Financial Notes
BANKING DIVIDENDS.
The Banking results for the past year are proving not
only equal to but slightly in excess of market expectations. With the exception of Lloyds and the Westminster, which showed a moderate decline, the leading bank institutions have now announced moderate increases in their profits, though in the case of the Midland the increase was more than moderate, the net profit for the year of £2,267,000 com- paring with £2,019,000 in the previous year. In all cases, too, the dividends of a year ago have been maintained. NVithout, however, in the least degree under-rating the excellence of the results which have been achieved,
I think that holders of bank shares should regard presen t conditions as somewhat abnormal in character. I can- not but think that ordinary banking profits, as ex- pressed, for example, in the difference between the interest paid to depositors and the interest obtained by the banks for the use of their funds, are still greatly below the normal. On the other hand, bankers' balance sheets and in some instances, perhaps, even bankers' profits have been favoutably affected by the rise in gilt-edged securities, while such ample provision has been made in_ past years for bad and doubtful debts that it is quite possible that the liquidation of many of these may have aided the profits of the past year. However that may be, I expect the satisfactory dividend statements to be followed shortly by good reports and liquid balance sheets, while in view of this maintenance of dividends and the prospect of better trade, it is not surprising that bank shares should be displaying a rising tendency, the advance, no doubt, being also assisted by the scarcity of all sound -investment securities.
(Continued on page 66.)
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