1. Annual Accounts.
I have pleasure in submitting Income and Expenditure Account and Balance Sheet, together with statements
showing Depositors' balances, open accounts and transactions, for year ended 31st March 1946.
The Income and Expenditure Account
shows the normal working expenses to be £124,926 compared with £114,536 for the previous year. Income Tax figure has been increased
by £16,620, but £15,000 of this has been set aside as an Income Tax Reserve to equalise the annual charge when necessary. Provision
has also been made in the sum of £15,000 to meet the cost of Repairs and Maintenance of Head Office and Branches, which have been
deferred during the War years. Excess of income over expenditure is to £14,031 compared with £6,001 for 1945.
The Balance Sheet
shows the amount standing to credit of depositors to be £74,281,359, an increase of £6,538,387 on the year. The amount on deposit
with the Corporation has increased by £1,038,432. Direct investments, in accordance with arrangements with H.M. Treasury, total £37,754,000
compared with £31,572,000 in 1945. The amount outstanding on loans for House Purchase is reduced by £107,728. In view of Government
restrictions on the building of houses by private enterprise, fewer depositors been able to take advantage of the Bank's House Purchase
facilities, but as more houses gradually become available, business in this department will recover. Reserve for Repayment of Income
Tax and Sundry Debtors is £618,950, as against £496,712 last year. The increase of £122,238 is due to the larger amount of tax reclaimable
from Inland Revenue and to the increased reserve of accrued interest on direct investments. The total of the Reserve fund is now £520,126,
which includes the £14,031 excess of income over expenditure for the year and £5,604 profit made on sale of investments.
2. Depositors'
Balances.
Detailed statement of balances due to depositors accompanies this report. Every Branch records an increase, the most
noteworthy being Head Office, Sutton Coldfield, Erdington, Bearwood, Solihull, Acocks Green and Hall Green. A classification of the
balances shows as follows:
|
Under |
£150,000 |
|
|
5 |
Branches |
|
Between |
£150,000 |
and |
£250,000 |
2 |
" |
|
" |
£250,000 |
" |
£500,000 |
7 |
" |
|
" |
£500,000 |
" |
£750,000 |
18 |
" |
|
" |
£750,000 |
" |
£1,000,000 |
9 |
" |
|
Over |
£1,000,000 (including Head Office) |
|
|
27 |
" |
3.Open Accounts.
Detailed statement of open accounts is submitted showing the grand total of 585,863 in the Savings Bank Department.
This is an increase of 12,918 on the previous year. The largest increases are recorded at Head Office, Sutton Coldfield, Kingstanding,
Wells Green, Acocks Green and Alum Rock. A classification of the accounts gives the following:
|
Under |
1,000 |
|
|
2 |
Branches |
|
Between |
1,000 |
and |
5,000 |
13 |
" |
|
" |
5,000 |
" |
10,000 |
32 |
" |
|
" |
10,000 |
" |
15,000 |
15 |
" |
|
Over |
15,000 (including Head Office) |
|
|
6 |
" |
4. Transactions,
Detailed
statement of transactions, which is also submitted, shows the number of people who use the Bank's facilities. Deposit and withdrawal
transactions have increased by 150,797, while Mortgage transactions have declined by 7,670. Collections of Corporation Accounts show
a decrease of 4,018, but there are increases of 4,141 in Home Assistance Payments and 3,779 in Tuberculosis Scheme Payments. Evacuation
Fees collected are down by 26,747, and will eventually cease when outstanding fees are collected.
