1219: Chapter 204: Unsung Hero_2 1219: Chapter 204: Unsung Hero_2 Perhaps soon, the total financial revenue will breakthrough the 30 million mark.
The financial revenue of the Kingdom in the future will likely stabilize between 40 and 50 million gold coins!”
Hudson responded with a chuckle.
Without a doubt, the financial revenue he referred to includes total revenue, not just cash inco.
Normally, the financial revenue of a feudal dynasty does not change significantly.
The increase in Alpha Kingdom’s financial revenue primarily stems from the expansion of the Kingdom’s territory.
By looking at the map, it is evident that the Kingdom’s territory has nearly doubled compared to ten years ago, naturally raising the ceiling of financial revenue.
The Kingdom Governnt is poor, mainly because the Near East Seven Provinces are currently in a tax-exemption period, and the Seven Northern Provinces are also enjoying tax reductions.
The six provinces that ca as a dowry from the Queen are currently under developnt and are also not taxed.
Although the inco has not increased significantly, the expenditures have surged.
Among them, military expenses in the Near East Region and construction costs for the official roads along the way are significant.
With more than 20 million in financial revenue, yet bearing obligations ant for 40 to 50 million in inco, it is difficult for the governnt not to be impoverished.
If the governnt weren’t so poor, the high echelons of the Kingdom would not have entrusted the Three Kingdoms in the Central Continent with the crucial task of mobilizing strategic materials.
“Thanks for the reminder, Marshal Hudson, but this isn’t the topic of focus today.
Compared to your country’s financial revenue, I think everyone is more interested in the current operational state of the Near East Developnt Bank!”
Count Powell responded unflinchingly, as if the inappropriate taphor ntioned earlier had never happened.
“Apologies, Your Excellency the Count.
In order to protect our custors’ privacy, it’s impossible to disclose the bank’s detailed accounts.
These economic data are not rely business-related; they are also tied to politics.
Once the data are leaked, it would inevitably cause huge losses to the Kingdom!”
Hudson categorically refused.
Although the Continent of Aslante has not yet entered the information age, a lot can be inferred through these economic data.
The Near East Developnt Bank has been able to develop smoothly primarily because the importance of the bank hasn’t been realized by all parties; everyone simply thinks of it as a profitable business.
It’s rely about making money, and with Hudson’s status, by aligning a group of interested parties, he naturally can cover it.
If any event makes everyone realize that the bank can control the economic lifeline, then everything will change.
Even if the Near East Developnt Bank survives, its shares will have to be redistributed, and Hudson won’t be able to fully control the bank’s operations.
After a vigorous verbal exchange, Hudson displayed his ability to ‘debate with scholars’, brilliantly bamboozling the representatives.
Of course, half of the effect was due to his status alone, and the other half was due to human greed.
Compared to the other shareholder representatives, Hudson’s status was undoubtedly the highest at the scene, overpowering everyone with his presence.
Perhaps the background investors behind these shareholders have statuses not inferior to Hudson, so even higher, but they couldn’t co personally!
The montum that was hard to gather was disrupted right from the start of negotiations by Hudson, followed by another wave of temptations, which everyone truly couldn’t withstand.
According to the bank developnt plan Hudson presented, once the Near East Developnt Bank matures, ten million gold coins will be distributed in cash dividends annually.
Such a generous return, how could the group of shareholder representatives resist?
Profitable industries are commonly seen, but it might be impossible to find another industry across the Continent that can accommodate such massive investnt and yield such a rich return.
“Painting the pie”, is also a skill.
Looking purely at the developnt trajectory of the Near East Developnt Bank, it really could distribute ten million gold coins in dividends annually after reaching maturity.
However, this is based on the premise that the economy of the Northern Continent continues to grow rapidly, clients can repay loans on ti, and the Different Races stay in line.
From an investor’s standpoint, this is a gamble.
But the previous financing has already placed the bet, and it’s too late to withdraw now.
Fire-sale of shares would definitely find buyers, but given the bank’s high valuation, who would want to take such a loss?
A company that can consistently distribute millions in dividends annually after three years surely has a valuation of one billion without any issues, even undervalued.
But currently, it is internal financing, talking about valuations holds no aning.
The only thing everyone could do is to reduce the amount financed to minimize investnt risk.
The financing amount was cut from twenty million to ten million, a definite slice by half, yet Hudson still smiled happily.
It seems like adding over five million in cash flow doesn’t an much to the current Near East Developnt Bank, but in reality, it significantly increases the resistance to risk.
Unlike a normal comrcial bank, the greatest risk for the Near East Developnt Bank isn’t depositor runs, but rather the issue of too many Gold Tickets.
In na, it facilitates transactions, but in reality, it’s like printing money.
The difference is that these disguised bills are not backed by national credit.
If the bank’s reputation is high enough, the value of the Gold Tickets can be stable, and they could be considered as currency.
Currently, the loans distributed by the bank are essentially a series of numbers on Magic Crystal Cards.
After receiving a loan, one cannot imdiately withdraw cash.
To transact with the outside world, it must also be conducted inside the bank, proving the funds haven’t been misappropriated.
The reason is readily available—regulating fund safety!
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