A GOOD BANKING REPORT.
Even after all alloWance is made for the absorption which took place towards the end of last year of the -Royal Bank of Australia, the annual Report of the English, Scottish and AUstralian Bank is a very "satisfactory one.. There was an increase in the profit from £1,366,000 to £1,426,000 and, inasmuch as the bank's financial year ends on-June 80th, only about three months of any benefits resulting from the fusion are included. It must also be remembered that there has been an increase in the capital of the bank, in spite of which fact not only is the 121 per cent. tax-free dividend Maintained, but a further £100,000 is added to the Reserve, and very nearly as much is used for the purchase of Deferred Inscribed Deposit Stock, which amount is applied in reduction of Premises Account. : Finally, it may be noted- that the carry forward is £47,200 greater than a year ago. The expenses rose for the year, but a much larger amount had been brought in and the position in that sense is more than maintained by the fact that the carry forward is now £278,000 as compared with only £183,000 two years ago. . The balance-sheet, too, is a good one and will be further strengthened as regards the Reserve -by the fact that since the bank's • year ended there has been. a .new . issue . of shares at a .substantial premium, so that- by adding £360,000 to the Reserve that Fund now stands at £2,010,000. The -authorized capital of £5,000,000 having been all issued, the directors are seeking powers to.increase the capital. o £8,000,000. Certainly it-is a ease where for many years past the stewardship of the batik has been-so excellent that ample eVidefice has been given of the ability of the directors to handle increased resources,
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