Tíminn - 15.07.1969, Blaðsíða 6

“In five years,
Hambros Bank’s balance sheet totalhas gone
from £208 milíion to £468million’.’
Mr. Jocelyn Hambro reports to sxiareholders.
I am very pleased to be able to
report to our shareholders that this has
been another year of most satisfactory
trading in all departments of the Bank.
This has resulted in a signiíicant
increase of profit and in substantially
larger balance sheet figures.
• Our disclosed profit of £1,920,000 after
trxatiön and transfer to inner reserves
represents ari increase of 33 % overlast
year's figures.
The total of Hambros Bank Ltd's
balance sheet has increased from £325m to
£42 8m; a significant rise.
The consolidated balance sheet ofthe
Gronp shows a fhrther increase in its totals
to £468m. This increase is mainly due to the
consolidation ofour American interests for
thefirst time.
The lending ceilings placed upon us are
now 102% of the relative figures outstanding
on the base date of i8th NoVember, 1967 in
respect of loans, advances, bills and
acceptances, excluding fixed rate export
lendings and, of course, the public sector.
Fortunatély, the limitations do not extend
to currencies other than sterling.
Our loans and advances have increased
substantially during the year but the whole
of this increase is attributable to Eurodollar
and other foreign currency lendings.
Were it notfor thefacility weþossess of
lending in these currencies we should by
now have lost the greaterpart ofour overseas
customers, who would have been driven to look
elsewhere, to other countries and otlier sources,
for their legitimate borrowing requirements.
Merchandise & Investment Trust.
As I stated last year, our effective
holding in Merchandise & Investment
Trust Ltd. (MIT) is increased to 87J %
through other associated holdings. As it is of
considerable benefit to us I would like to
refer again to its activities.
Through MfT, the Bank holds the bulk
of its direct investments in industrial,
commercial and other companies. These
range from quoted companies, in which our
stake may be comparatively minor, through
unquoted companies where we may have a
larger interest, to companies such as
Mocatta & Goldsmid which MIT wholly
owns.
The approximate value of the net assets
of MIT and certain of its associated
companies attributable to the Bank’s
beneficial interest of 87!% is estimated at
£5,000,000, based on as yetunaudited
figures at 3ist March 1969.
Shareholders will be interested to know
that the Bank’s investment in MIT and
these other companies stands in the Bank’s
balance sheet at a figure below £1,000,000.
HambroAmerican Bank &’Trust Go.
On ist November, 1968, the Hambro
American Bank Trust Co. opened at
25 Broad Street, New York.
This new bank was formed by us in
partnership with a group of United States
individual shareholders who are
representative of many aspects of business
throughout that country.
vve beiieve that there is a great potential
for the specialized merchant banking
services which we can now offer to our
customers and friends throughout the world,
either in London or New York, or jointly in
both centres.
I amþleased to be able to inform you that
the Hambro American Bank & Trust Co is
transacting a most satisfactory volume of
business. Its total assets are already in excess
of $50,000,000.
Western American Bank (Europe).
Hambros Bank has a 28 per cent interest
in Westem American Bank (Europe), which
is based in London and published its first
setof results in March.
They cover the 13'months to
3ist January 1969, during which period a
net profit of £380,307 was achieved.
Both the eamings of the Bank and the
loans made in Euro-currency, which totalled
the equivalent of nearly £89 million (less
participations taken by others of nearly £21
million) comfortably exceeded original
projections.
Total assets at 3 ist January were in
excess of £104 million.
Progress of the Group.
In the last few years Hambros has
developed almost beyond recognition.
Five years ago our consolidated balance
sheet total stood at £2o8m.
Today, it is well over twice that figure.
To mention one or two specific areas-
we have, for example, over the last few ,
years developed on a large scale the
financing of ships, particularly of new
buildings at Scandinavian yards for
Scandinavian account.
