BALANCE SHEET OF THE BANK OF NEW ZEALAND AS AT 31st MARCH, 1938.

Appendix to the Journals of the House of Representatives, 1938 Session I, B-15

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1938. NEW ZEALAND.

BALANCE SHEET OF THE BANK OF NEW ZEALAND AS AT 31st MARCH, 1938.

Laid before both Houses of the General Assembly in pursuance of Section 24 of the Bank of New Zealand and Banking Amendment Act, 1898.

BANK OF NEW ZEALAND. Incorporated by Act of the General Assembly, 29th July, 1861. Authorized Capital. £ s. ct Preference A shares—soo,ooo at £1 .. .. .. ... . . . • 500,000 0 0 C long-term mortgage shares —468,750 at £1 .. .. . . .. .. 468,750 0 0 D long-term mortgage shares —937,500 at £1 .. .. ■■ 937,500 0 0 Preference B shares —1,375,000 at £1 .. . . • ■ .. •• 1,375,000 0 0 Ordinary shares —3,750,000 at £1 • ■ - • ■ ■ • ■ 3,750,000 0 0 £7,031,250 0 0 Subscribed Capital. £ s. <1. Preference A shares issued to the New Zealand Government .. .. . . 500,000 0 0 C long-term mortgage shares issued to the New Zealand Government .. .. 234,375 0 0 D long-term mortgage shares .. •• •• •• •• •• 468,750 0 0 Preference B shares issued to the New Zealand Government .. . . . . 1,375,000 0 0 Ordinary shares .. . • • • • • • • • • • • .. 3,750, 000 0 0 £6,328,125 0 0 Capital Paid up. £ s. d. Preference A shares issued to the New Zealand Government . . . . . . 500,000 0 0 C long-term mortgage shares issued to the New Zealand Government .. .. 234,375 0 0 D long-term mortgage shares .. •• •• •• •• •• 468,750 0 0 Preference B shares issued to the New Zealand Government . . .. .. 1,375,000 0 0 Ordinary shares .. •• •• •• •• 3,750,000 0 0 £ a. d. 6,328,125 0 0 Reserve Fund .. .. •• •• 3,575,000 0 0 Undivided profits . . • • • • • ■ • • 373,880 8 2 3,948,880 8 2 £10,277,005 8 2

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BANK OF NEW ZEALAND. Balance-sheet at 31st March, 1938. Liabilities. A sset-s. Capital— £ s. d. £ s. d. £ s. d. £ s. d. Preference A fully paid £1 shares issued to the New Zealand Coin, Reserve Bank notes, and deposits with bankers .. 6,103,579 8 8 Government .. .. .. .. .. 500,000 0 0 Government notes : Commonwealth, Fijian, and Samoan C long-term mortgage fully paid £1 shares issued to the Administration .. .. .. .. .. 150,867 10 0 New Zealand Government .. .. .. .. 234,375 0 0 Balances due by other banks .. .. .. .. 15,729 17 8 D long-term mortgage fully paid £1 shares .. .. 468,750 0 0 Money at call and short notice, Government securities and Preference B fully paid £1 shares issued to the New Zealand other securities in London .. .. .. .. 5,554,518 5 2 Government .. .. .. .. .. 1,375,000 0 0 Bills receivable in London and in transit .. .. 1,223,430 0 0 Ordinary fully paid £1 shares .. .. .. 3,750,000 0 0 New Zealand Government securities .. .. .. 5,390,347 0 7 6,328,125 0 0 Australian Government securities .. .. .. 2,239,634 3 3 Reserve Fund (invested in British Government securities) .. .. .. 3,575,000 0 0 Municipal and other local bodies'securities .. .. 275,575 17 10 Long-term mortgage debenture stock .. .. .. .. .. 607,050 0 0 Remittances in transit between branches .. .. 1,940,742 19 6 Notes in circulation .. .. .. .. .. .. .. 627 0 0 22,894,425 2 8 Deposits .. .. .. .. .. .. .. .. 34,731,532 4 7 Bills discounted .. .. .. .. .. .. .. 614,198 10 7 Balances due to other banks .. .. .. .. . . . . 51,402 13 4 Other advances and securities and debts due to the bank, after deducting proBills payable and other liabilities (including provision for contingencies) .. 4,582,270 16 1 vision for bad and doubtful debts .. .. .. .. .. 25,803,124 1 1 Reserve for taxes .. .. .. .. .. .. .. 426,000 0 0 Landed property, premises, &c. .. .. .. .. .. 733,937 16 1 London office acceptances under credits .. .. .. .. .. 61,263 19 4 Liabilities of customers for acceptances, per contra .. .. .. 61,263 19 4 Transfers from Long-term Mortgage Department .. .. .. .. 399,113 0 9 Long-term Mortgage Department .. .. .. .. .. 1,310,175 0 0 Balance of profit and loss .. .. .. .. .. .. 654,739 15 8 £51,417,124 9 9 £51,417,124 9 9 Long-term Mortgage Department. Long-term Mortgage Fund— £ s. d. £ s. d. Capital .. .. .. .. .. .. .. .. 703,125 0 0 Loans.. .. .. .. .. .. .. .. .. 911,06119 3 Debenture stock .. .. .. .. .. .. .. 607,050 0 0 Transfers to bank .. .. .. .. .. .. .. 399,113 0 9 £1,310,175 0 0 £1,310,175 0 0 This is the balance-sheet referred to in the certificate on attached Profit and Loss Statements marked " B."— A. Hempton, Chief Auditor.

