EARNING POWER.
In the matter of profit earning power, it may be said that the steadiness of dividends is as noteworthy as in the case of the English banks, while there have been one or two instances latterly of a somewhat marked increase. Notably the Royal Bank of Scotland, which in 1922 was only paying 13 per cent. and in 1927, 16 per cent., paid for 1928 a dividend' of 17 per cent., and the fact that the recent interim dividend was announced at the rate of 17 per cent. per annum, as against 16 per cent.- per annum a year ago is suggestive of a continuance of the upward movement. The Bank of Scotland, too, it is satisfactory to note, is getting back its dividend to the level of some years ago, and after paying 16 per cent. for a number of years, the distribution for the • first half of 1928 was at the rate of 17 per cent. per annum, while for the second half of the year ending February 28th last the distribution was at the rate of 18 per cent. per annum. With consistent regularity the Commercial Bank of Scotland has maintained its dividend for a number of years at the rate of 16 per cent. on the " A " shares and 10 per cent. on the " B " shares, and equally the Union Bank of Scotland for a number of years has maintained its distribution at the rate of 18 per cent., a feature of the last report being the expansion in Deposits, while there was also a marked increase in the Loans and Advances.
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