BANK OF NEW ZEALAND

Wairarapa Times-Age, 10 June 1938, Page 3

BANK OF NEW ZEALAND

CHAIRMAN’S REVIEW OF PAST YEAR

CHANGES IN THE TREND OF ADVANCES. PROVISION FOR FARMING. (By Telegraph—Press Association.) WELLINGTON, This Day. In the absence, on account 'of ' illness, of the chairman of directors of the "Bank of New Zealand, Mr A. T. Donhelly, his address prepared for the annual meeting today was read by Mr William Watson, who presided. In the course of his survey of operations during the past financial year, Mr Dorirtelly said: —

“Deposits, '£34,731,532, show a decrease of £904,580 as compared with the figures of a year ago. The reduction is mainly in fixed deposits. Bills payable and other liabilities are more "by ’£497,464. Coin, Reserve Bank notes, and deposits with bankers stand at £6,103,579, a reduction of £1,825,892. Money at call and short notice, Government securities ’ and other securities in London, £5,554,518, are less by £1,567,902. The reductions "shown uhder these two headings reflect the general change in the banking and trade figures to which I refer later. New Zealand Government securities, £5,390,347 —an increase of £764,253, due to the purchase of short-dated stocks. Australian Government securities, £2,239,634, are less by £756,266, sales having been made from time to time to replenish otir ' cash funds l in Australia. Advances and bills discounted, £26,417,322, Show an increase of £2,753,374. and taxes amounted to £379,341, an increase of £56,052 over the figures of last year. SALARIES & ALLOWANCES. “Salaries and allowances have steadily increased annually and have risen from £508,988 as at March 31, 1931, to £563,986 as at March 31, 1938. This increase is partly due to a-growth in the size of the staff, partly to adjustments involved in legislation, and partly to the review of other salaries vihich these adjustments made necessary. The voluntary adoption by the bank of a new 12-year scale which h'as had the effect of bringing staff salaries more in line with recent Australian awards will further increase the amount. It may be mentioned here that, in addition to these normal commitments on account of salaries and allowances, contributions are also made to the Provident Fund and to the Bahk Officers’ and Dependents’ Benefit Fund. /; ■ “I have pleasure in acknowledging the loyal and efficient services of the staff in New Zealand and overseas. It Was again decided to pay a 7J per cent staff bonus this year. BANKING FIGURES. “A comparison of the average figures of the six trading'banks for the March quarter of 1938 with the figures for the corresponding. period of 1937 discloses a slight reduction in the total of free and fiifed' deposits, and a material increase in advances. The figures are:

“An analysis of the deposits shows that free deposits have increased by £493,644, while fixed deposits are less by £716,936. The proportion of advances to deposits for all trading banks is 81 per cent as compared with 71 per cent for the corresponding per-

iod 6f"*a ?year -’ago. , . ■ “The figures of the “Bank of New Zealand ’alone- for the 'March quarters of 1937 "and ■ 1938 ’ Were: — 1937. 1938. £ '£ Free " deposits 14,163,568 'i4;632;854 Fixed' deposits 15,1894,536 15,012,780 Advances 20,389,409 23,404,079 “The following tabulation shows that the' main 'increases in 'this Bahk’s advances "’during "the year were attributable to a large extent to fuller finance for farming -and-associated activities. March Quarter Analysis of Advances (in millions of £).

“The advances to these three groups represent slightly more than half bf the Bank’s total advances and show an increase of £2.3 millions over last year. This increase represents nearly four-fifths of the increase of £3 millions in the Bank’s total advances. This summary analysis reveals the extent to which the Bank participates in the finance of farming and associated activities, and illustrates the peculiar character of the evolution of the business of trading banks in New Zealand.

Deposits. Advances £ £ March quarter, 1937 66,286,864 46,940,786 March quarter, 1938 66,063,554 53,640,215 Decrease .... £223,292 Increase £6,699,429

1937, £ 1938. £ Farming 7.5 8.4 Industries allied to farming 1.9 2.9 Stock ' & station "agents .3 .7 — — Totals 9.7 12.0