BANK OF NEW ZEALAND ANNUAL REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31st MARCH, 1950, AND BALANCE-SHEET AT THE 31st MARCH, 1950

Appendix to the Journals of the House of Representatives, 1950 Session I, B-15

B—ls

1950 NEW ZEALAND

BANK OF NEW ZEALAND ANNUAL REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31st MARCH, 1950, AND BALANCE-SHEET AT THE 31st MARCH, 1950

Presented to Both Houses of the General Assembly Pursuant to Section 15 of the Bank of New Zealand Act, 1945, and Section 24 of the Bank of New Zealand and Banking Amendment Act, 1898

To the Right Hon. the Minister of Finance. The Board of Directors presents hereunder the report on the operations of the Bank of New Zealand during the financial year ended 31st March, 1950, in accordance with section 15 of the Bank of New Zealand Act, 1945.

B—ls

Profit and Loss Account and Dividend The profits, after providing for expenses of management, and for all bad and doubtful debts, and other contingencies, and after making £ s. d. provision for the annual donation to the Provident Fund, are .. 403,660 7 5 To which has to be added : Balance brought forward from last year .. 432, 930 010 836,590 8 3 From which has been paid : £ s - d. Dividend on preference A shares .. .. 46,250 0 0 Interim dividend on C long-term mortgage shares 6,503 18 1 Interim dividend on D long-term mortgage shares 16,259 15 3 Interim dividend on preference B shares .. 18,750 0 0 Interim dividend on ordinary shares .. .. 112,500 0 0 200,263 13 4 Leaving available for distribution .. .. •• £636,326 14 11 This the Directors propose should be disposed of as follows : Dividend on C long-term mortgage shares at 6 per cent, per £ s. d. £ s. d. £ s. d. annum .. • • 7,031 5 0 *Keduced by Id. for every 13M. or part thereof .. 527 611 6,503 18 1 Dividend on D long-term mortgage shares at per cent, per annum .. .. 17,578 2 6 *Reduced by Id. for every 13id. or part thereof .. 1,318 7 3 16,259 15 3 Dividend on preference B shares (making £43,750 for the year) .. 25,000 0 0 Dividend at rate of 4 per cent, on ordinary shares (making £262,500 for the year, equal to 7 per cent.) .. .. - • 150,000 0 0 Leaving balance to be carried forward .. 438,563 1 7 6 £636,326 14 11 Such dividends to be paid in New Zealand currency. The gross profit for the year, less provision for contingencies, &c., amounted to .. £2,456,399 a decrease of £17,399 Expenses amounted to .. .. •• £2,052,739 a decrease of £21,079 Leaving net profit as above .. •. £403,660 an increase of £3,680 The gross profit for the year was lower than for the previous year on account of reductions in interest receipts due to the average level of overdrafts being lower and the repayment of Government securities and local-body debentures.

* Reduction on account of New Zealand social security charge in pursuance of section 9, Finance Act (No. 2), 1941.

2

B—ls

In view of the reduced interest receipts, the amount required for taxation was lower.Comparative figures for the past five years of gross profit, expenses, and net profit are as follows :

and for the same years the dissection of expenses and the total number of staff are :

The amount returned to the New Zealand Government by way of taxation and dividend in each of the last five years was

Balance-sheet Deposits; Fixed and Free (£83,826,003). —These show an increase of £6,127,225 for the year, the main fluctuations being an increase of £6,531,412 in free deposits from the public, an increase of £449,537 in fixed deposits, and a reduction in Government balances of £896,385. The following figures for the past five years show the fluctuations in our New Zealand deposits, advances, and investments, and the relationship of total advances and investments to deposits :

3

— Gross Profit. Expenses. Net Profit. £ £ £ 1946 2,099,046 1,704,967 394,079 1947 2,100,630 1,665,380 435,250 1948 2,236,477 1,806,681 429,796 1949 2,473,798 2,073,818 399,980 1950 2,456,399 2,052,739 403,660

Year to— Staff Salaries. Rates and Taxes. General. Total. 1 Total Number of Staff. £ £ £ £ 31st March, 1946 665,231 849,690 190,046 1,704,967 1,743 31st March, 1947 762,777 671,188 231,415 1,665,380 1,862 31st March, 1948 833,918 678,358 294,405 1,806,681 2,018 31st March, 1949 895,335 858,665 319,818 2,073,818 2,099 31st March, 1950 971,229 710,082 371,428 2,052,739 2,140

