Financials
The Bank in 1920
The Bank's first period of trading was from September 1st 1919 to March 31st 1920. Having a financial year-end of March 31st brought the bank into line with the other departments within Birmingham City Council, but meant that the Bank's first 'year' consisted of only seven months. This article examines the position of the Bank after those initial seven months.
 
A considerable amount was achieved in those first seven months, but the Bank had the advantage of commencing its existence already running. By replacing its temporary predecessor, the Birmingham Corporation Savings Bank, the BMB had a head start when 22,592 accounts (of the 24,411 accounts in the temporary bank) were transferred. The Bank's General Manager, J P Hilton, described the preliminary work involved, in his book Britain's First Municipal Bank:
 
Having secured the transfers, the next thing to do was to carry them through. This was a big task; the clerical labour involved was enormous. It meant the closing of each account in the temporary bank just as if a withdrawal had been made; it meant the opening of each account in new ledgers. Then there were new pass books and index cards to make out, and particulars to enter in the specimen signature books. Day and night the staff worked in a magnificent manner; their enthusiasm was unbounded. It was team work which enabled the task to be done, and the youngest junior vied with the highest officer in doing his bit. It is team work still which contributes so largely to the successful working of the Bank year by year.
 
By March 31st 1920, those 22,592 open accounts had grown to 40,130 that were located at twenty branches as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Head Office
 17,381
 Sparkbrook
 4,870
 Small Heath
 2,392
 Aston
 2,144
 Lozells
 2,046
 Ladywood
 1,782
 Handsworth
 1,509
 Saltley
 1,041
 Duddeston
 1,015
 Hay Mills
 970
 Balsall Heath
 909
 Rotton Park
 749
 Selly Oak
 735
 Harborne
 466
 Erdington
 458
 Acocks Green
 423
 Kings Heath
 370
 Stirchley
 311
 Bearwood
 307
 Northfield
 252
 
 
40,130
Many of these branches were located in temporary offices, ranging from private houses to a room in a library or a school, as described in entries for the individual branches. Transactions on these accounts numbered 163,787.
 
At the end of this first financial period, the Bank published its Statement of Accounts in two parts: a Receipts & Payments Account and a Balance Sheet. This format was used up until March 31st 1926; subsequent Statements of Accounts produced an Income & Expenditure Account as well as a Balance Sheet.
 
Data extracted from the accounts show that the Bank made a loss of 1,702 in its first trading period:
 Income:
 
 Interest Receivable
 14,495
 Rents Receivable
 53
 Sale of Rules
 36
 Contributions by Bank Staff to Superannuation Scheme
 71
 Total Income:
 14,655
 Expenditure:  
 Interest allowed to Depositors
 9,378
 Salaries and Wages (including National Health Insurance)
 3,653
 Printing, Stationery and Advertising
 746
 Heating, Lighting and Cleaning
 230
 Rents, Rates, Taxes and Insurance
 732
 House Purchase Department: Valuation Fees on Properties
 259
 Repairs, Decorations and Adaption of Premises for Bank Purposes
 524
 Postages, Branch Bank, Travelling and Miscellaneous Expenses
 835
 Total Expenditure:
 16,357
   
 Excess of Expenditure over Income:
 1,702
The Balance Sheet showed the following position:
 
 Liabilities:
 
 Amount standing to credit of Depositors (including interest)
 746,984
 Creditors for Stationery, Repairs, Equipment, etc
 1,748
   
 Total Liabilities:
 748,732
   
 Assets:  
 Cash in hand at Head Office and Branches
 5,732
 Cash with Corporation at Short Call
 698,512
 House Purchase Dept: Amount repayable by Depositors
 39,111
 Debtors for Rent
 14
 Stock of Unused Stationery, Pass Book, etc
 796
 Furniture and Equipment at Head Office and Branches
 1,563
 Structural Alterations of Bank premises
 374
 Parliamentary Bill Expenses of Establishment of the Bank
 928
 Balance of Income and Expenditure Account
 1,702
   
 Total Assets:
 748,732
The deficit on the Income & Expenditure Account was wiped out in the following year when a Profit of 6,539 was made. The Bank then continued to make profits in succeeding years. By March 31st 1923, the deficit of 7,149 held on the City's Borough Fund and Rate Account regarding the accumulated losses of the Birmingham Corporation Savings Bank, was paid off - largely assisted by a Profit made on Sale of Investments that year of 34,156.
 
 The amount due to Depositors at March 31st 1920 was the result of:
 
 Amount deposited (including transfers from temporary bank)
 873,705
 Interest added to accounts
 9,378
 Amount withdrawn
 (136,099)
 Balance due to Depositors
 746,984
   
 In the House Purchase Department, 148 advances were made:  
 Amount advanced
 39,873
 Repayments made
 (762)
 Balance outstanding
 39,111
 
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