Financials
The Bank in 1979
November 20th 1979 saw the severance of the formal relationship between the Bank and Birmingham City Council. This final decade of the BMB's existence began with the following position (as at March 31st 1969):
 
 Amount standing to the credit of Depositors:  £95,949,496
 Advances outstanding, secured by Mortgage of Freehold and Leasehold Estate:  £6,209,640
 Reserve Funds (Cumulative Balance of Income over Expenditure):  £2,799,141
 Ratio of Reserves to the Liability to Depositors:  2.92%.
 Number of Open Accounts:  757,176 (approximately 53% of the population in Birmingham and adjoining areas)
 
The 1970s began with the Bank having recently added an Investment Department and a Current Account Department to its portfolio of Deposit products, and these two new accounts were a major factor in Total Deposits exceeding £100 million for the first time (in 1971/72). The decade was one of generally high interest rates, and the rate payable on No 1 Department savings accounts reached 4½%, and on the Higher Tier of the Investment Department, 9½%.
 
New products and services continued to be introduced or expanded, including SAYE (Save As You Earn); Standing Orders and Credit Transfers; Travellers' Cheques and Foreign Currency; and Cheque Guarantee Cards. The country's currency was decimalised, and the Bank's accounting system was computerised.
 
The Bank's Annual Report for 1976 stated that:
Following the publication of the Page Report on national savings which made far-reaching recommendations regarding the restructuring of savings banks, new legislation was introduced into Parliament removing many of the restrictions under which these banks have always operated and allowing them to extend their services, particularly in the area of credit. The main provisions of the Trustee Savings Banks Act, 1976 will take effect on 22nd November 1976.
In order to make these new services available to customers of this Bank the Birmingham Municipal Bank closed its doors on 31st March, 1976 and on the following day a new bank - the Birmingham Municipal Trustee Savings Bank - opened for business. This new Bank will continue to provide all the services which the old Bank developed in addition to those to be available under the new legislation. To preserve the special relationship with the City, provision is made in the Act for the Trustees of the new Bank to be appointed and removed by the District Council.
 
As an outcome of its new status, the Bank began to offer Personal Loans and Overdraft facilities. A less welcome consequence was that the Bank's profits were now subject to Taxation
 
At March 31st 1973, total Deposits had reached £113,944,933 and the Bank's Annual Report commented:
The increase [in Deposits of £9,062,641] is the largest ever achieved in a year and reflects the excessive supply of money amounting to over 20% which ensued from the 1972 budget and from other government measures which were taken in an effort to expand the economy and reduce unemployment. The planned rapid increase in public spending resulted in a deficit which had to be financed by borrowing, thus causing an upward pressure on interest rates.
 
This high level of increases in Deposits was to continue - in the following six years to November 20th 1979, the average annual increase was over £10½ million, peaking at an increase of £19 million in 1977/78. At November 20th 1979, deposits had reached £177,659,000
 
The higher levels of Profits seen in the latter part of the 1960s, continued - and improved - through the 1970s. A combination of the growth in deposits, a more flexible investment portfolio more able to take advantage of higher interest rates, the benefit of the higher returns on personal lending, and the cost-saving advantages of computerised accounting, were the major factors producing higher profits.
 
The reported Excess of Income over Expenditure ('Profit') in the 1970s was as follows:
 
 Year-Ended
March 31st
 Profit
£
 Cumulative
£
 1969
 
 2,799,141
 1970
226,015
3,025,156
 1971
 476,939
3,502,095
 1972
 356,372
 3,858,467
 1973
612,179
4,470,646
 1974
807,046
5,277,692
 1975
1,188,855
 6,466,547
Mar 1976
1,686,752
 8,153,299
Nov 1976
811,714
 8,965,013
 1977
1,287,000
 10,252,013
 1978
 1,351,000
11,603,013
 1979
2,446,000
14,049,013
The figures in the 'Cumulative' column shown above represent the accumulated totals of the Excess of Income over Expenditure for the period. In addition, there were transactions on the Reserve Funds as follows (£):
 
 1972 - Computer Expenses ……………………………………….……………………………….. (80,000)
 1972 - Surplus on Sale or Maturity of Investments .......................................................................... 836,112
 1972 - Amount Written-off certain Investments written down to par ............................................... (22,765)
 1973 - Development Provision no longer required ………………….………..……..…………….. 30,000
 1973 - Losses on Sale of Investments ……………………………………………...…………… (561,819)
 1974 - Computer Equipment Purchased………………………… ……………….…………….. (159,250)
 1974 - Transfer to Investment Amortization Account ….………………………....…………… (1,088,333)
 1975 - Computer Equipment Purchased ………………………..……………………….……… (217,600)
 1975 - Profit on Maturity of Investments ……………………………………….….……….………… 2,010
 1976 - Profit on Maturity and Sale of Investments …………….…………………....……………….82,675
 1976 - Investment Amortization Account Written-off ………………………………..……...…….(426,376)
 1977 to 1979 Prior Year Adjustments and creation of Reserve for Deferred Taxation……… 2,157,333
 (NOTE: Reserves were adjusted in 1979 by £706,000 to reflect a change in Depreciation policy on Fixed Assets)
 

The amount of these transactions - £551,987 - when added to the £14,049,013 accumulated profits, produced a total amount of Reserves of £14,601,000, as shown in the 1979 published accounts as follows:
 
General Reserves ………………………… 12,475,000
Deferred Taxation ……………….…………. 2,126,000
 
 
 
 The position at March 31st 1979, therefore, was as follows:

 Amount standing to the credit of Depositors:    £177,659,000
 Advances (less Provisions):    £18,465,000
 Reserve Funds (Balance of Income over Expenditure):    £14,601,000
 Ratio of Reserves to the Liability to Depositors:    8.22%.
 
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