In this field we have enjoyed close
co-operation with Scandinavian banks and
With an eye to intemational developments
both in shipping and finance we have
through Hambro InternationalN.V. recently
formed Ship Mortgage International
(Norway) N.V. in Amsterdam jointly with
Den norske Creditbank, Christiania Bank
og Kreditkasse, Norsk Skibs Hypothekbank
A/S and Bank Mees & Hope N.V., and we
have reached agreement with Skandinaviska
Banken and Bank Mees & Hope N.V. for
41 Bishopsgate, London EC2.
HambrosBank:
our business is to help yours.
the formation of Ship Mortgage
International (Sweden) N..V.
In the northern hemisp.here als<< we
have helped finance huge h.ydro-electric and
steelprojects.
We are involved in the development of
new industries in the MicMle East.
We have arranged lcans for tele-
communications in BrazÆI.
WTe have a superb n(d:work of oífices and
correspondents throughöut the Continent of
Europe and this is anotla.er area in which I
anticipate substantial diC.velopment during
the year ahead.
We are a bank withynodern ideas and
modern þeoþle running' it. The average age
ofour workingdirector5’ is under 45. And
a good 'number ofthem úre in their thirties.
At home, we are fi/ttding that the
progressive businessnasm, whatever the
scale of his enterprise/, is making increásing
use of the services wbjch we have created
forhim.
We, in tum, are -ÉDCtively going out to
meet him so as to tellhim about ourselves
and to dispel the apparently awe-inspiring
mystique that attachies to that very
old-fashioned name*Merchant Banb’.
Industrial Sejtvices.
Through 'our Dcpartment of Industrial
Services, we can tackle most financial
problems in the dayfttq-day development of
modern itidustrial fjinwof all sizes, not only
in this country, bnií increasingly overseas.
Our Investment Depaxtment continues
to develop rapidlj1, in the management of
investment trasts., pension funds, and in tha
unittrustfield.
It is about íi»| years ago that we
established our fiföt Bank unit trust. Today,
we are involved ixn the management ofunit
trustfunds exceteding £ioom.
The year ahead.
Looking ailtheyear ahead, I bélieve ih'e
most outstandi ng singlefactor in banking wiU
be the rélationsihiþ between America and
Euroþe. And Hhe most imþortant asþect ofthis
will be interest riites.
I hoþe, howemer, that the imþlementation of
Sþecial Drawing Rights by the International
Monetary Fundthis autumn will result in an
imþrovement in mternational liquidity and a
consequent relieffrom the dangerously high
interest rates rulvKg at this moment.
vrÁ nntpnc u*vtf
CONSOimATEli FINANCIAL STATEMENT
as at sist March, 1969
1968
16,703,451 Paid-Up (Japital aaij Reserves
4,200,000 Eoan Capi tal
248,884,471 Current, D eposit and Other
Accounts
668,750 Froposed I ’inp.l Dividends
61,543,241 Acceptanw síor Customers
J0|9
26,759,920
4,200,000
378,604,560
852.649
57.937,854
331,999,913
468,354,983
51,861,710 Balances vA íth Banhs, at CaH,
Cash and Bullion
70,641,821 ShortTerm Loans to Banks and
Local Auí thorities
24,291,889 Bills discotn ited and Banfer
Certificatt js of Deposit
14,698,543 Current InVi sstments
97,43i,7°8 Loans, Adyamcesand Other
Áccounts
61,543,241 Customers’ lÁahilitíesfor
Acceptanq es
11,531,001 Bixedlnve.si;iöents
78,595,952
,19.983,725
15,866,775
20,629,384
161,520,563
57,937,854
13,820,730
33t.990.913
468,354.983
961,250 DividendspBÍctfcmdproposed j,203,164
481,949 Transíers toilt'tsarvcs 717,051
1,443,199 PROFIT FCtJR THE YEAR 1,920,215
The íoregoing is írom the annual statement to shareholders of Hambros Bank Ltd. by the Chairman, Mr. J ocelyn Hambrö' M.C.
Thefifty-seventh Annnal GeneralMeeting of the company will be held at the offices of the bank, 41 Bishopsgáte, London EC2, on Friday, 2j th June, 1969, at nomt.