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 Fund as follows (£):
1946 - Profit on Sale of Investments …………………………………………………………………………
5,604
1946 - Creation of a Provision for Deferred Repairs at Head Office and Branches …..………………. 15,000
1947 - Work Executed
(cost charged to Reserve for Deferred Repairs) ………..……………………… (2,000)
1949 - Addition to Reserve for Deferred Repairs …………………………………….…..………….……..
2,000
1949 - Transfers between Reserve Accounts ……………………..………………..…...………….…..… 17,158
The net amount of these transactions
- £37,762 - when added to the £537,232 accumulated profits, produced a total amount of Reserves of £574,994, as shown in the 1949
published accounts, as follows (£):
- Reserve for Deferred Repairs at Head Office and Branches …………..….. 15,000
-
Reserve Fund …………………………………………………….......……..…550,000
- Income and Expenditure Account ………………………......……….……….… 9,994
The
Bank's deposit base continued to expand during this period, which was of course, dominated by the Second World War. By March 31st
1949, the number of branches had increased from 62 to 69 - mostly offices that were in the course of completion at the beginning of
the War; no expenditure on Fixed Assets was incurred in the five years ended March 31st 1946. The nation's demand for savings to help
finance the War is reflected in the huge increase in Deposit Balances from £29,350,236 to £83,368,124 - an average of almost £5½ million
each year. The number of Open Accounts increased by 160,559. Unsurprisingly, there was little demand for loans to purchase houses,
and the balance outstanding on Mortgages fell from £2,431,517 to £1,552,084. Instead, deposits received were channelled into Government
Securities as a contribution to the prosecution of the War; at March 31st 1949, almost £56 million was invested in this manner.
The
level of profits over the ten-year period generally declined. The commencement of the War brought a higher annual charge for Taxation,
and there were annual contributions to a War Damages Account. Depreciation was charged at a high rate, so that by March 31st 1941,
the value of Land and Buildings was shown as a nominal £1,000; Furniture and Equipment was completely written off in 1942.
The
1942 Annual Report commented that all accommodation in the Safe Deposit at Head Office was fully taken up. The 1945 Report stated
that: One of the most gratifying services the Bank has rendered is the provision of Safe Deposit facilities at Head Office. With the
advent of war the advantages of this provision were recognised, and all the accommodation, consisting of 4,640 safes was quickly taken
up. We have, probably, the most up-to-date Safe Deposit in the country. For a small annual charge depositors can rent a safe in which
to keep their deeds, documents, etc., with the knowledge that they alone (or their properly accredited representative) can gain access
to the safe. Freedom from anxiety, ever present when such documents are kept in the house, is a great relief. We have a long waiting
list of applicants for safes, and it is our intention to enlarge the accommodation as early as circumstances permit.
The 1947 Report
stated that 5,888 additional Safes to meet public demand have recently been installed, making a total of 10,528. Present rentals range
from 7/6 to £1 10s 0d per annum, according to the size of Safe. During the year, access to renters has been given on 12,877 occasions.The same report showed a charge under Furniture and Equipment of £16,780 for the Safe Deposit Extension.
The 1946 Accounts (dated
June 1946) reported: Mr J P Hilton, CBE, who was General Manager of the Bank from 1919, and also Manager of the Birmingham Corporation
Savings Bank from 1916-1919, retired on the 24th March last on reaching the age limit. He was a great pioneer and laboured indefatigably
from 1916 to build up the "Citizens' own Bank." How well he succeeded can be judged from the Bank's flourishing condition to-day.
A presentation was made to Mr Hilton by the Committee to mark the occasion.
The position at March 31st 1949,
therefore, was as follows:
Amount standing to the credit of Depositors: £83,368,124
Advances outstanding,
secured by Mortgage of Freehold and Leasehold Estate: £1,552,084
Reserve Fund (Balance of Income over Expenditure):
£574,994
Ratio of Reserves to the Liability to Depositors (£83,368,124) was 0.69%.
Number of Open Accounts:
626,722 (approximately 46% of the population in Birmingham and adjoining areas)