THE COMMERCIAL BANK OF AUSTRALIA

Dominion, Volume 11, Issue 109, 25 January 1918, Page 10

THE COMMERCIAL BANK OF AUSTRALIA

OFFER TO BUT NATIONAL BANK OF TASMANIA. The Commercial Bank of Australia, Limited, which already has branches at Ifobart, Launceston, and other towns hi Tasmania, has made an offer to the National Bank of Tasmania, Limited, to purchase, as a going concern, the asse'.s and business of that bank, states the Australian Press. It is understood that the offer, which amountß (clear of all expenses in connection with sine carrying out of tho purchase) of £6 15s. per share, together with Interest at 7 per cent, per annum on tho paid-up capital from the last halfyearly balance day until completion of the purchase, has. after full consideration, been accepted by the board of the 1 National Bank of Tasmania, Limited, subject to ratificat-'on by the shareholders at a meeting* to be hold for that purposo early next month. Being a cash purchase,, the transaction will not involve any issue of fresh capital. Prinoipal items in the latest available financial review of the Commercial Bank of Australia, Limited (wheh was made at June 30 last) wore--Capital, preferential, £M 17,350; do., ordinary, £95,659; notes, £61,129; bills. £232.856; deposits-Govern-ment, £636,727; do., private, £7.449,173; liquid assets, £4,6C6,988; real CBtatc, £447.940; advances, etc., £4,990.257. The balance-sheet total was £10.346,896. Gross profits for tho first half of 1917 amounted to £158,786, and the net earnings to £64,370. At the date of the balance the sum available for appropriation was £71,753, which sufficed for tho payment of a dividend of 4 per cent, per annum; an appropriation of £15.000 to reinstatement of capital, and of £5000 for reduction of bank premises account, a remainder of £9106 being carried forward. The statement of accounts of tho National Bank of Tasmania covering the half-year ended May 31 last showed a net profit of £15.160. The dividend paid was on the basis of 7 per rent, per annum, which required £6834. Dividend tax accounted for £342. and £1500 was added to reserves, £1000 being written off premises account, and £5485 carried forward. At the dnto mentioned the bank's liabilities included paid-un capital of £195,2.0. m 39,050 shares of £7 10». each, on which there is an uncalled obligation of £2 10s. per share. On the basis of these figures Hie purchase price represents £271,421 ss. Other liabilities were:-BcserTcs, £80.000; deposits, fixed. £332.862; do., current, £399,072; bills in circulation, £13,287: interest accrued and rebate on bills current, £8151; and profit and loss. £15.160. the total being £1.047,718. Aswts at the sanvv (We comprised coin, bnllion, cash, and Australian noteg, £286,209; Commonwealth war loan. £29.000: bills receivable, and all other debts due to tho bank. £707,522; premises, etc.. £24,394; and duty stamps. £593. Liquid assets were £315,209, equal to ,8/7 in the pound of liabilities to the publicThe offer of the Commercial Bank of Australia, Limited, provides for the retention locally of the services of the directors and tho taking over of inn stall ..f tli« National Bank of Tasmania nt. Launceston. and at its fifteen branches in Tasmania. Previous banking amalgamations in Australia recently effected were between the Royal Bank of.Queensland and the Bank of North Queensland, end botween the Australian Bank of Commerce and the City of Sydney, Bank, the former resulting in the creation of the Bank of Queensland the latter leading to the disappearance of the City Bank. The offer of purchase was entirely vo ■ untary, and the offor mado is 35 por cent, above, the present market price of the shares of the National Bank of Tasmania,