Tíminn - 26.06.1970, Blaðsíða 12

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The strength of onr accounts
reflects the broad base of our business!’
Mr. Jocelyn Hambro reports to shareholders.
I am pleased to be able to report that
in a difficult year we can show improved
profits. Our disclosed profit figure is
£2,217,973 against £1,920,215 last year - an
all-time record.
We are paying an increased final
dividend of 20| per cent. on the £10 and 5s.
shares, to be paid on an increased capital
following our acquisition of the Allied
Group of Unit Trusts last August. Dividends
will cost us £1,358,055 this year against
£1,203,164 last year. This increase is
matched by an increase in the underlying
cover.
BANKING BUSINESS
The past year was one of many
vicissitudes. The French franc was devalúed
and the Deutschmark upvalued. These and
other currency uncertainties produced
inevitable problems which were made more
difficult by unhealthily high intemational
interest rates throughout most of the year. Our
own banking business has become increasingly
accentuated away from sterling towards the ■
Eurodollar and other Euro-currencies.
The ceilings imposed by the Bank of
England have restricted our sterling business,
but we have nevertheless taken full advantage of
every opportunity to grant sterling facilities
within these hmits.
BROADLY BASED
The strength of our accounts reflects the
broad base of our business .We do not
concentrate on one particular facet of the
financial scene. We range over the whole
Spectrum of banking, including acceptances,
currency operations, mergers, take-overs,
funfls management, unit trasts, registration
and direct investment. All of them contribute
to the results.
INVESTMENT BANKING
Our Department of Industrial Services
this year experienced a decline in activity in
take-overs and mergers of quoted companies,
and therefore a dechne in income from that
source. There was however a significant increase
in the number of mergers arranged between
private and unquoted companies.
There was also an increase in the wliole
range of activities by the department outside
the United Kingdom, in non-U.K. business
issues, take-overs, advice oncorporate finance
and most particularly in special situations
and the provision of venture capital.
UNIT TRUSTS
The market setback has caused some
disappointment for many unit trast holders—
especially those who were entering the field of
equity investment for the first time. To those
people it should be said that there have been
market reverses before and will be again;
nevertheless, if they hold on they may
reasonably expect to see not only a good capital
gain in the future but also a rising level of
income from their unit investment.
Despite the reduction in the flow of
money to the funds our unit trust interests
have continued to expand satisfactorily.
We are now involved with Funds of some
£180,000,000 which puts us in the top three
of the entire industry. I consider this very
satisfactory progress in view of the fact that we
did not enter the movement until the
end of ig66.
EUROPEAN ACTIVITIES
Overseas it has been a year of continued
expansion. Our representatives throughout the
Continent have been extremely active, so
much so that although Britain is not yet in the
Common Market we at this Bank already'fáj -
very much a part of it.
In Italy our traditional relationship with
the entire banking community continues to
expand and to be strengthened by new tiés.
In France we have continued to do a great
deal to help U.K. companies to enter or to
extend their business in the French market.
We have also given advice and assistance to
French companies operatihg in other countries.
HAMBRO INTERNATIONAL
Development of Hambro Intemational
N.V., Amsterdam, has fully hved up to our
expectations and the Company has out-
performed all other investment companies
quoted in Amsterdam.
The two ship mortgage companies, Ship
Mortgage Intemational (Norway) N.V., and
Ship Mortgage International (Sweden) N.V.
have got off to a splendid start and in their
first year, which ends on 3oth June, 1970, we
estímate they will have a combined portfolio of
$70 million. These two companies are
becoming a significant factor in the extensive
and continuing financial assistance which we
provide to our Scandinavian shipping
customers.
EXPANSION IN IRELAND
Allied Irish Investment Bank Limited
acliieved further substantial growth during
1969. Total resources of the bank, reflecting the
rapid expansion of the Irish econbmy, grew by
125 per cent. The bank played a prominent
role in the financing of both Irish and
international industry and also played a more
activé role in the Eurodollar market.
GHANNEL ISLANDS
In Jersey there has been a good increase
in business in a.ll departments.Wé have
recently introduced current accounts for
selected customers and this service will be
extended when we move into our new
premises at 13 Broad Street, which are now
nearing completion. Our Guernsey subsidiary
has also strengthened its business during the
past very active year.
PROGRESS IN MALTA
In Malta, where together with Barclays
Bank DCO, we formed Investment Bank of
Malta two years ago, business has developed in
a satisfactory way. The new bank is currently
financing shipbuílding, horticulture, light
industry, tourism and building development.
MIDDLE EAST
In the Middle East we were instrumental
in setting up a new merchant banking
operation - Dubai Bank Limited. We expect
considerable developments in the merch^gj
banking field in the Middle East, whe^t^V
interests are growing.
SOUTH AMERICA
Our activities in South America expanded
and we are now represented in Brazil by Cia.
Metropohtana De Credito, Financiamento e
Investimentos in which we have taken a 20
per cent. interest.
HAMBRO AMERICAN
In our financial year ended on 3ist March,
1970, Haníbro American Bank & Trust Co.
has made a profit of over $1,000,000 after all
taxes and provisions.
Conditions in the U.S.A. have been far
from easy for a young organisation such as
HABATCO, but in spite of exceptionally high •
interest rates and athoroughly depressed
stock market, HABATCO continues to grow
in a most encouraging way.
Of particular importance to us during the
past year has been the co-operation of
HABATCO with our Medium Term
Department in London, in raising funds
for U.S. corporations.
In London, Westem American Bank
(Europe) Limited, in which we have a
substantial shareholding, has paid its first
dividend after two successful years of trading.
Tlie bank carries on an intemational
banking business with special emphasis on
medium tojonger-term loans for major
internatiónal companies and Government
agencies. Its total assets have doubled over
the past year to neariy £205 milhon.
THE FUTURE
At this time one can only foresee a
difficult year ahead. Wall Street has fallen to its
lowest point since 1962 and many
Governments, including our own, are
wrestling with the problem of wage inflation.
Providing extemal conditións permit I am,
however, confident that the Bank will show
continued progress during the carrent year.
HAMBROS BANK CONSOLIDATED FINANCIAL STATEMENT
as at 3ist March, 1970. 1
1969 1970
í í
26,145,000 Paid-Up Capital and Reserves 29,895,000
4,200,000 Loan Capital 4,200,000
378,605,000 Current, Deposit and Other Accounts 462,215,000
853,000 Proposed Final Dividends 980,000
57,938,000 Acceptances for Customers 60,763,000
467,741,000 558.o53.ooo
78,596,000 Balances with Banks, at Call, Cash and Bullion 118,809,000
119,984,000 Short Term Loans to Banks and Local Authorities 96,162,000
15,867,000 Bills discounted and Bank Certificates of Deposit 16,199,000
20,629,000 Current Investments 36,843,000
161,521,000 Loans, Advances and Other Accounts 213,018,000
57,938,000 Customers’ Liabilities for Acceptances 60,763,000
13,821,000 Fixed Investments 11,960,000
(615,000) Goodwill on Consohdation 4,299,000
467,741,000 558,053,000
1,203,000 Dividends Paid and Proposed 1,358,000
717,000 Transfers to Reserves 860,000
1,920,000 PROFIT FOR THE YEAR 2,218,000
The foregoing is from the annual statement to shareholders of Hambros Bank Ltd. by the Chairman, Mr. Jocelyn líambro M.C.
The fifty-eighth Annual General Meeting of the companv was held at the offices of the bank, 41 Bishopsgate, London EC2 on Thursday, 25th June, 1970.
Hambros Bank: our business is to help yours.
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