Twelve Months Ending—New Zealand Taxes Actually Paid in Year. Dividend Relative to Year. Total. £ £ £ 31st March, 1946 793,377 264,581 1,057,958 31st March, 1947 625,439 395,066 1,020,505 31st March, 1948 628,255 397,504 1,025,759 31st March, 1949 770,698 397,785 1,168,483 31st March, 1950 594,378 398,027 992,405

Total Advances Deposits. Advances. Investments. and Investments. New Zealand business only) £ £ £ £ 31st March, 1946 54,632,818 23,489,095 15,050,845 38,539,940 31st March, 1947 61,635,272 28,302,743 12,745,140 41,047,883 31st March, 1948 69,826,785 34,048,861 11,688,832 45,737,693 31st March, 1949 69,068,401 32,118,045 10,226,302 42,344,347 31st March, 1950 75,631,374 32,297,296 7,938,754 40,236,050

B—ls

These figures, which, as mentioned above, relate to our New Zealand business only, show deposits to have increased by approximately £21,000,000 since 1946, while the total of advances and investments in the same period shows an increase of under £2,000,000. The effect of the restrictions which the banks are subjected to as regards advances and investments can be clearly seen, and this is referred to again later in this report. Coin, Reserve Bank Notes, and Deposits with Bankers (£37,468,919) show an increase for the year of £7,166,134. Our balance with the Reserve Bank of New Zealand at £30,049,737 shows an increase of £7,172,279 and our holding of Reserve Bank notes at £5,157,109 is up £357,247. The following figures show that our surplus funds with the Reserve Bank have, over the past five years, more than doubled :

Balance at Reserve Bank

The surplus funds lying in the Reserve Bank earn nothing for the Bank of New Zealand, and were it not for the control exercised over bank operations by the Government a certain amount of this money would be used for investment purposes and a certain amount in advances to our customers. It is, of course, obvious that under the current account system which operates in New Zealand these deposits involve the Bank in expense for servicing them, and unless a fair percentage can be let out at interest the business becomes uneconomic. The percentage of our deposits which are in effect lying idle in our hands has moved as follows in the last few years, and the net result is a tendency for our net earnings to decrease :—- Percentage of Surplus at Reserve Bank to Total New Zealand Deposits 1946 .. ..21-60 1949 .. .. 26-75 1947 .. .. 22-70 1950 .. .. 33-22 1948 .. .. 19-03 Money at Call and Short Notice, Government Securities, and Other Securities, in London (£7,173,207). —This shows a decrease of £1,815,823, practically wholly in money at call. This'is largely offset by an increase in bills receivable in London and in transit, which at 31st March, 1950, stood at £2,345,192, against £1,230,698 the previous year. Bills receivable represent in the main documentary bills purchased which relate to produce exports from New Zealand such as wool, &c. With the higher prices for wool the relative bills receivable have naturally increased in amount. The moneys at call and short notice in London service the Bank's day-to-day operations. There are substantial commitments and liabilities against these funds and they are, of course, subject to rapid fluctuations. The Bank's Reserve Fund of £3,575,000 included in the figures under this heading is invested in British Government Securities. The total of our investments in London has not changed to any material extent during the year, but the fall in the market value of gilt edged has been substantial. This reduction was already provided for in our books.

4

Balance. Statutory Balance. Surplus. £ £ £ 31st March, 1946 15,274,493 3,473,619 11,800,874 31st March, 1947 17,861,055 3,863,955 13,997,100 31st March, 1948 17,577,822 4,288,748 13,289,074 31st March, 1949 22,877,458 4,396,881 18,480,577 31st March, 1950 30,049,737 4,922,236 25,127,501

