per cent on ordinary shares (making £262,500 for the year, equal to 7 per cent), £131,250. This leaves a balance of £432,930 0s lOd to be carried forward. The dividends are. to be paid in New Zealand currency. The main fluctuations in expenses over the year were all upward — salaries and allowances £61,459, general expenses £25,131, rates and taxes £180,307, total £266,987. The increase was stated to be due to the higher taxable profit, the all-round increased costs prevailing under present conditions, . and extra expense involved in handling the larger volume of business. Deposits, fixed and free, at the end of the financial year totalled £77,698,778, a decrease of £2,982,503. There had been a small increase in free de-, posits from the publie. The decrease in the total was represented in reductions in Government balances £2,300,000 and fixed deposits £700,000.