COMPANY MEETING

HAMBROS BANK

THE CENTENARY YEAR

THE 27th annual ordinary general meeting of Hambros Bank, Ltd., was held on May 25th, at the offices of the bank, 41, Bishopsgate, E.C., Mr. R. Olaf Hambro (chairman and managing director) presiding.

The chairman said: Gentlemen, as the directors' report and statement of accounts have already been circulated, I will assume that, following our custom, we may take them as read.

In addressing you this year I am sure you will agree with me that any remarks of mine concerning the general situation would be most unwise. Firstly, however, I should like to thank all those friends in this country and all over the world who sent us their kind messages and gifts on our centenary year and to assure them of our sincere appreciation of their kindness. It is quite clear to you that the expansion of our activities depends largely on peaceful international conditions, and in times like this we have to confine ourselves to doing only the business which it is our business to do, in other words, to meeting the financial requirements of our old established customers, and a glance at our acceptance account will show that this is being done, the percentage. of this account being 72 per cent. on Scandinavian and British account.

With these few preliminary remarks I will deal with the accounts before you.

POSITION EXCEPTIONALLY LIQUID The balance-sheet, as you will see, shows an exceptionally liquid position, which has been brought about by our decision during the late summer of 1938 to increase our cash position by the reduc- tion of the gilt-edged investments and to the corresponding increase in our holding of Treasury Bills. This was decided on owing to the prevailing uncertainty and as a precautionary measure, and this is still our policy today.

This, coupled with the rates at which it has been possible to acquire bills during the year, was bound to be reflected in the profit for the year, and a simple calculation of the reduction of the holding of gilt edged, with the consequent reduction in the rate of interest earned on that amount, will account for the reduction in the profit for the year.

VALUATION The only other remark I need make regarding the profit and loss account is that, in view of the prevailing crisis and the state of the Stock Exchange at the time, when quotations for various stocks certainly did not represent, in either direction, whether for buying or selling, the marketability of these stocks, we decided not to disturb the profit and loss account by writing these down out of the profits earned, but to earmark against what we believe to be a purely temporary valuation, sufficient to meet them from the contingency fund. This, as we hope, temporary transfer, is meanwhile more than replaced by the transfer made to this fund from the profit and loss account.

I do not think that there is any other item to which I should draw you attention, apart from the two points with which I have dealt as to gilt edged and other investments.

The earning power of the business has been satisfactorily main- tained in a difficult year, and at the same time a strong liquid position is disclosed, which I know you will agree is no mean achievement. This has been brought about as usual by the loyal and energetic support of the management and every member of the staff, and I am sure you will wish to join with me in thanking them.

The Chairman: I now formally move "That the report of the directors and audited statement of accounts to March 31, 1939, already printed and circulated amongst the shareholders, and as presented to this meeting, be received, approved and adopted.

Sir Joseph C. Priestley, K.C., seconded the resolution and it was carried unanimously.

Tun DIVIDENDS The Chairman:

The next resolution I propose is: That a final dividend of TO per cent., less income-tax for the year ended March 31, 1939, be declared on the amounts paid up upon the LK) shares at the bank (making with the interim dividend of 8 per cent. paid in October last a total distribution for the year of 18 per cent., less income- tax), and that such final dividend of to per cent. be made payable, less income-tax, on and after May 27th, 1939, to the holders of the Do shares on the register on May 15th, 1939, and that a final dividend of 3 per cent., less income-tax, for the year ended March 31st, 1939, be declared upon the Lt " A " shares of the bank (making, with the interim dividend of 3 per cent. paid in October last, a total distribution for the year of 6 per cent., less income-tax), and that such final dividend of 3 per cent. be made payable, less income-tax, on and after May 27, 1939, to the holders of the Li " A " shares on the register on May 15, 1939.

The reports and accounts were carried unanimously.