RECORD IN PROFITS

Sun (Auckland), Volume III, Issue 683, 7 June 1929, Page 10

RECORD IN PROFITS

BANK OF NEW ZEALAND INCREASE IN RESERVE (From Our Resident Reporter) V ELLINGTON, Thursday. With net profits totalling £912,954, the Bank of New Zealand has established a new record. The gross profits for the year were £1,916,600, which is £28,300 higher than the previous record in 1925-26, and the net profits of that year are just exceeded, the increase being £793 to £912,954. With the addition of £212,000 from reserves no longer required, the gross profits become £2,128,605, and the net profits £ 1,124,959, both amounts exceeding previous records. The directors recommend the payment of dividends at the same rates as last year, including the bonus on the Government's B preference shares and on the ordinary shares. The annual meeting will be held in Wellington on June 21. The directors state that the profits, after providing for evpenses of management, all bad and doubtful debts, and other contingencies, and after making provision for the annual donation to the provident fund, also for bonus to staff, are £934,153 6s Sd. From this has to be deducted interest on guaranteed stock, £21.199 Ss lid, leaving a balance of profit for the year of £912,953 17s 9d. To the latter has to be added provision previously made for certain doubtful advances, not now required, and recoveries, £212,004 ISs, and the balance brought forward from last year, £582,525 3s Bd, making a total of £1,707,483 19s sd. DISTRIBUTION OF PROFITS Interim dividends paid in December absorbed £363,199 17s 4d, leaving available for distribution £1,344,284 2s Id. This sum the directors propose should be disposed of as follows: Dividend on C long-term mortgage shares at 6 per cent, per annum, £7,031 ss; dividend on D long-term mortgage shares at 75 per cent, per annum, £17,578 2s 6d; dividend on preference B shares (making £162,500 for the year), £120,833 6s Sd; bonus on preference B shares, £18,750; dividend of Is 4d a share on ordinary shares (making £500,000 for the year, equal to 2s Sd. a share), £250,000; bonus of 1 per cent, on ordinary shares, £37.500; transfer to reserve fund (making £3,425,000), £275,000; leaving a balance of £617,591 7s lid to be carried forward. SLIGHT INCREASE IN CAPITAL The paid-up capital of the bank now stands at £6,858,113, an increase during the year of £56,915 due to payment of the final instalments of the first issue of preference shares for the mortgage department. After payment of dividends, the aggregate of capital, reserve fund and undivided profits will be £10.900,704, an increase of £396,951 since the previous balance sheet. The balance sheet total is £54,561,905, an increase of £4.682,357. Notes in circulation, £4,290,793, show an increase of £493,713. Bills payable and other liabilities have increased by £331,751 to £4.286,629. Deposits at £33,939,651 are higher by £3,600,618, while advances, including discounts, at £22,841,450 have increased by only £93,231. Coin, cash balances and deposits with bankers amount to £7,172,140, a decline of £355,286. A further substantial increase appears in the amount of funds in London. Last year the total was £1,953,570 more than in 1927; there is now a further increase of £2,454,086 to £12,459.218. The latter comprises money at call and short notice. Government securities and other securities £ 9,097,1 GB, an increase of £1,977,363, and bills receivable in London and in transit £3,362,051, an increase of £476,724. Holdings of public securities are all larger: New Zealand Government, £4.008,886, by £364,586; Australian Government, £3,560.161, by £1,491,776: and municipal and other local bodies’ securities, £1,227,215. by £247,629. The aggregate of the three classes of investments is £8,796,263, an increase of £2,103,992. Landed property, premises, etc., at £549,383, shows an increase of £15,787. LONG-TERM MORTGAGE The balance sheet of the long-term mortgage department shows that of the paid-up capital, £703,125, loans had absorbed £698,375 16s sd, leaving only £4,749 3s 7d transferred to the banking department. A year ago £616.209 15s of capital had been paid up; loans totalled £319,761 14s lid, the balance transferred to the bank being £296.448. The profit and loss account shows gross profits for the year, £1,916,600; the addition to this of reserves released, as mentioned in the directors’ report, made the total £2,128,605, as against £1,890,380 last year. Salaries and allowances at head office and 238 branches and agencies amounted to £478,853; directors’ remuneration, including London board and local tors in Australia, £9%20 16s 8d; s neral and audit expenses, £160,20u; a total of £982,447.