5. National Savings Campaign.
The
magnitude of the Bank's contribution to the War Finances from the 21st November 1939 to the 31st March 1946 will be perceived from
the following figures:
|
Excess deposits: |
£ | ||
|
|
2½% War Bonds |
1946-48 |
1,000,000 |
|
|
2½% War Bonds |
1951-53 |
1,000,000 |
|
|
2½% War Bonds |
1952-54 |
4,500,000 |
|
|
2½%
War Bonds |
1954-56 |
1,000,000 |
|
|
3% War Loan |
1955-59 |
206,700 |
|
|
3% Savings Bonds |
1955-65 |
6,500,000 |
|
|
3% Savings Bonds |
1960-70 |
12,822,000 |
|
|
3%
Savings Bonds |
1965-75 |
9,725,300 |
|
|
With National Debt Commissioners |
1,000,000 | |
|
|
|
|
37,754,000 |
|
|
Sales of Savings Certificates |
5,629,279 | |
|
|
Sales
of Defence Bonds, etc |
1,035,150 | |
|
|
|
£ |
44,418,429 |
The above figures do not include sales of National Savings Stamps or Municipal
Bank Coupons, because these eventually merge into Certificates or deposits, unless encashed beforehand.
6. General.
The
Bank has had another successful year, but it has been a heavy strain upon the staff. All the officers (both permanent and temporary)
have responded willingly to the calls made upon them and done the work well. "Salute the Soldier" Campaign involved much hard work
and long hours for most of the staff, but they had the satisfaction of sharing in the success achieved.
Now that the European War has
come to an end, it would be wise that the Committee should consider their programme for providing better accommodation at several
Branches. The present facilities are inadequate in some cases, and in particular the very limited space for the public and the cramped
working conditions for the staff at Harborne and Sparkhill Branches are, and have been, a serious concern. I hope to present a full
report on this matter at an early meeting.
Other matters which should also receive early consideration by the Committee include
the policy regarding examinations and the effect on promotions; the desirability of having a Welfare Sub-Committee to deal with staff
matters; the conditions governing the use of the Assembly Hall, and the position of the Welfare Fund. On these matters I shall be
prepared to submit reports to a later meeting.
7. Excess and Short Cash.
During the year ended 31st December 1944, excesses
in cash amounted to £227. 8. 10d, and shortages to £438. 5. 5d, the latter figure including £48. 2. 2d in reimbursement of wrongful withdrawals. In accordance with practice, it is recommended that a cheque be drawn on the General
Account to meet the shortages, viz. £438. 5. 5d, and placed to the credit of the "Under and Over" Account.
8. Extra
work in connection with Annual Balance.
I am pleased to record my appreciation of the excellent services rendered by the staff
in carrying through the work of the Annual Balance.
As in previous years, every endeavour was made to bring the work forward
as far as possible so that the actual Balance should be facilitated. Preparatory work was begun on Thursday, March 28th, when the
staff worked from 9am until between 7 and 8pm. The same procedure was followed on Friday, March 29th when the staff worked until 10pm,
and again on Saturday (which as actually a half-day holiday) work was continued until 10pm. The following morning (Sunday) work was
resumed at 8am and continued during the day until 10pm, by which time all Branches and Head Office had balanced.
On the next
day (Monday), April 1st, the staff were instructed to leave not later than 5:30pm, in order to gain a brief respite, but during the
remainder of the week from Tuesday to Friday, the staff worked from 9am until between 8:30 and 9pm each day, in order to complete
the work of adding interest for the current year on the 585,863 ledger accounts. Considerable overtime has been worked since that
date, owing to pressure of business, and the additional work inevitably associated with the end of the Financial Year.
I should
also like to express my appreciation of the assistance given by various firms, who loaned to the Bank Comptometers and Operators.
The
Committee have for some years now authorised a grant to be divided amongst the staff for this extra work, and below I give the number
of open Savings Bank accounts for the last five financial years and the amount of the grant:
|
|
Number of Accounts |
|
Amount
of Grant (£) |
|
1941 |
489,165 |
|
850 |
|
1942 |
512,114 |
|
850 |
|
1943 |
537,030 |
|
850 |
|
1944 |
557,792 |
|
850 |
|
1945 |
572,945 |
|
900 |
|
1946 |
585,863 |
|
|
In
addition to the above accounts, balances have had to be extracted in respect of 5,434 House Purchase accounts.
Owing to the 31st
March falling on Sunday this year, the Depositors suffered no inconvenience, the result, however, was that the staff had to work throughout
the whole of Sunday.
May 1946
[NOTE: the Bank Committee granted £1,000 to be distributed amongst the staff in relation
to the March 31st Balance.]