MARTINS BANK
TAX INCIDENCE ON EARNINGS
BUSINESS AND TURNOVER ACTIVE MR. FREDERIC ALAN BATES, :halm-Ian, has issued a statement to shareholders of Martins Bank, Limited, in place ot the address he would normally give at the it 1th annual meeting of the bank on January 27th, in which he says:
Last month certain new appointments were made among the bank's executive officers. Mr. J. M. Furniss, general manager, became chief general manager, Mr. James McKendrick deputy chief general manager, arid Mr. r. A. Moore and Mr. Frank Voyce joint general managers Mr. Voyce will continue to be stationed in Lon- don. It gives me pleasure to acknowledge the high executive ability of these officers in their conduct of the bank's affa, s.
Profits are now shown after deduction of tax on dividends. The change does not -affect the final result, but shows more clearly the incidence of taxation on earnings. The net profit for x941 is £587,248 against a net profit for 1940 (adjusted to the basis now adopted) of £641,427, but the decrease is more than accounted for by taxat.on The amount brought forward from last yea, is £347,771, which with the profit of £587,248 makes £935,019 available for distribution. An interim dividend of 71 per cent. was paid in July. It is proposed to pay a final dividend for 1941 at the same rate, making 15 per cent. for the year The two dividends will take £312,003 net after deduct- ing tax. There has been transferred to staff pension fund £loo,000, and with uncertain times in mind a further sum of £150,000 has been placed to reserve for future contingencies, leaving £373,016 to be carried forward.
Deposits have risen during the year by £34,290,000 to jj157,600,000 due to heavy Governmen: expenditure on war production Invest- ments (a high oroportion in short term securities) have increased by £13Abo,000 and now stand at £58,940,000. Treasury deposit
receipts of L28,000,000 are held, as against £9,000100o last year. • Advances have decreased by some £5,600,000 due to contraction in business not considered essential to the prosecution of the war. In all essential industries the bank is very rea,:y to help, and adopts a generous attitude to applications for advances to customers en- gaged upon war work. Business and turnover continue to be very active.
Cash in hand and at the Bank of England stands at £17,621,000; quick assets, comprising cash, money at call, balances with other banks, Treasury and other bills and Treasury deposit receipts being £66,351,000, that is 41.96 per cent. of deposits.
I have confined my observations to the domestic affairs of the bank, the sound position of which fully justifies optimism in the outlook for the new year. While serious thought is needed in considering the future of the country's trade after the war, it should be clear to all that the nation's life in its various aspects, industrial, commercial and social, must be solely directed for the present to the one ties of a concentrated effort to win the war in the shortest time possible. The year that has just closed brought many anxieties to the nation, but also much for which to be thankful, and there are sure grounds for firm confidence in victory.
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