WESTMINSTER BANK RESULTS
First among the Big 'Five to announce its results for 1939, the Westminster Bank fulfils general expectations. Profits are moderately lower but dividend rates are being main- tained. A fall in the net profit from £1,557,162 to £1,475,745 must be judged moderate in the light of the conditions in which banks were forced to operate last year. Moreover, this net figure is struck after taxation and after appropriations to the credit of contingency accounts, in which accounts themselves full provision for bad and doubt- ful debts has been made. I estimate that the heavier taxa- tion charge alone is sufficient to account for the fall in profit, while there can be little doubt that the board has been cautious in announcing its published profit total.
The final dividend of 9 per cent. on the £4 shares brings the total up to 18 per cent., as in 1938, while the LI shares again receive their maximum rate of I21 per cent. As a year ago, £ 100,00o goes to bank premises account and £300,000 to officers' pension fund, which leaves a balance of £534,006 to go forward, against £526,584 brought in. These are highly satisfactory results. All the banks have had to meet increased expenditure resulting from such fac- tors as A.R.P. and dislocation of staff, while there is the further burden of higher taxation. Advances, it appears, have been moderately well maintained, and the banks had the benefit of the higher money rates which accompinied the 4 per cent. Bank Rate. Over the greater part of the year, however, money market rates were low, and a moderate fall took place in the prices of gilt-edged stocks, of which the banks are large holders.
* * * *
Previous page