B—ls

New Zealand Government Securities (£6,998,267). —These show a reduction of £2,192,809, accounted for by the redemption of stock which matured during the year. The New Zealand Government's policy of not permitting the trading hanks to invest in Government loans still applies, and the effect can be clearly seen in comparative figures previously quoted in this report. The reduction in these securities since the peak was reached in 1944 is £10,422,427. Australian Government Securities (£609,894) show a decrease for the year of £164,597, which is accounted for by the sale of £200,000 Commonwealth stock and by repayments at maturity and variation of Australian funds in relation to New Zealand currency. Fiji Government Securities (£lsB,2sl).—There has been no variation during' the year. Municipal and Other Local-body Securities (£1,070,695). —A decrease of £94,740, due mainly to repayments at maturity. As mentioned in previous years, in accordance with Government policy, the trading banks are not at present investing in local-body loans. Other Advances and Securities and Debts Due to the Bank (after deducting £ provision for bad and doubtful debts) .. .. .. .. 36,425,718 Bills Discounted .. .. .. .. .. .. 1,122,169 £37,547,887 These items show an increase on last year's figures of £949,784 and £251,857 respectively, a total increase of £1,201,641 ; but as previously mentioned in this report, there was a lower level of advances throughout the year. The increase in bills discounted is casual, due to a temporary-increase in import bills. Advances to customers in New Zealand at 31st March, 1950, show a very small increase of £104,924 compared with figures at the same date last year. The percentage distribution of our advances in New Zealand amongst the various types of business is shown in the following table : —-

The downward trend in advances to farmers which has been noted in previous reports has continued over the last twelve months. Not only is this due to the higher prices obtained for produce, particularly wool, but also to the Reserve Bank policy of advance control, which has restricted the customary functions of the banks in financing purchasers into' properties and providing accommodation for capital expenditure on farms. As a result,-the business of our rural branches, established to provide an essential service to the farming community, is being adversely affected.

5

— 1946. 1947. 1948. 1949. 1950. . Per Per Per Per Per Cent. Cent. Cent. Cent. Cent. Farmers 34-11 25-47 25.-58 22-29 Industries allied to primary .production 14-72 15-75 14-47 18-01 19-34 Other manufacturing and productive industries 10-31 10-15 14-04 16-12 15-55 Merchants, wholesalers 4-24 8-15 11-78 7-08. • 9-23 Retailers .. 5-19 6-28 8-68 7-53 7-80 Private individuals 10-04 9-05 8-35 8-30 8-92 All others 16-40 16-51 17-21 17-38 16-87

B—ls

The continuation of a high level of imports, accompanied in some cases by increased prices, has necessitated a larger volume of advances to merchants and wholesalers. The imports are, in general, readily absorbed, and there does not appear to be undue overstocking. £ Long-term Mortgage Department . .. .. .. .. 703,125 Transfers to Long-term Mortgage Department .. .. 167,084 870,209 This Department has increased its advances during the year by £75,382, and is now using £167,084 transferred from the ordinary banking funds in terms of the relative statutory provision. The increase is mainly accounted for by loans under local-body housing schemes arranged in recent years, as mentioned in previous reports. Cubbent Accounts The number of our customers continues to increase steadily, as shown by the following figures, in which the number at 31st March each year is reduced to an index figure based on the year 1946 : 1946 .. .. .. 100 1949 .. .. .. 117 1947 .. .. .. 107 1950 .. .. .. 123 1948 .. .. ..113 As this rate of growth is greater than that of the population, it indicates that the community is making greater use of the banking system and a greater proportion now keep bank accounts than formerly. The servicing of this increasing business calls for more clerical labour and more office space of course, and with the limitation of our avenues for using money it isinevitable that the Bank does not receive an adequate return for the increased business in present circumstances. Apart from this aspect, which it is hoped is temporary, the growth of the Bank's connection is a source of satisfaction. There have been no alterations in bank interest-rates or service charges to the public. Devaluation of Sterling The devaluation of sterling in September last did not affect our position to any material extent, as New Zealand followed sterling, and in terms of the indemnity given by the Reserve Bank of New Zealand to the trading banks, whereby that Bank coversany loss or takes any profit on alteration in the basic rates of exchange on free funds held overseas by the banks, the profit on our holdings of United States of America and Canadian dollars was paid to the Reserve Bank of New Zealand. In anticipation of the devaluation the requests to us for forward exchange cover were heavy, but we were able to cover all requests where there were commitments by our customers in conformity with exchange control requirements. Rehabilitation Business The Bank continued to assist District Rehabilitation Committees in the work of rehabilitation of returned servicemen. Arrangements which were entered into with the State Advances Corporation whereby overdraft accommodation is granted to ex-servicemen where administration by the Bank is considered advantageous continue to work satisfactorily.

