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1. Annual Accounts

I have pleasure in submitting Income and Expenditure Account and Balance Sheet for the year ended 31^st March 1950.

The Income and Expenditure Account shows working expenses to be £159,612, 10. 3 as compared with £162,583. 1. 10 for the previous year, a reduction of £2,970. 11. 7.

There were increases in the cost of Heating, Lighting and Cleaning, £250; Rents, Rates and Insurance, £165; Postages and Telephone Charges, Travelling and Miscellaneous Expenses, £389. Salaries and Wages, together with Superannuation Contributions totalled £124,186, as compared with £124,190 last year.

On the other hand, there were reductions in Printing, Stationery and Advertising, £345; Architects’ Fees, £567; Repairs and Decorations, £2,893.

Expenditure in connection with Alterations to Premises, as will be seen, is also less by £1,621.

Although the amount spent on repairs and decorations has been limited during the year, there is an accumulation of such work deferred from the war years which will be dealt with as circumstances permit. The general liability for repairs is increasing on older Branch buildings, and the precaution has been taken of increasing the Reserve for Deferred Repairs by £5,000.

So far as Income Tax is concerned, the increased charge of £3,864 reflects the small increase in the difference between interest received and paid, and to some extent, the reduction in the Management Expenses claim.

War Damage reimbursements amounted to £3,859, as compared with £1,434; while the amount of commission received was £3,184 (including £1,443 in respect of Purchase of Investments) as compared with £1,780.

The Balance Sheet shows the amount standing to the credit of depositors to be £85,121,031. 19. 4 (including interest), an increase of £1,752,907 compared with £2,414,122 during the previous year.

While deposits increased from £22,469,478 to £23,000,831 as compared with the previous year, a reflection of a reduced general level of savings throughout the country is seen in the increase in greater ratio of withdrawals from £22,234,335 to £23,486,787.

When, however, it is borne in mind that savings in Birmingham and District as represented by deposits in this Bank increased from £29,350,235 at the 31st March 1939 to £83,368,124 at 31st March 1949, it is not surprising that some depositors, while fully appreciating the value of thrift, have nevertheless been obliged, during the year under review, to use some of their past savings to meet the cost of deferred purchases when goods become more plentiful, although, unfortunately, more costly.

The amount on deposit with the Corporation is £38,858,908, an increase of £651,990 including Direct Investments in Government Securities and other Trustee Securities of £13,196,000. Investments in dated Government Securities and Guaranteed Stock amount to to £42,587,185 of which £41,004,000, it will be remembered was made in accordance with arrangements made with HM Treasury. The market value of the Bank’s direct investments was £40,760,170 (excluding accrued interest).

Although building restrictions have limited the activities of the House Purchase Department, every endeavour has been made to help applicants who had the opportunity of purchasing houses. During the year £711,661 was advanced and £358,630. 2. 11 repaid. The amount outstanding is now £1,905,115. 4. 6 representing a net increase of £353,031.

The value of Land and Buildings now appears at £1,000, the figure at which they stood in March 1949 – the subsequent additions £2,013. 12. – having been written off. With regard to the Safe Deposit extension made in 1946 of £5,250. 15. 3 has been written off this year, leaving £11,353.

After charging all Expenses, and making allowances for Depreciation, Income Tax, etc, there remains a surplus of £12,456. 18. 3 which has been carried forward.

2. Depositors’ Balances.

Detailed statement of balances due to depositors is submitted with this report. The most noteworthy increases occurred at Head Office, Sutton Coldfield, Solihull, Bearwood, Acocks Green, Quinton, Halesowen and Oldbury. Decreases have been recorded at Handsworth, Small Heath, Balsall Heath, Sparkbrook, Ladywood, Stechford, Sherlock Street and Newtown Row.

The classification of balances is as follows:

Under	£150,000	….	…. ….	5	Branches
Between	£150,000	and	£250,000	1	“
“	£250,000	“	£500,000	4	“
“	£500,000	“	£750,000	14	“
“	£750,000	“	£1,000,000	13	“
Over	£1,000,000	(including Head Office)		31	“

3. Open Accounts.

Detailed statement of open accounts is submitted showing the grand total of 639,220 in the Savings Bank Department. This is an increase of 12,498 for the year. The largest increases are recorded at Head Office, Yardley, Sparkhill, Kitts Green, Oldbury and Wells Green. A decrease was recorded only in the case of Newtown Row.

The classification of open accounts is as follows:

 

Under	1,000	….	…. ….	3	Branches
Between	1,000	and	5,000	8	“
“	5,000	“	10,000	31	“
“	10,000	“	15,000	19	“
Over	15,000	(including Head Office)		7	“

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 84,572 and mortgage transactions by 874. Collection of Corporation Accounts, including Accounts of the Midlands Electricity Board and of the West Midlands Gas Board, show an increase of 88,004.

5. National Savings.

The Bank’s contribution to National Finance from 21^st November 1939 has been as follows:

Excess Deposits placed with the Government	£41,004,000
Sales of Savings Certificates	8,184,535
“ “ Bonds, etc	1,493,830
	£50,682,365

6. Direct Investments.

The Bank’s direct investments at 31^st March 1950 were as follows:

			£.	s.	d.
2½%	National War Bonds	1951-53	1,000,000.	-	-
2½%	“ “ “	1952-54	5,000,000.	-	-
2½%	“ “ “	1954-56	1,000,000.	-	-
2½%	Savings Bonds	1964-67	2,500,000.	-	-
	On Deposit with National Debt Commissioners		1,600,775.	-	-
3%	War Loan	1955-59	206,700.	-	-
3%	Savings Bonds	1955-65	7,097,403.	18.	3.
3%	“ “	1960-70	12,822,000.	-	-
3%	“ “	1965-75	9,725,300.	-	-
3%	British Electricity Guaranteed Stock, 1974-77		1,385,006.	5.	-
3%	National Defence Loan	1954-58	100,000.	-	-
3%	Funding Loan	1959-69	150,000.	-	-
			42,587,185.	3.	3.

Of the above, £41,004,000 was invested under the arrangement with the National Debt Commissioners.

7.Volume of Savings Bank Business.

Since the commencement of the Bank on 1^st September 1919 to 31^st March 1950, the turnover on Savings Bank accounts has been as follows:

	£.	s.	d.
Deposits	313,059,513.	4.	9.
Interest credited	25,255,561.	5.	3.
	338,315,074.	10.	-
Withdrawals	253,194,042.	10.	8.
Balances due to Depositors	85,121,031.	19.	4.

H. CARVER.

May, 1950.

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