BANK OF NEW ZEALAND

Hawke's Bay Herald-Tribune, Issue 124, 11 June 1937, Page 5

BANK OF NEW ZEALAND

-rCh m CorrespqudcutJ

— ^ .. - - Annual Meetipg Oi Sharehol 10 PER CENT. DIVID1ND

(By Telegraph-

WELLINGTON, This Day. The annual meeting of the sha^ehblders Qf the Hank of New Zealand was held to-day, Mr A, T. Donnelly prqsidiur, The annual rep.P?t. and balan.eeshaet were adopted. The folloyring itema from the balance-sheet and PJbflt-and-loss. aceount were noted by the chairnian. Notes in eixculation, £628— a re.ductiqn pf £323,824. D.eposits, £35,636,112, shews . Rftle vajiation. Coin, Reaerye Bauk Nates^ aud Q.eposits with bankers, £7,292,4?1, are mQre by £1,016,330 thau at M.aibb 31, 1936, Money at call aud ahoxt UQtiqe, G«?vexnmeut eeourities, aud Qthqf secnjitles in Lqndoa ataud at, fftdu®* tiom of £1, 050,000., BUla reoeivable |u London and in trausit, £1,338,924, Wbiqh it Ipwtr'by £935,947 thau a year agq, The fluciuationa iu thaae. three itemt are. uaainly duq to the diversiou qf the dairy produce exchange to the Reserve Bauk. New Zealand Governiuent seeuritles, £ 1, €26,094-— an increase of £1,229,037. The purchase of Treasury Eilis and shQrtdated stpck acconnts for the higher flgures. Auktralian (Government securities, £2,995,900, are lower by £1,591,913 saies having been made from time to time to replenish our cash funds in Australia. Advances and bills diseounted etc., £23,663,948, show an increase of £1,484,575. Salaries and allowances, £553,072, are higher by £26,891, due prineipally to adjustments made in the salaire's of some of the staft'. The full effeot of tfiese increases will -not, hqwever, appear until thq next statement oi accounts. Rates and taxes amounted to £323,289, which is more by £32,097 than last year. Both land and income taxes have been inereased. Bauks are assessed for ineome-tax not on their actual earnings but on an assumed income. arrived at. by adding their average assets and liabilities in New Zealand together and taking'30/- per cent thereof. A committee to consider and report on taxation generally was recently set up by Cabinet, and the banks' case for relief has been submittod. The deposit and advance figures of the six txading banks for the March quarter of 1937 show some material changes as compared with the corresponding period of a year ago. The total average deposits have inereased " by over £600,000, but & marked mQvement has taken place, in the two classes of deposits, free depogits' having inereased 6y £5,291,080, while fixed def)ositB are lower by £4,603,926 Advances have inereased by £1,834,874. The figures of the Bank of New Zealand for the March quarters of 1936 and 1937 wero : — .

Advances in the March quarter of 1937 represent 68 per cent of the bank's total deposits, as compared with 63 per cent for the corresponding quarter last year. The pereentage of fixed deposits to total deposits ig 53 per cent., as against 60 per cent in 1986, The free deposits, fixed deposits, and advances of this bank represent 43 per cent., 47 per cent., and 43 per cent. respectively of tha total figures of the trading banks in New Zealand for these items. The trading banks' deposits with the Reserve Bank at March 29 last, amounf«d .to £8,880,494, approximately £5, 300,000 in excess of the statutory balance required to be maintained. An interim dividend of 5 per cent on ordinary shares was paid in Decernber last. A fui'ther 5 per cent is now being paid, making 10 per cent for the year. Mr. W. D. Bell proposed a vote of thanks to the directorate, management and staff. He said it was gratifying to learn that the board had seen fit to make a special mark of appreciation, in the shape of a bonus to the staff. Mr. Bell made reference to a responsible member of the 'Government having seen fit to hold bankers up to ridirule. He thought that was deeply deplorable, though a certain amount of chaff was good for bankers. He could think of nothing more satisfactory than taking lialf a crown off a banker at golf after his refusal earlier in the week of an increase in overdraft. Mr. W. E. Fussell seconded the motion, which was carried with acclamation. The chairman returned thanks on behalf of the board and the genera^ manager on behalf of the staff.

> 1936 1937 £ £ Free .deposits... 12,047,328 14,163,568 Fixed Deposits 18,323,9 55 15,894,536 Advances 19,313,871 20,389,409