BANK OF NEW ZEALAND.

Hawera Star, Volume XLVIII, 20 June 1924, Page 3

BANK OF NEW ZEALAND.

1 ANNUAL MELTING OF PRO- 1 PRIETORS. 1 i The .annual meeting of proprietors < was held at Wellington this morning. 1 Mr. William Watson, lacting-chairman ; of directors, who presided, said, inter - alia: 1 At our last annual meeting you were 1 informed of the board’s decision to • issue at par £1,125,000 of new capital. • One-third of the amount was, in terms I of the “Bank of New Zealand Act, < 1920,’’ offered to His Majesty the King in the form of preference “IV’ shares, i: and was in due course accepted. Our capital, reserve fund, and undivided profits, after dealing with the ] year’s profits as recommended in the 1 directors’ report, will stand as follows: Preference capital held by 1 the Government of N.Z. 1,500,000 Ordinary share capital 3,000,(300 5 Reserve fund 2,325,000 Undivided profits 506.513 £7,331,513 La addition, there is the -1 per cent, stock guaranteed by the Government of New Zealand, amounting to £529,988, and due in 1934, which ranks for repayment subsequent to the liabilities of the bank tO' depositors and 'other creditors. These funds, aggregating’ j £7,861.501, are eqVial to over 20 peri cent, of the bank’s liabilities to the | public. But these figures do not alone indicate, the full strength of the j bank’s position, lor, like all banking |i institutions of first-class standing, we have, for many years been steadily accumulating interna! reserves to provide, for the effects of any exceptional setback which might overtake the Dominion. As this country is dependent for its welfare on the conditions of overseas markets—the course of which , we are powerless, to shape- —these, large j internal reserves against unforeseen contingencies are essential to the maintenance of the credit of the bank and the country. Our deposits at the balance date amounted to £30,561,71!). When, compared with the figures of the previous year, these show an increase of £497,793. The reduction for the. year of £379,388 in bills payable and other liabilities does not call for special comment. You will observe that for the full year we propose to. distribute in dividends £487,307 Is 3d. On the ordinary .shares this works out at the rate of two shillings and eight-pence, per share on the capital as at Ist April, 1923, one shilling atrd fourpence persharel on the new capital paid up as at Ist October last; and twopence per share on the 2205 shares paid up as ! at Bth March. I The Advances to our customers 1 amount to- £18,787,100 —an increase upon the figures of last year of just about £1,000,000. In the speech delivered by the chairman at the halfyearly meeting in December last, he mentioned that, in view of the recent increase of the bank’s capital, applications for advances were being encouraged, and the effect of tiffs is seen in the figures just quoted. Of course, advances are constantly being repaid or reduced and new or additional advances being made. Ample provision has been made for all bad and doubtful accounts. i In succession to Mr. Gibbs, the Gov-1 eminent has appointed Mr. A. R. W. P. Green to the post of chief auditor. Mr. Green’s connection with the hank has extended over a period of nearly j fifty years, and he has tilled during i that time many responsible positions, including Liose or inspector and suhse. quentlv of manager at Auckland. We have marked our appreciation of the work of the staff during the past year by granting bonuses to all the members, with the exception of the junior unmarried men, who receive annual increases of pay according to a fixed scale. In a great many cases substantial increases of salary have been granted, and we can safely say I that the pay of our staff, including (lie I bonus, is on a liberal scale. In salaries, j bonus, and the annual contribution to j our officers’ pension fiuul we paid last I year £455,844. which is £30.864 create)' I than the figure two years ago, although j the business of the hank has not increased in anything like the same proportion. It will lie seen from Ihrse figures that the staff is, shnvin"- in the prosperity of the bank, arid rightlv so. BUSINESS OUTSTDF, NEW ZEALAND In London and Australia our branches continue to progress and to perform the functions and maintain the connections for whit'h they are necessary. Fiji has lately undergone a period of depression owing to the low prices of copra and rubber, and the labour conditions. while the trade in bananas — formerly one 1 of importance—has been

reduced to small figures since the imposition of a- duty in Australia. Our latest advices from the colony are, however, of a more cheerful character than for some time past, and I am pleased to say that, notwithstanding the troubles our customers have experienced, our business there continues to be satisfactory and reasonably profitable. In Western Samoa we opened at Apia in 1915, shortly after the occupation by the New Zealand troops. The trade of the country is not large, consisting mainly of the export of copra and, to a lesser extent, cocoa. Owing to the low price of copra, the value of the exports fell from £365,000 in 1922 to slightly less than £30!).000 last vear. hut it is honed that the .-tens now being taken by the present able Administration, combined with better prices, may beneficially affect both production and values. Our branch lias justified its establishment and has been of assistance to the business community and a. convenience to the Government.