17 OCTOBER 1931, Page 34


It was almost a foregone conclusion that in the case of all banks operating in South America, where the exchange, have so greatly depreciated in terms of sterling, that the profits must have been greatly affected. Consequently the statement of profits recently made by the Anglo-South American Bank was regarded by the market in many respect, as reassuring. In fact, the total of £461,383 was almost identical with the figure of the previous year. Had the circumstances been normal, therefore, the directors would undoubtedly have maintained the 10 per cent. dividend, but the directors have very wisely made the final dividend at the rate of 4 per cent. per annum following upon an interim dividend at the rate of 8 •per cent. per annum. This make, the total distribution for the year at the rate of 6 per cent. on both " A " and " B " shares. The margin of profit remaining is, of course, very substantial, but the directors are transferring £100,000 to the Investment Reserve, £100,000 to Contingent; Account and £26,361 to Legal Reserves in Chile, Colombia and Ecuador, while £30,000 is added to the Staff Pension Fund, leaving £153,070 to be carried forward as against £207,150 a year ago.