B—ls

Profit and Loss Account and Dividend The profits, after providing for expenses of management, and for all bad and doubtful debts, and other contingencies, and after making £ s. d. provision for the annual donation to the Provident Fund, are .. 429,795 19 9 To which has to be added : Balance brought forward from last year .. 399,208 3 2 829,004 2 11 From which has been paid : £ s. d. Dividend on preference A shares .. .. 46,250 0 0 Interim dividend on C long-term mortgage shares 6,503 18 1 Interim dividend on D long-term mortgage shares 16,259 15 3 Interim dividend on preference B shares .. 18,750 0 0 Interim dividend on ordinary shares .. .. 112,500 0 0 200,263 13 4 Leaving available for distribution .. .. .. £628,740 9 7 This the Directors propose should be disposed of as follows Dividend on C long-term mortgage £ s. d. £ s. d. £ s. d. shares at 6 per cent, per annum .. .. 7,031 5 0 *Reduced by Id. for every 13|d. or part thereof 527 6 11 6,503 18 1 Dividend on D long-term mortgage shares at per cent, per annum .. .. 17,578 2 6 *Reduced by Id. for every 13|d. or part thereof .. 1,318 7 3 16,259 15 3 Dividend on preference B shares (making £43,750 for the year) .. 25,000 0 0 Dividend at rate of 4 per cent, on ordinary shares (making £262,500 for the year, equal to 7 per cent.) .. .. 150,000 0 0 Leaving balance to be carried forward .. 430,976 16 3 £628,740 9 7 Such dividends to be paid in New Zealand currency. The gross profit for the year, less provision for contingencies, &c., amounted to .. £2,236,477, an increase of £135,847 Expenses amounted to .. .. .. £1,806,681, an increase of £141,301 Leaving net profit as above .. .. £429,796, a decrease of £5,454 The gross profit shows a satisfactory increase, which is accounted for by a higher level of advances, increased earnings from exchange transactions, the continuing increase in the number of customers' accounts, and the increased volume and turnover of the Bank's business generally. Investment income shows a reduction, due to repayment on maturity of Government and local-body loans.

* Reduction on account of New Zealand social security charge in pursuance of section 9, Finance Act (No. 2), 1941.

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