The Directors have now to submit to you a general Statement of the affairs of the Corporation, and Balance Sheet for the half-year ending 3ist December last.
The net. profits for that perind, including $7,042.19 brought forward from last account, after paying all charges and sleducting inter: est paid and due, amount. to $119,785.42, of which, after taking out Rebate on Bills not yet due, and Remuneration to Directors, there Femains a balance of $109,050.44. reentamend the payment of any Dividend to The Directors again regret that they cannot
the Shareholiers. The general working of the Bank during the half-year has been unsatisfactory, and, notwithstanding the profit derived from the Chinere Imperial Government Loan, the profits are comparatively small, The losses and amounts written off require $106,000 of the Profits, together with the $275,000 of the Reserve Fund mentioned in last Report, and a further sum of $400,000 from the same account. The Reserve Fund will thus stand at $100,000, and, there will be 'a balance of Profit of $3,859.44 to be carried to the credit of New Account.
The poor result of the half-year's working is attributable to the bad state of trade in the East; business generally has yielded but little profit and that in Exchange has proved no Exception, The demand for advances has been small and the interest obtainable on them consequently low, while the interest paid by the Bank ov deposits has been heavy. These deposits are now larger than they ever were, notwithstanding that, more than six months ago, the Directors resolved to receive none at her rate of interest than 5 per cent, per The mount now set aside is required as follows For London Accounts. $160,000 Sterling. Bills 80,000 Head Office Accounts...... 180,000 Sundry Accounts... 86,000
$506,000 The $275,000, referred to in the last Report, has been required, as anticipated by the Chairman at last Meeting, chiefly by the Indo-Chinese Sugar Company's account and transactions connected therewith. 'The Company's estate now stands in the Bank's books at half' the value the Bank's Special Agent has placed upon it. The Directors purpose to realize the property with all despatch, ant steps have been already taken to that end.
the amount placed against London losses is required on account of transactions entered into prior to the present half-year. Although these transactions were known to the Directors at the date of the previous Meeting, they had no reason, from the information then in to look upon them as bad. Subsequent advices, however, shewed that a considerable amow Meeting had hoped to recoup the Bank a portion of the amount then set aside for London losses from Mr. Vacher, the London Manager at that time, as they believed he was possessed of covsiderablo means, but he is unable to meet his own indebtedness (unwarrantably incurred) to the Bank, and although the Directors have obtained from him an assignment of his available pr perty, they have to provide for a loss on, bi account, "Mr. Vacher is no longer in the Bank's service.
The losses on Sterling Bills are chiefly due to purchases made previous to the half-year, and are now provided for.
mount placed against Head Office accounts" is required for writing off consider able amounts from the value, in the Bank's of the Sagar Refinery, the Pier Com-property and other items, and for deficiencies on current advances during the half-year, securities of all kinds having Geprecited greatly in val the sum placed against Sundry accounts" is required mostly to__meet losses on advances made at some of the Branches previous to the half-year.
Referring to their last Reportand to the expectations there expressed as to the extent of possible fature loses, the Directors, greatly regret that their anticipations should have turned out much too sanguine. They cannot, however, close this Report without pointing, out, that, although they have been compelled to lay before the Shareholders two successive unfavourable statements of accounts, the general business and position of the Bank continue sound.
The Directors, under authority of Article e Deed of Settlement, have now resolved to take immediate steps to appoint a Local Committee in London to supervise the transactions of that Branch.
Mr. David McLean has been appointed to wake a special tour of inspection of the Bank and will be here shortly, hut it will be at least two months before he can hand the Directors his Report.
The Balance of the Marine Tosurance Account now amounts to $33,981.06,—no losses have been sustained during the half-year.
Mr. Thomas Pyke resigned his seat at the Board, in conformity with th at the last General Meeting.
Rowett and 8. D. Sassoon also resigned seats at the Board, on leaving the Colony, and Mr. F. D. Sassoon has been appointed in room of the latter gentleman, Mr. Adolf Andre fixs been appointed Chairman of the Corporation for the year 1875, vice
Text read from the printed page and cleaned; old type leaves the occasional error.