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Chapter 1217 - 1217 203 The Most Profitable Business Model_3

1217: Chapter 203: The Most Profitable Business Model_3 1217: Chapter 203: The Most Profitable Business Model_3 According to past practice, once money enters the bank, at least one-third of the cash circulates through different Magic Crystal Cards.

Even when it comes to withdrawals, nearly one-fifth of people choose Gold Tickets.

Especially customers with bulk commodity transactions, who clearly prefer to use Gold Tickets.

For safety reasons, some customers even request that the Gold Tickets be named.

Even if others steal the Gold Tickets, they cannot redeem them, somewhat resembling the early form of checks.

In this context, though the Near East Development Bank’s profits have skyrocketed on paper, they do not dare to issue even a single gold coin as dividends.

This has caused the shareholders to have a great grievance towards Hudson.

The books keep showing profits, but where is the money earned?

Who has seen it?

But it’s too late for regrets; when they invested, they were ancestors, now wanting to get out, they’ve become grandchildren.

The only consolation for the shareholders is: the books truly show massive profits.

If everyone accepts dividends in Gold Tickets and does not convert to cash to leave the venue shortly, Hudson could immediately give out generous dividends.

The time has come for the annual shareholders’ meeting of the bank.

Unlike in previous years, this time the Near East Development Bank has an additional 80 million gold coins on its books as a far-off loan, which has greatly increased the shareholders’ resentment.

80 million gold coins is not the same as 8,000 gold coins; this number is substantial anywhere on the Continent.

Even with the bank’s earning capabilities, it would take several years to earn it back.

In the event of an unforeseeable incident in the Moxi Duchy resulting in the loan not being recoverable, it would be a huge loss.

“Duke, the shareholders have entered the drawing room, and by their looks, they seem to have ill intentions!”

Rudolf said anxiously.

As glamorous as he was in the past days, now he is just as disheveled.

Fraudulent accounts can’t be revealed, and now he has to avoid the shareholders by taking detours.

“Don’t worry, they’ve invested so much in the Near East Development Bank, they are reluctant to let go.

Even if their resentment is great, they won’t flip the table.

If they actually did that, it would just be contributing to the development of the Kingdom!

Go ahead and deal with them for now, I’ll be there shortly.”

Hudson said with a chuckle.

If the bank were to go bankrupt, the worst affected would still be those minor shareholders.

As the head of the bank, he had already recouped his investment.

For instance: creating fraudulent accounts for Moxi People.

These commission incomes are illicit, so Hudson had to grudgingly pocket the money himself.

Or take, for instance: bank operational costs.

Whether it’s employees, premises, or the allocation of funds for carrying cash between branches, it’s all handled by Hudson.

Since it’s a business, there must be profits.

There are many more similar maneuvers; it seems like this major shareholder and everyone else are in the same boat, not having withdrawn a single copper coin from the bank’s accounts, while in reality, he has already made a fortune.

Frankly speaking, Hudson has treated the shareholders quite fairly.

Although he has made money, the bank has earned even more!

With annual net profits of millions of gold coins and maintaining a double-digit high growth rate, it’s a true quality stock.

If this trend continues, once the network deployment in the Moxi Duchy is completed, it’s only a matter of days before the bank’s profits break 10 million.

Using “as rich as a nation” to describe it isn’t an exaggeration at all!

The only regret is that the Near East Development Bank is only making money on paper; due to insufficient deposit amounts, it simply cannot distribute cash dividends, and shareholders cannot enjoy the dividends of the bank’s growth.

For the Kingdom’s shareholders, well, although they haven’t received dividends, they have obtained low-interest loans.

Plus, they didn’t invest much capital; most of it was through resource entry, and their returns are already considered good.

The real tragedy still lies with the major trade associations, who not only haven’t seen a penny come back, but their copied homework has also failed to spread due to political factors.

The local banks that can only offer savings and loans can only be considered money shops.

Although they are well managed and can make a profit, the profit margin is not as high as everyone expected.

The scale is not big enough, the funds cannot circulate internally, and they can hardly leverage much.

Near East Development Bank lends using depositors’ money, but they are lending their own money, and their profitability cannot compare.

…

At the shareholders’ meeting, Rudolf was already being cursed mercilessly by a group of shareholder representatives.

A call for secrecy on the one hand, and an inconvenience to disclose on the other, this pissed everyone off.

As shareholders of the bank, they don’t even have the right to know.

What if someone runs away with the money?

Wouldn’t they be the last to know?

“Quiet.

Duke Hudson has arrived!”

The guards’ reprimand quelled the arguing at the meeting.

All the shareholder representatives waited for Hudson to give everyone an explanation.

“So, everyone is quite angry!

But I think it’s entirely unnecessary; let’s just talk it out.

I heard your disputes from outside.

Everyone is concerned about the operation of the bank, you can be completely assured about that.

Near East Development Bank was founded three years ago, and everyone has been shareholders for two and a half years.

The bank’s net assets grew from 9 million gold coins at the time of your investment to nearly 30 million gold coins now.

This rate of growth, I believe everyone should be satisfied with.

What’s worrisome now is simply why the bank isn’t distributing dividends, and about that 80 million loan from the Moxi Duchy.

Let me make it clear, the loan to Moxi Duchy is a political loan, mainly considered for political reasons.

Many of you must have tried and know how difficult it is to break open regional protection.

Why would others give you the market without proper benefits?

Not distributing dividends is even simpler; naturally, it is to earn more money!

Near East Development Bank is in a growth phase, and needs to reinvest the profits earned back into reproduction to secure the market in the shortest time possible.

Competitors have already emerged, and to maintain our leading edge, we must expand rapidly.

The bank is a heavy capital integrated industry, the larger the scale, the higher the profit, and the stronger the ability to withstand risks.

In no more than three years, we will be able to complete a comprehensive layout across the Northern Continent, and then we’ll enter the maturity phase…”

Hudson elaborated persuasively.

The maturity phase and all that is really a red herring.

Whether or not to distribute dividends really depends on the bank’s cash flow.

Undoubtedly, solving the cash flow problem within three years is almost impossible.

There’s no way; in front of interests, even false accounts can become real accounts.

Hudson also covets that 80 million interest-free loan recorded under Moxi Duchy!

Whether splitting it into loans to others, earning some interest, or keeping it for personal use, it can play a huge role.

No action has been taken because there isn’t that much money in the bank accounts.

However, as a manager, one can still think of solutions.

If he doesn’t need so much money for the time being, he could just shove previous loans into this.

As long as the accounts are balanced, by withdrawing this portion of interest income, no one would know.

Relatively speaking, this is still a gentle tactic.

If one isn’t careful about appearances, it’s also possible to directly write off bad debts.

Of course, that’s just a thought.

Such large-scale bad debt write-offs could torment Near East Development Bank into negative assets, and the shareholders would definitely erupt.

With many forces acting in unison, Hudson wouldn’t be able to mix in the continent anymore.