6

B—ls

Flood and Hail Damage Belief Repayments of advances granted under Government guarantee to sufferers from flood damage liave in most cases been satisfactorily maintained. In the remaining few cases, arrangements have been made for reductions to be postponed. Final clearance of the advances, however, is expected within a reasonable time. In all these cases the Bank has co-operated fully with the Government's officers in the affected areas, and the arrangements have worked smoothly and satisfactorily. Produce Department This Department continues to perform a useful service in assisting primary producers in the marketing of produce, whether for local sale or disposal overseas, and the services the Bank is able to offer are availed of and appreciated by wool-growers particularly. Quantities of all types of produce forwarded to London and elsewhere for sale on a consignment basis during the year were, on the whole, below pre-war average. There has, however, been a steady increase in the amount of wool shipped to London through the Bank, and we have regained the position previously held there as one of the largest importers of wool for the London market. The large bulk of the wool-clip is sold in New Zealand at the local auctions, which are very well supported by buyers, but a certain number of growers like to use the London market, and the bank has catered for this for many years and our organization is well established and experienced. Statistical figures are not readily available as to offerings and average realizations of New Zealand wools sold in London, but, in spite of the high prices ruling in New Zealand, the London market still carries a " spot premium." The Bank's Produce Circular, containing information on the market situation of a wide range of commodities, has a wide circulation amongst primary producers, merchants, and the business community generally. Australia Our Australian business has been very active and the demand for advances well maintained. Our branches at Sydney and Melbourne give very good service to our customers at these points and to our many customers from New Zealand and elsewhere who visit there. During the year we purchased a property adjoining our present Sydney premises. This will in due course enable us to provide for any expansion needed. Fiji and Samoa At Suva and Apia our businesses continue to increase satisfactorily. At both places prices for the principal exports continue at a very favourable level. London Our business continues to be very active and to show a satisfactory increase. This increase necessitated the acquisition of additional space in the building we occupy at No. 1 Queen Victoria Street, and the internal alterations are now nearing completion. This has already been a great help in dealing with our business and has enabled us to give our many New Zealand visitors better facilities. Our London Branch is very well equipped to deal with all business there for customers and visitors. We particularly welcome the opportunity to assist our New Zealand friends visiting England and the Continent, and we have- now complete arrangements for facilitating their travelling.

7

B—ls

Board of Directors We very much regret to record the death of Mr. John Dowgray, who wds first appointed a Director on sth April, 1937, and continued so until his death on 28th January, 1950. There has been no change in our local Directors in Sydney and Melbourne, but Mr. C. J. Holland-Martin was appointed to the London Board as from Ist April '1950 to take the place of the late Mr. Robert Mill. The Board desires to again place on record its appreciation of the services of our overseas Directors. Premises Owing to building control it is still not possible for. us to undertake the erection of new business premises and we have perforce had to abandon several new building projects despite the need for them, and we have therefore done what we could to provide the necessary increased office space where possible by internal alterations and additions. In order to relieve pressure in nearby .branches it has been necessary in some cases to open up additional branches and to acquire and remodel buildings. These methods of providing office accommodation are not always the most economical, but until the building position has eased there is no alternative. Steady progress is being made in overtaking arrears of maintenance work which accumulated during the war years, and most of our branches are now in reasonably good condition, subject to the necessity for complete rebuilding in some cases. Branches and Agencies During the year new branches were established in place of the existing agencies at Birkenhead, Auckland. Dominion Road, Auckland. Tirau. Kilbirnie, Wellington. The following agencies were opened : Adelaide Road, Wellington (Vivian Street Branch) ; Broadwood (Kohukohu) ; Coroglen (Thames) ; Devon Street East (New Plymouth) ; Johnsonville (Wellington) ; Kaiwaka (Wellsford) ; Massey Agricultural College (Palmerston North) ; Mount Roskill (Symonds Street, Auckland) ; Northcote (Birkenhead) ; Orewa (Auckland) ; Paekakariki (Wellington) ; St. Heliers (Auckland); Swanson (Henderson) ; Tawa Flat, (Wellington) ; , Wataroa (Hokitika) ; Whitianga (Thames) ; and the following agencies were reopened" Ellerslie (Newmarket);. ■ Rahotu (Opunake); • We now operate 147 branches and 138 agencies in New Zealand, and branches'at London Sydney, Melbourne, Suva, and Apia.