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B. —15,

Profit and Loss. £ s. d. £ s. d. £ s d Dividend on C long-term mortgage shares .. .. .. 7,031 5 0 Balance at 31st March, 1937 .. .. .. .. . 645 749 4 9 Dividend on D long-term mortgage shares .. .. .. 17,578 2 6 Dividend on preference B shares .. .. . . .. 68,750 0 0 Dividend on ordinary share capital .. .. .. 187,500 0 0 280,859 7 6 Balance carried down .. .. .. .. .. .. .. 364,889 17 3 £645,749 4 9 Dividend paid 11th December, 1937— £ s. d. £ s. d. £645,749 4 9 Dividend on preference A shares .. .. .. .. 50,000 0 0 £ ~ T Interim dividend on C long-term mortgage shares .. .. 7,031 5 0 Balance brought down .. .. 364 889 17 3 Interim dividend on D long-term mortgage shares .. .. 17,578 2 6 Profits for year ended 31st March, 1938, including recoveries, and Interim dividend on preference B shares .. .. .. 31,250 0 0 after fiayment of aiid provision for all interest due and accrued Interim dividend on ordinary shares .. .. .. 187,500 0 0 _on deposits, provision for bad and doubtful debts, depreciation , . . J, J 293, 359 7 6 of furniture, and for the annual donation to the Provident Fund Balance, being profit for the year .. .. .. 583,209 5 1] are . . .. .. .. ..£1 672 821 6 6 To which has to be added amount brought forward from last year 364,889 17 3' ' j g72 8 ,:> 1 6 G Less— 948,099 3 2 Salaries and allowances at Head Office and 234 £ s. d. Less dividend paid, as above .. .. .. .. 293,359 7 6 branches and agencies .. .. 563,986 16 7 654,739 15 8 Directors' remuneration, including London Board and local directors in Australia .. 9,132 0 2 General expenses, including rent, stationery, telegrams, postages, travelling, repairs to premises, &c. .. .. .. 134,141 6 9 Audit Expenses Account .. .. 3,010 0 0 Rates and taxes .. .. .. 379,34117 1 1,089,612 0 7 583,209 5 11 £948,099 3 2 £948,099 3 2

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BANK OF NEW ZEALAND— continued. Reserve Fund. £ s. d. £ s. d. Balance .. .. .. .. .. .. .. .. 3,575,000 0 0 Balance per last statement .. .. .. .. .. .. 3,575,000 0 0 £3,575,000 0 0 £3,575,000 0 0 Note.—London assets are shown in this balance-sheet in sterling, and no provision has been made for their appreciation in their relation to New Zealand currency apart from an adjustment for London exchange transactions since Ist April, 1934. CERTIFICATES. We hereby certify that, having carefully examined the foregoing balance-sheet (marked " A ") and statements, we are satisfied that they have been correctly compiled from the books and accounts of the bank, and that the balance-sheet is a full and fair balance-sheet, properly drawn up, and exhibits a true and correct view of the state of the bank's affairs at the date thereof. Dated this 18th day of May, 1938. F. W. Dawson, General Manager. A. W. Hall, Accountant. I, Arthur Lewis Hempton, the Chief Auditor of the Bank of New Zealand, do hereby certify— 1. That, having carefully examined the foregoing balance-sheet and statements, I am satisfied that they have been correctly compiled from the books and accounts of the bank. 2. That I am also satisfied that the said balance-sheet is a full and fair balance-sheet, properly drawn up, and exhibits a true and correct view of the state of the bank's affairs at the date thereof. 3. That I have verified so much of the cash, investments, securities, and assets of the bank as at the date of the said balance-sheet were held at the Head Office, in Wellington, and have had access t> certified returns of so much thereof as were then held at the various branches and agencies of the bank, or were then in transit. Dated this 20th day of May, 1938. A. Hempton, Chief Auditor.

By Authority: E. V. Paul, Government Printer, Wellington.— 1938.

Approximate Cost of Pa-per.—Preparation, not given ; printing (460 copies), £5.

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