1. Annual Accounts
I have pleasure in submitting Income and Expenditure Account and Balance Sheet for the year ended 31st March 1951.
The Income and Expenditure Account shows working expenses to be £165,190, 11. 1d. as compared with £159,612. 10. 3d. for the previous year, an increase of £5,578. 0. 10d.
There were increases in the cost of Heating, Lighting and Cleaning, £1,070; Rates, Rents and Insurance, £293; Postages and Telephone Charges, Travelling and Miscellaneous Expenses, £182; Law and Professional Charges, £256; Contributions to Birmingham Corporation Superannuation Scheme, £6,818.
On the other hand, cost of Printing, Stationery and Advertising was less by £348. and Repairs by £1,305; while expenditure in connection with Alterations to Premises was less by £3,396. Salaries and Wages, less charges for collection of Corporation Accounts etc., amounted to £115,137 as compared with £116,525 for the previous year.
The increase in charge for Income Tax from £19,649 to £47,773, reflects cost of increase in the rate to 9/6d on accrued interest on investments as at 31st March 1951; the Reserve now created for Income Tax, and also the tax on the increased difference between interest received and paid.
War Damage reimbursements amounted to £2,704 as compared with £3,859, while the amount of commission received was £4,381. 5. 9d (including £2,097 in respect of Purchase of Investments) as compared with £3,184.
Deposits during the year increased to £23,807,620 as against £23,000,830 for the previous year, but withdrawals increased in greater ration to £26,103,910 as against £23,486,787.
People save when money is abundant for the proverbial rainy day, or for their own purposes. During the ten years 1940-1950, depositors balances increased by £53,531,643, or 62.9% of the total balances now due to depositors. The fact that more was deposited last year than the previous year indicates the continued desire to save; but the excess withdrawals suggest that saving is perforce now on a short term basis.
Rising prices sap the margin available for saving out of personal incomes, and cause inflated withdrawals from past savings to meet the larger items of necessary expenditure. Nevertheless, the ability of depositors to satisfy their needs during the present economic difficulties illustrates the usefulness of thrift.
In considering the question of withdrawals, reference must be made to the fact that during the year more than £1,480,000 was paid to the representatives of 4,372 deceased depositors. A proportion of this amount would, no doubt, find its way back to the Bank through beneficiaries, but a considerable portion would pass into other channels.
The Balance Sheet shows the amount standing to the credit of depositors to be £85,095,824 (including £2,271,083 interest), a decrease of £25,207 for the first time in the history of the Bank.
The amount of deposit with the Corporation is £38,852,381, including accrued interest. Direct investments in Government Securities and Guaranteed Stocks now amount to £43,093,745, an increase of £506,560. During the year, the Electricity Guaranteed Stock 3½% 1976/79 was purchased for the sum of £1,660,824 and £1,154,264 withdrawn from deposits with the National Debt Commissioners.
Although building restrictions continue to limit the activities of the House Purchase Department, every endeavour has been made to help applicants who had the opportunity of purchasing houses, or who require advances for repairs, alterations, and extensions etc. During the year £687,244 was advanced and £388,887 was repaid. The amount outstanding is now £2,203,472 representing a net increase of £298,357.
The value of Land and Buildings still stands at £1,000. With regard to the Safe Deposit Extension of 1946, the sum of £5,676. 10. 0d. Has been written off and the balance of £5,676. 10. 0d. To be dealt with next year.
After charging all expenses and making allowances for Depreciation, Income Tax, etc, there remains a surplus of £14,405. 8. 9d which has been carried forward.
2. Depositors Balances.
Detailed statement of balances due to depositors is sbmitted with this report. Increases were recorded at Head Office and 25 Branches, and decreases at 42 Branches.
The classification of balances is as follows:
|
Under |
£150,000 |
. |
. . |
4 |
Branches |
|
Between |
£150,000 |
and |
£250,000 |
2 |
|
|
|
£250,000 |
|
£500,000 |
4 |
|
|
|
£500,000 |
|
£750,000 |
16 |
|
|
|
£750,000 |
|
£1,000,000 |
11 |
|
|
|
£1,000,000 |
|
£2,000,000 |
23 |
|
|
|
£2,000,000 |
|
£3,000,000 |
5 |
|
|
Over |
£3,000,000 |
(including Head Office) |
3 |
| |
3. Open Accounts.
Detailed statement of open accounts is submitted showing the grand total of 649,874 in the Savings Bank Department. There is an increase of 10,654 for the year.
The classification of open accounts is as follows:
|
Under |
1,000 |
. |
. . |
3 |
Branches |
|
Between |
1,000 |
and |
5,000 |
7 |
|
|
|
5,000 |
|
10,000 |
32 |
|
|
|
10,000 |
|
15,000 |
19 |
|
|
|
15,000 |
|
20,000 |
5 |
|
|
Over |
20,000 |
(including Head Office) |
2 |
| |
4. Transactions.
Detailed statement of transactions, which is hereby submitted, shows the number of people who use the Banks facilities. Deposit and withdrawal transactions have increased by 71,256 and mortgage transactions by 5,674. Collection of Corporation Accounts, including Accounts of the Midlands Electricity Board and of the West Midlands Gas Board, show an increase of 64,610.
5. National Savings.
During the year 57,358 Savings Certificates were sold to depositors, representing £747,783, and 56 Defence Bonds representing £21,980.
The Banks contribution to National Finance from 21st November 1939 has been as follows:
|
Excess Deposits placed with the Government |
£40,504,000 |
|
Sales of Savings Certificates |
8,932,318 |
|
Bonds, etc |
1,515,810 |
|
|
£50,952,128 |
6. Direct Investments.
The Banks direct investments at 31st March 1951 were as follows:
|
|
|
|
£. |
s. |
d. |
|
2½% |
National War Bonds |
1951-53 |
1,000,000. |
- |
- |
|
2½% |
|
1952-54 |
3,500,000. |
|
|
|
2½% |
|
1954-56 |
1,000,000. |
|
|
|
2½% |
Savings Bonds |
1964-67 |
2,500,000. |
|
|
|
2½% |
On Deposit with National Debt Commissioners |
1,946,511. |
|
| |
|
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 |
1,382,006. |
5. |
| |
|
3% |
National Defence Loan |
1954-58 |
100,000. |
|
|
|
3% |
Funding Loan |
1959-69 |
100,000. |
|
|
|
3½% |
British Electricity Guaranteed Stock, 1976-79 |
1,660,824. |
|
| |
|
|
|
|
43,093,745. |
3. |
3. |
Of the above, £40,504,000 was invested under the arrangement with the National Debt Commissioners.
7. Volume of Savings Bank Business.
Since the commencement of the Bank on 1st September 1919 to 31st March 1951, the turnover in the Savings Bank Department has been as follows:
|
|
£ |
.s. |
d. |
|
Deposits |
336,867,133. |
5. |
4. |
|
Interest credited |
27,526,644. |
14. |
3. |
|
|
364,393,777. |
19. |
7. |
|
Withdrawals |
279,297,953. |
5. |
8. |
|
Balances due to Depositors |
85,095,824. |
13. |
11. |
H. CARVER.
May 1951