EASTERN BANK, LIMITED
Tna following is a summary of the statement of the chairman, Sir James Leigh-Wood, K.B.E., C.B., C.M.G., which has been circulated with the report and accounts for the past year : It is my pleasant duty to report a reasonably satisfactory outcome in your affairs for the year 1940, as the net profit of £102,390 is but £2,000 lower than that of 1939.
The board decided in March to declare a second interim dividend in lieu of the customary final dividend, and were pleased to be in a position to maintain the total rate of 6 per cent. per annum. After having paid this second interim dividend of £40,000 and transferring £20,000 each to contingencies and property accounts, a carry-forward of £84,671 is shown. The current and deposit accounts at £8,820,000 show a further increase of £618,000, ' which is of no peculiar significance, as the experience is general among banks. This addition, taken in conjunc- tion with the decrease of £798,000 in advances and L18r,000 in acceptances, evidences contraction in the requirements of our custo- mers, following necessary control of the movement of commodities by the several Governments concerned. The liquid position is again strengthened by the increase of £1,122,444 in cash and bills receivable combined, of which £706,875 is in British and Indian Government Treasury bills. Concurrently there has been a reduction of L443,000 in securities.
Notwithstanding handicaps, India, as one of the greatest primary Producing countries in the world, as well as an important manufac- turing country, has been prosperous on the whole, and the outstanding evidence lies in her ability to repay in the fiscal year ended March 31st last no less than £71,000,000 of her sterling loans from surplus balances. A somewhat similar comment applies to Ceylon, the Straits Settlements and Irak in so far as production of raw products is concerned.
We have had no recent news of our affairs in Baghdad and up country, but we know that at the port of Basra the bank has remained Open.
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