90
F 405
British Finance and Commerce.
Banking situation.
By Robert Mackay.
While adjusting their operations to meet changes in economic
conditions, and at the same time giving effective support to the
expansion of industry, British banks have been successful in main-
taining their high level of profits. The five leading British
banks, commonly known as the Big Five, have now announced their
interim dividends for the half-year to the 30th of June, and in
each case they have been up to the level of many years past. The
average of these inte: im dividends works out at a very satisfactory
rate, being 7 per cent on an aggregate paid-up capital of over
£651⁄2 millions.
higher, for in previous years interim dividends on the same basis
as those declared this year were followed by a full dividend, which,
at the end of the year, averaged 15 per cent for the five banks in
question.
The actual earning capacity is, however, much
1
Other banking institutions are showing equally good results.
One of the large British banks has declared an increased interim
dividend, the rate being 7 per cent, as compared with 7 per cent
last year.
In its balance sheet made up for the 30th of June, this
bank was able to show a sharp rise in advances to clients this year,
comparative figures being £43,417,000 in 1937, 42,665,000 in 1938,
and £46,462,000 in 1939. The large London discount houses are also
declaring interim dividends at their usual rates, and it is clear
that the British banking position was never sounder than it is
to-day.
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