South African Bank

Hokitika Guardian, 3 July 1922, Page 4

South African Bank

SI jj.STANVIAL LOSSKS IX NKW

YOBK. .IOJIAXXKSBI'HUIj/May 17. It is officially .stilted that the Nation:)! Bank of South Africa lias decided not to pay any dividend for the pa.it half-year and also to transfer £3C0,:;::0 iiom the reserve fund, reducing the "reserve to £1,fit!!),(5119. This policy has been decided upon in order to eliminate all tisks regarding the outcome of certain transactions in recent years and to place the bank in the strongest possible position. All bad and dobutful debts have been fully provided for. and the hank’s investments have been taken at to below the present market value. After hiking into account the bnlance of £34.000 brought forward front from the reserve, the balance at the credit of the protit and loss account on March .‘fish 102*2.was £130.000. The balance to be carried forward will lie £25.000. The directors state that specific losses of substantial amount have been incurred, notably in New York. Certain of these losses came t" light since the declaration of the iiitciim dividend ns at September 30th last. “The circumstances under which the bank losses were possible have formed the .subject of close investigation by the directors, who are satisfied that the dispositions which they Ic.'ve made in this regard will avoid the risk of the recurrence of such losses and will preserve unimpaired the very valuable business which the bank possesses.’’.,