8

B—ls

The following figures show the number of New Zealand branches and agencies open at 31st March in each of the last five years :

The maintenance of our overseas banking connections receives constant attention, and we have world-wide agency relations with other banks which enable us to handle business in all countries. Our relations with our foreign correspondents are cordial and we have exchanged visits with many of them, particularly in England, Australia, Canada, and the United States of America. Tourist Business The agencies maintained by the Bank at the airports and wharves at principal arrival ports have proved of real value to travellers arriving in New Zealand. This service is arranged so as to fit in with the arrival times of the various aircraft and vessels. We regard the development of tourist business in New Zealand as very important to the economy of the Dominion, and there is no doubt that it is very desirable that the traveller should be able to conveniently arrange his cash needs immediately on arrival. Our offices are well equipped to provide for the travel needs of our customers, especially those proceeding abroad, and are rendering useful service in this connection. At Auckland, Wellington, London, and Sydney particular attention is devoted to this branch of our activities. Staff During the past year the staff has shown a net increase of 41 compared with the previous year, bringing the total number to 2,140 in all. The steady increase in the Bank's business requires greater numbers of staff each year, and with the present shortage of labour there is some difficulty in filling our needs, but on the whole we have been able to obtain, sufficient new entrants to keep our offices reasonably well staffed. The calls on the staff for compulsory military training will, of course, accentuate our difficulties, but we have no doubt we will be able to cope with them. The increasing number of staff has in a number of branches fully taxed available working space and made conditions less convenient and comfortable than we care for. Every effort is being made to rectify the position, consonant with building permits being made available to enable the necessary structural alterations to the various premises to be carried out. The welfare and comfort of the staff continue to receive constant attention. Mechanical book-keeping aids are being used increasingly, and we would proceed more rapidly with this but for the difficulty of importing the necessary machines. The staff maintains its high reputation for rendering loyal and efficient service both to the Bank's customers and the public generally, and our Managers and other officers are energetic in promoting the growth of the business. The Board wishes to place on record once again its high appreciation of the services of the whole staff.

9

' — I Branches. Agencies. Total. 31st March, 1946 135 79 214 31st March, 1947 136 116 252 31st March, 1948 140 118 258 31st March, 1949 143 124 267 31st March, 1950 147 138 285

B—ls

Conclusion The accompanying Balance-sheet again shows the Bank to be in a very strong and liquid position. The assets have been conservatively valued and full provision for possible bad debts has been made. The total assets now exceed £100,000,000, which indicates the growth of our business, fhis is an increase of over £28,000,000 in the last five years. The Bank is well equipped to meet its customers' requirements and give a complete banking service in all respects. For and on behalf of the Board of Directors, A. T. Donnelly, Chairman. Head Office, Bank of New Zealand, Wellington, 18th May, 1950.

10

B—ls

"A" BANK OF NEW ZEALAND Incorporated by Act of the General Assembly, 29th July, 1861 Authorized Capital £ s. d. Preference A shares —500,000 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—3,7so,ooo at £1 .. .. •• 3,750,000 0 0 £7,031,250 0 0 Subscribed Capital £ s. d. Preference A shares .. .. • • • • • - • • 500,000 0 0 C long-term mortgage shares .. .. • • ■ • • • 234,375 0 0 D long-term mortgage shares .. • • • • ■ • 4^8,750 0 0 Preference B shares .. .. • • • • • • 1 > 375,000 0 0 Ordinary shares .. •• •• •• •• •• 3,750,000 0 0 £6,328,125 0 0 Paid-up Capital £ s. d. Preference A shares .. .. • • • • • • • ■ 500,000 0 0 C long-term mortgage shares .. .. . • • • • • 234,375 0 0 D long-term mortgage shares .. . • • • • • 4^8,750 0 0 Preference B shares .. .. •• •• •• •• 1,375,000 0 0 Ordinary shares . • • • • • • • • • .. 3,750,000 0 0 6,328,125 0 0 £ s. d. Beserve Fund .. • • • • .. 3,575,000 0 0 Undivided profits .. .. • • • • 438,563 1 7 * 4,013,563 1 7 £10,341,688 1 7

