AUSTRALIAN BANK MERGER

Dominion, Volume 11, Issue 287, 23 August 1918, Page 5

AUSTRALIAN BANK MERGER

NATIONAL AND COLONIAL AMALGAMATE. Melbourne, August 22. The directorates of the National Bank of Australasia ojid (ho Colonial Bank of Australasia have drafted a scheme for tho amalgamation of the two institutions. It will shortly ho submitted . f or tho approval of the shareholders. Tho proposed new institution will 1» called tho National Bank of Australasia, and will havo a paid-up iMirdtal of two millions, with a nominal capital of five millions, 'by tho readjustment and re-issuo of the shares of tho present holders on a pro rata basis. [Tho Colonial Bank was founded in 1856 and tho National Bank in 1858. Tho Colonial Bank for a long period confined itself to Victoria., with branches in Sydnoy and I/ondon; but tho National Bank did business and had branches in Victoria, South Australia, New South Wales, and Western Australia. Its agents in Now Zealand are Jhe National Bank of New Zealand; in Queensland, the Queensland National Bank. Commercial Banking Co., of Sydney, and the Australian Bank of Commerco; in Fiji, the Banki of New Zealand, Tho subscribed capitals of tho amalgamating institutions are as follow:— National. Colonial. £ £ Pd-eforence shares ... 305,780 301.0U Ordinary shares ... 1.007,5101 328,131 •£2,213,684 .£632,475 Grand total, two banks, The preference shares are fully paid up in both cases, and ordinary shares in tho National are £&, paid up to £5, amounting to .£1,192,4.40; ordinary shares in the Colonial are £i 55., paid up to £X 155., the amonnt totalling .£135,236 10s. The liabilities to the public in tho two institutions are as follow:— National. Colonial. £ £ Notes in circ 32,575 18,092 Bills in circ; 1.053,413 20S,tt9 Deposits, etc 14,220,750 (,763,879 Grand total liabilities, .£20,327,188. Both banks paid the same rate of dividend, viz., 7 per cent, on preference and ordinary shares. Tho reserve funds were -Colonial, .£300,000; National, ,£700,000.]