THE BANKING YEAR

Dominion, Volume 28, Issue 103, 25 January 1935, Page 14

THE BANKING YEAR

Operations During 1934 DECLINE IN NET PROFITS The aggregate net profits of the 11 trading banks operating in Australia and New Zealand amounted to £2,653,846 during 1934, a decrease of £31,767 on the previous year’s total. Decreases in profit amounting to £57.662 Were shown by six banks, and increases amounting to £25,895 by five. The results, which are summarised in the Australasian Insurance anti Banking Record, cover balance-sheets published between October 16. 1933, and September 30, 1934. Aggregate net profits and dividends and the proportion for the past six years compare as follow:— ' Ratio

As compared with the 1928 returns, the net profits for 1934 show a decline of £3,750.572, and the dividends a decrease of £2,725.468. The ratio of net profits to shareholders’ funds has declined fairly steadily since 1()20 M when it was 7.69 per cent. The movement was as follows: —1930. 6.99 per cent.; 1931 5.16; 1932, 3.05; 1933, 3.23; 1934. 3.19. The average rate of dividends on paid capital during the past three years was as follows: —1932. 6.39 per cent.; 1933. 5.59; 1934, 5.47. The rate on total shareholders’ funds (paid capital plus reserve funds and undivided profits) compares as follows: —1932. 3.49 per cent.; 1933, 3.06; 1934. 3.00. Commenting on the figures, the journal states that causes have continued at work to keep banking profits at a low level in relation to the shareholders’ funds engaged in the business. One of the principal causes is the decline in lending rates, while the lower rates of interest on fixed deposits became effective coinpara--tively slowly after the terms for deposits made some time ago at higher rates ran out. Trading activity has shown some improvement, evidenced for one thing by the overseas trade returns. Taxation has been somewhat less onerous, but the effect of this has usually been counterbalanced by other factors. LONDON WOOL SALES Steady Rates Maintained By Telegraph.—Press Assn. —Copyright. London, January 23. At the wool sales to-day 8203 bales were offered, .including 3012 bales from New Zealand. Australia and New Zealand wool sold totalled 7194 bales. There was satisfactory Home and Continental competition at steady rates. New Zealand greasy crossbred, Lavenham, 10d., 7 3-Sd. SYDNEY SALES FIRM Increased German Activity By Telegraph.—Press Assn.—Copyright. (Received January 24, 10.45 p.m.) Sydney, January 24. At the Sydney wool sales to-day 11,168 bales were offered, of which 9878 were sold at auction, and 523 privately. Values were fully maintained, but faulty wools are still irregular. Competition was strong and general, with increased activity on German account. Greasy merino made 181 d. Fine Wools for Japan Mi Until this year Japan showed little interest in extra superfine merino wools, but at the Launceston sales on January 9 some of the finest specialty lots were bought for Japan. The new competition wits a welcome feature of the sales. It shows,' however, that the lots were bought for experimental purposes only, and it is not expected that Japanese competition for fine wools will be keen at the approaching sales oh the mainland. DAIRY PRODUCE Butter Market Firm Joseph Nathan and Company, Ltd., have received from their principals, Trengrouse and Nathan, Ltd.. London, the following cabled adv L-e. dated January 23:— New Zealand butter, sentiment improved American buying, 83/-, 84/- firm. New Zealand cheese, white 45/6, coloured 45/-. Better demand. The New Zealand Loan andt Mercantile Agency Company, Limited, have received the following advice f rom their London house, dated January 23:— Dairy produce (last week's quotations in parentheses). Butter. New Zealand choicest salted, 82/- to 83/- per cwt. (79/- to 80/-). Market steady. Cheese, white and coloured, 45/- to 4(1/- per cwt. (46/-). Market slow. BASE METALS MARKET Copper Again Easier Bv Telegraph— Press Assn.—Copyright (Received January 24,. 10.5 p.m.) London. January 23. lite olliet.-ii London iniiddlei quotations for Wednesday, ns reported by the Australian Mines and Metals Association, compare as under with those previously cabled:—

J. C. WILLIAMSON, LTD. Preference Dividend A preference dividend at. the rate -4 6 per cent, per annum has been declared by the directors of J. C. William son, Limited, for the six months ended December 31 and is now payable. This is the first dividend under the recently approved capital reorganisation scheme, whereby among other things the rate of dividend on preference shares was reduced from 8 per cent, to a fixed cumulative rate of 6 per cent., with the right to participation up to 8 per cent, when the ordinary shareholders' receive more than 6 per cent and the debit at profit and loss at June 30. 1934. was extinguished by a transfer from reserves As the issue of bonus preference -hares, authorised at the same time as (lie preference capital reorganisation, was made on December 2S, tlie dividend on these shares dates from the beginning of the year only, and there will be no dividend on them for the last half of 1934.

Net profits. Dividends. p.c. 1929 .. £6,359,181 £5,173,561! 81.32 1930 5,908,074 5.038,312 S5.28 1931 .4,404,573 4,164.818 94.55 1932 .. 2.572.771 2.937,75S — 1933 2,685.613 2,541,425 94.63 1934 2,653.846 2.487.988 93.75

Jan. 22. Per ton Jan. 23. Per ton. Copper - £ s. d £ s. <1 Standard 28 4 4! 28 1 104 Standard, forward 28 I) 4 A 28 (1 101 Electrolytic .... 31 5 0 31 0 0 to 31 15 0 31 10 0 \Vire bars :n 15 (i. 31 10 0 LeadSpot 10 8 !» 10 S I) Forward 10 11 3 10 11 3 Spelter— Spot 11 IS !» 11 IS 0 Forward ....... 'fin12 3 9 12 2 0 Spot •>32 s <| 232 8 9 Forward 228 IS It 228 18 9 Silver— Standard, per oz. . 215-Sd. 24 5-8d. Fine 2G 20 U-IGd.