BANK OF NEW ZEALAND.

Gisborne Times, Volume XXIX, Issue 3389, 2 December 1911, Page 2

BANK OF NEW ZEALAND.

HALF-YEA RL Y MEETIN G

WELLINGTON, Dec. 1. The half-yearly meeting of the Bank of New Zealand shareholders was held to-day. Mr. Martin Kennedy, actingchairman of directors, said: — Gentlemen, —This being the statutory half-yearly meeting of the bank, as you are aware, no statement of ac- , counts is presented. The principal business' is the election of a director to fill the vacancy; caused by the retirement of Mr. Martin Kennedy by effluxion of time, but who, being eligible, offers himself for re-elec-tion. He: has given the necessary notice, and, there being no other nomination, I now declare him duly elect - eel. You will be glad to learn that the half-year’s profits have been well «iistfained, anci compare favorably* with those for corresponding periods of recent vears. Having reason to anticipate that ‘the second half of the year will prove proportionately good, we have declared an interim dividend of 6 per cent, on all the shares of the bank, which will be payable at the head office Wellington, on Monday, 4th hist., and at branches on receipt of advice. The chairman, Mr Beauchamp, and mv colleague, Air Watson, obtained leave cf absence from the hoard and left for London—Air. Watson on 6th April, and Mr. Beauchamp on 23rd June- Mr Watson is expected back this month, ai d the chairman in February next. Both gentlemen have been associated with the London Board, and doubtless will have rendered good service to the bank during their absence from the Dominion. On the eve of Air. Beauchamp’s departure from the Dominion, the board appointed Mr. Me Kennedy, to be act-ing-chairman in the absence of Mr Beauchamp. It is with very deep regret that 1 have to announce the death in September Last of Mr. W. H. Quick, who had occupied a seat on the board for four and a half years. The board liras placed on record its appreciation of the good services rendered to the bank by Mr. Quick in the capacity of a director. Air Quick having been one of the four Government representatives, the vacancy on the board has been filled by the appointment by the Government of Air J. A!. Johnston, of Palmerston North, whom I have pleasure in introducing to you to-day. Air Johnston has had some 35 years’ experience of business matters in this Dominion. Of this, 1 years were spent in the service of the bank. During the year there has been a good demand for money, and this demand has been well responded to by the banking institutions in the Dominion. The following comparison of the advance figures for the Septemlier quarters of lOlland 1910 shows the increase for the twelve months:— Advances and Discounts.

1911. 1910. V £ Rank of New Zealand 5.259.63!) G,906,091 Union Bank of Australia. Ltd 3.540,832 3,222,958 Bank of New S. Wales 3,111,352 2,516,493 Bank of Australasia 3.250.751 2,794,888 National Bank of N.Z., Ltd 3,239,053 2.676,566 21,131.660 18,177,590 —an increase of £3,254,064. It will he observed from the foregoing figures that we have obtained a fair proportion of the inc-iease; and this, in view of the keen competition for advance business, may lie considered satisfactory. Some comment lias recently been ! made on the position shown by this j bank in the Government quarterly rei turns, in that the assets in the Domin- | ion, as shown, were less than the lia- ; bilities. To any person not familiar | with banking finance, the inquiry would | seem quite natural, and as every per- : son in the Dominion is concerned in | the affairs of the hank, it will perhaps j not lie out of place for me to explain j that, in view of the large amount of i our deposit liability it is essential to j a policy of prudent and safe hanking | that a proper proportion of our assets | he kept in a liquid form, and as this i cannot be accomplished in the Domin- ; ion in a remunerative manner, we find | it advantageous to hold such funds in ■ London, where they are revenue-bear- | ing and whence they can he transferred j expeditiously whenever they may be I required. I have much pleasure"in stating that, ■ by a. recent sale in Auckland, we have disposed of the largest of the remaining Assets Realisation Board properties, and that those left in our hands now represent only a little more than £IOOO in value. This will, I am sure, be satisfactory information for shareholders. I may mention that these 1 assets, when the Board was oonstij tuted in 1895, amounted to £2,680,000. j You will he interested to hear that, j owing to the considerable demand for j extended banking facilities, we have | since Ist April last opened, in various : parts of the Dominion, four new branj dies and six new agencies, and have I converted five agencies into daily ; branches. Regarding the trade and commerce of the Dominion, the following figures show the relation our imports hear to our exports over a period of five years : Excess of Excess of i Exports. .! m ports Exports Imports ; I <££,'££ i 1906- 19,891.846 16,071,887 3,819,959 ; 1907- .16,370,587 17,750,868 1908- 18,700,156 14,916,005 3,784,151 j 1909- 21,958,954 16,101,886 5,857,078 I 1910- 19,912,656 18,613,950 1,300,696 The above figures are for the period ending 30th September in each year. As regards the commercial outlook: Trade in the Dominion, which has been somewhat slow throughout the year, I j am glad to say shows considerable re- | vival. The exports for 1909-10, which i were easily a record for the Dominion, have not been maintained for 1910-11, | but the two years taken together show a total of £41,871,020—an excess over imports of £7,157,774, or equivalent to an excess for each of the two years of £3,578,887; or, if we take the last three years combined, the excess of exports over imports leaves an average balance of £3,647,308 for each year, which may he regarded as very satisfactory. I deem it desirable, however, to call attention to the increase in advances of three and a quarter millions for 1911 over 1910, and to the growth in the import figures for 1911 of £2,500,000 over the previous year. These movements, if continued, will naturally lead to stringent monetary conditions, and it would be well that merchants, traders, investors in land, and the community in general should keep that contingency in view. With regard to the industrial outlook, it is to be regretted that, in some parts of the Dominion, tlie lambing this season has not been as good as [ usual. Taking this Dominion as a

whole, however, the result is generally up to the average. The sheep returns, just published, give no increase, hut show a slight decline of 273,494. This result may be taken as the natural outcome of tlie subdivision of sheep stations, and the more valuable portions of such estates being used as small dairy farms; and it is gratifying to notice the great expansion of dairying in the Dominion and the high level maintained in prices of butter and cheese.

Agriculturists, too, have reasonable justification for anticipating a satisfactory season, with fair prices for the staple products of the Dominion. Before sitting down, allow me to thank you sincerely for again electing me unopposed as one of your two representatives on the hoard of the bank. 1 accept it as a very high compliment indeed, especially having already completed a period of 17 years in that capacity. During that period tlie progress of the bank lias been truly phenomenal. For the first year, ending 1895, the balance-sheet showed a net loss of £37,356. The next year gave a net profit of £132,193, wit progression each subsequent year, and the last five years have averaged upwards of £351,000; and the deposits, which were in 1895, £7,222,202, have gone on increasing, and at 31st March last stood at £17,886,746. Trulv it can he said the progress of the Dominion is also the progress of the hank.