BANKING SEASON OPENS
First among the " Big Six " British banks to announce their profits and dividends, Barclays and Martins show a rather surprising divergence of experience. Barclays' profits, at £1,926,458, have fallen by £207,367, or rather more than to per cent. Preliminary figures of Martins show a further rise of £19,363 to £872,929, but the 1937 figure was struck after a charge of unspecified amount for centenary bonus to staff. As an indication of changes in the banks' real earnings from one year to another the published profits are not, of course, a very accurate guide. Published profits are shown after all sorts of -internal provisions which vary considerably from year to year for purely " policy " reasons. 'My own feeling is that the banks' actual, earnings last year did not differ materially from those of 1937, but I also suspect that, in view of the uncertain outlook, especially for gilt- edged stocks, most bank directorates will tend towards greater conservatism in arriving at their 1938 published profit than a year ago.
So far as dividends are concerned, the season has opened well. Barclays is maintaining its 14 per cent. rate which remained unchanged throughout the 193o-32 depression, and shows the dividend to be comfortably earned. Martins springs a pleasant surprise in raising its rate from 14 to 14 per cent., which has been reflected in a rise of 4s. 6d. in the Lao shares (L2 los. paid) to L81. I shall be surprised if there is a change in dividends by any other member of the " Big Six."
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