Tíminn - 13.07.1972, Blaðsíða 13

Tíminn - 13.07.1972, Blaðsíða 13
Fimmtudagur. 13. júli. l!>72 TÍMINN 13 HAMBROS LIMITED A statement of the year's progress. Mrjoœlynlhmhmjsæ^reportstoshamhdáers. A major event occurred during the year when we found ourselves legislated out of the U.S.A. by the One Bank Holding Company Act. Having, only thrée years previously, been brave enough to "hang out our shingle" on Wall Street and done satisfactorily well in the meantime, it was with much regret that we decided that the penalties imposed by the Act on our non- U.S.A. activities were too great a burden and that we should, therefore, give up accepting deposits in New York. We spent many hundreds of man hours explor- ing the various avenues open to us, but in the end, withdrawal emerged as clearly the right course for us and we proceeded to sell our business to First Empire State Corporation, Buffalo. We look forward to our association with the new owners and we welcome their President, Mr. Charles Dicbold, to the Board of Hambros Bank Limited. On 3ist March this year, I retired as Chairman of theBank infavour of mycousin, Charles Hambro. Seven years ago when, owing to the sudden death of Jack Hambro, I became Chairman, we set out with a young team. Today, we are all seven years older and it seemed essential to me to let in some blue sky for the up and coming generation. I intend to continue as Chairman of Hambros Limited and, in a non-executive capacity, of its direct United Kingdom subsidiaries other than the Bank. I extend to my cousin and his team the very best of good wishes for the years to come. I hope that my advice will be of value to them, but I wish to stress that it will be advice only. We welcome to the parent Board Mr. Ian Morrow who has been associated with us for many years as leader of our team of industrial advisers. He will serve as a part-time director, bringing wide experience and great ability to our affairs. Group Earnings and Accounts At the half-year stage last September we felt obliged to tell Shareholders that we believed it unlikeíy that results for the full year would show much change from those of the previous year and we referred speci- fically to certain larger than normal debt provisions with which we were faced. In reporting a Group profit after tax of £4,094,000 we are happy that our worst fears were, in the event, not realised, that this profit is in fact over 36 per cent higher than last year's and that we have been able to deal with the problems to which wereferred entirely out of current earnings. In the Notes that form part of the accounts we have set out in some detail the accounting policies of the Group. In common with other Accepting Houses we continue to state our banking profits after tax and after a transfer to inner reserves. Also we observe the conventions for banking companies in our balance sheet. In some respects these bear more heavily on our reported earnings than would, for instance, the method of dealing with debt losses adopted by the Qearing Banks. We support the moves towards full disclosure of banking earnings, but, equally, we believe .that Shareholders should be fully informed of the effect of the existing conventions. The accounts of Hambro Life Assurance are consolidated with those of other companies of the Group but the consolidated net profit contains no contribution from Hambro Life. The consolidated balance sheet has again increased in total and reflects an unusually liquid position at the year end. This is largcly due to our opcrations within the eurocurrency interbank market. The current year has also shown a marked increase in internally generated reserves. This arose partíy from our consolidation of Merchandise and InvegTnent Trust's reserves when that company became a subsidiary, partly from a re-valuation of oor holding in Berkeley Hambro Property Company and partly from normal investment operations. We have taken the opportunity of eliminating from the con- solidated balance sheet the item of Goodwill which absorbed £6,272,000. Nevertheless we are still left with an increase in capital and published reserves of £8,695,000 of which aíl but £2,538,000 was internally generated. HambroLife The confidence I expressed last year in our new venture in the life assurance field, led by Mr. Mark Weinberg, was more than justified by the exceptional growth of Hambro Life in its first year of operation in unit-linked assurance. During the year, over 30,000 new policies were issued and, by 3ist March, 1972, the investment funds of the Company had grown to nearly £50 million. Hambro Life has established 26 branches and now enjoys the support of leading insur- ance brokers, as well as its own sales associates, throughout the country. Measured by new sales, it reckons it is already in the top half-dozen life assur- ance companies in the United Kingdom and at ist June its total assets were about £60,000,000. An expanding life assurance company is usually expected to run at a deficit for anything up to its first ten years. It is therefore particularly significant to note that, for its accounting period ended 3ist December, 1971, Hambro Life succeeded in achieving a small surplus. This reflects the tight control exercised on expenses as well as the marketing success and an in- creasing surplus is expected in the future. For the present, such surpluses will be retained in the Life Assurance Fund to strengthen the resources of the company. Berkeley Hambro Property interests during the last few years have become an increasingly important part of our opera- tions. We had acquired substantial sites and buildings adjoining our Head Office in Bishopsgate, which we already owned, with a view to major re-development of the whole area. In addition, we had built up a department providing specialist property management /*" HAMBROS LIMITED Consolidated Financial Statement as at 3ist March, 1972 t Paid-up capital and reserves .. 