BANKING PROFITS

Most of the important banks in England have now announced their profits for 1938. With the exceptions of Martins discussed by " Custos " last week, which shows a small increase, they all show slightly lower profits. Martins Bank raised its divi- dend from 14 per cent. to 14/ per cent. and the District brought its interim payment into line, thus distributing a total of 181 per cent. against 171 per cent., but the others are all maintaining their rates of dividend. The Westminster Bank is not, however, repeating last year's 2 per cent. bonus. Figures for Barclays and Martins were given last week. This table shows the results of the others :

Profit Decline Dividend for year, per cent.

Midland .. £2,445,671 £62,338 16 Westminster .. 1,557,162

193,427

18 Lloyds .. 1,705,300 127,201

12

National Provincial

1,771,785 103,175 15

508,808 11,447

18

District. •

Williams Deacon's.

301,418 9,508

121

When it is remembered that the banks this year have had to provide National Defence Contribution in respect of a full year, and that they have also had to provide for income tax at the higher rate, it is apparent that there is very little shrinkage in the indicated gross earnings. Since the banks all make ample provision for contingencies, such as doubtful debts, and have probably thought it wise to make more generous provision to meet the uncertainties now prevailing, there is no reason to suppose that there has been any marked variation in profit-earning experience during 1938.