43,583,465 Loancapital ...... 17,058,199 Minority sharcholders' interest insubsidiaries .. .. 6,719,552 Assurance fund of Hambro Life AssuranceLtd..... 25,619,806 Current deposit and other accounts...... 727,821,264 Proposed final dividends .. 1,428,137 Acceptancesforcustomerz ., 81,914,829 £904,145,252 Balance with bankers and money atcall ...... 46,373,363 Bank certificates of deposit and bills discounted .. .. 16,217,504 Term loans to banks ánd local authorities...... 319,313,290 Government and other securities 18,621,848 Bullion and trading stocks .. 48,987,164 Advancesandotheraccounts .. 303,923,986 Customers' liabilities for acceptances...... 81,914,829 Investment* .. .. .. 68,793,268 f904,145,252 Dividends paid and proposed ., 1,839,083 Rctaincd profits...... 2,255,759 PROFITFORTHEYEAR .. £4,094,842 1971 £ 34,887,932 18,244,261 10,198,316 638,631,228 1,111,734 72,754,954 £775,828,425 58,499,864 9,676,584 204,697,522 46,907,625 50,257,134 299,587,747 72,754,954 33,446,995 £775,828,425 1,502,316 1.503.704 £3.006.020 fbr ínvestment and development on behalf oc pmrate clients and institutional customers. Last year we decided that these actívities could best be continucd and expanded if they were merged into a quoted property company and we negotiated the sale of all our property interests to the Berkelcy Property and Investment Co. We already held about 12 per cent of Berkeley and, as a result ofthc merger, this is now increased to 44 per cent of the enlarged oompany which has been renamed Berkeley Hambro Property Co. The Board of Berkeley Hambro is headed by Mr. H. N. Sporborg, and the management has been reinforced by our former propcrty team headed by Mr. john Spink, who is now deputy chair- man and a joint managing director of Berkeley Hambro. All the Group's property interests, whidi also include Property Fund management for Hambro Life, are now entrusted to Berkeley Hambro. These com- plement the already substantial operations that Berkeley had in North America, the Channel Islands and, of course, in the United Kingdom. We have great confidence in the future of this opcration. Earopeaa Economic Comrmmity and the Future The Gty of London finds itself faced with a great challenge in the next decade. If the opportunities in Europe are seized, the scope is tremendous and the Merchant Banks should be in the forefront of this effort. Our ease of dealing on the London Stock Ex- change, for instance, with some help from the Govern- ment in respect of Bearer and No Par Value Shares, stamp duty and a simple method of Registration could make London the centre of deahng in all European securities. The London Markets in Money, Foreign Exchange and Commodities are also more highly developed than their counterparts in Europe^ In these comments I have said nothing of the mainstream of banking activities which are the pre- dominant contributors to the results you see and occupy by far the greater part of our attention. That these may be taken so much for granted is a tribute to the established and continuing confidence that exists between banker and customer in all those areas, ship- ping, forestry, leasing, funds management, corporate finance, etc, on which we have tried to concentrate. There has been a satisfáctory increase in our business in all these areas, and we have also made further pro- gress in developing new business in other countries where we have become more deeply involved in recent years. Our acceptance credits in particular show a satisfactory increase from £73 m. to £82 m., and we have great faith in the continued expansion of this instrument of finance, in internationai trade. The business of an international merchant bank is many sided. Our intercsts, our oífices and our staff stretch across the world. During the year we have disposed of our Regis- tration Department and we wish to extend our thanks particularly to all those involved in the transfer to National Westminster Bank. To all our employees I would like to express my personal thanks for thc support they have given me as Chairman over the last seven years, for their hard work and for iheir contri- bution to the growth and development of our business. CcyiesofmeAimnalReportcanbedbtalBfldfipom The Secretary, Hambros T .imitcd, 4i,Bishopsgate, London,] HAMBKOS LEMrrED 41 Bishopsga te, London ECzP 2AA **A**%*WS



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