11

B—ls

"A "— continued BANK OF NEW ZEALAND Balance-sheet at 31st March, 1950 Liabilities £ s. d. £ s. d. Assets £ s. d. £ s. d. Capital—• Coin, Reserve Bank notes, and Preference A fully-paid £1 shares 500,000 0 0 deposits with bankers.. .. 37,468,919 6 2 C long-term mortgage fully-paid Government notes: Commonwealth, £1 shares .. .. .. 234,375 0 0 Fijian, and SamoanAdministration 291,899 16 9 D long-term mortgage fully-paid Balances due by other banks .. 1,319,060 13 6 £1 shares .. .. .. 468,750 0 0 Money at call and short notice, Preference B fully-paid £1 shares 1,375,000 0 0 Government securities, and other Ordinary fully-paid £1 shares .. 3,750,000 0 0 Securities in London .. .. 7,173,206 10 3 6,328,125 0 0 Bills receivable in London and in Reserve Fund (invested in British transit .. .. .. 2,345,192 2 10 Government securities) .. .. 3,575,000 0 0 New Zealand Government securities 6,998,267 9 11 Deposits .. .. .. .. 83,826,003 6 4 Australian Government securities 609,893 12 8 Balances due to other banks .. .. 49,567 6 2 Fijian Government securities .. 158,250 13 6 Bills payable and other liabilities Municipal and other local bodies' (including provision for contin- securities .. .. .. 1,070,694 15 3 gencies) .. .. .. .. 7,493, 396 14 0 Remittances in transit between Provision for taxes .. .. .. 520,000 0 0 branches .. .. .. 5,362,425 19 8 London Office acceptances under ( 62,797,811 0 6 credits .. .. .. .. 157,014 10 1 Bills discounted .. ... .. 1,122,169 0 3 Balance of profit and loss .. .. 636,326 14 11 Other advances and securities and debts due to the Bank, after deducting provision for bad and doubtful debts .. .. .. 36,425,717 15 2 Landed property, premises, &c. .. .. 1,212,512 3 2 Liabilities of customers for acceptances, per contra .. .. 157,014 10 1 I Long-term Mortgage Department .. 870,209 2 4 £102,585,433 11 6 £102,585,433 11 6 All assets and liabilities are expressed in New Zealand currency.

12

B—ls

Long-term Mortgage Department LO S^« MOrtg T I ' Und ". 70*.m 0 0 Loans .. *"0,209 * * Transfers from Bank .. .. •• •• 167,084 2 4 £870,209 2 4 £870,209 2 4 This is the Balance-sheet referred to in the certificate on attached Profit and Loss Statement marked " B."

13

B—ls

BANK OP NEW ZEALAND—continued " B " Profit and Loss £ s. d. £ s. d. £ g. d. Dividend on C long-term mortgage shares 6,503 18 1 Balance at 31st March 1949 .. .. .. 608,818 14 2 Dividend on D long-term mortgage shares 16,259 15 3 Dividend on preference B shares .. 21,875 0 0 £608,818 14 2 Dividend on ordinary shares .. .. 131,250 0 0 . 175,888 13 4 £ s. d. Balance carried down .. .. .. 432,930 0 10 Balance brought down .. .. .. .. 432,930 0 10 Profits for year ended 31st March, 1950, £ s. d. £6O8 ,818 14 2 including recoveries, and after payment of and provision for all interest due and Dividend paid December, 1949— £ s. d. £ s. d. accrued on deposits, provision for bad Dividend on preference A shares .. 46,250 0 0 and doubtful debts and other continInterim dividend on C long-term gencies and for the annual donation to mortgage shares .. .. 6,503 18 1 the Provident Fund are .. .. 2,456,399 3 2 Interim dividend on D long-term Less— £ s. d. mortgage shares .. .. 16,259 15 3 Salaries and AllowInterim dividend on preference B ances at Head shares .. .. .. 18,750 0 0 Office and 290 Interim dividend on ordinary shares .. 112,500 0 0 branches and 200,263 13 4 agencies .. 971,229 7 5 Balance, being profit for the year .. 403,660 7 5 Directors' reTo which has to be added amount brought muneration, forward from last year .. .. 432,930 0 10 including London Board and 836,590 8 3 local Directors Less dividend paid, as above .. 200,263 13 4 in Australia .. 9,495 4 4 636,326 14 11 General expenses, including rent, stationery, telegrams, postages, travelling, repairs to premises, depreciation, &c. .. 358,495 17 11 Audit Expenses Account .. 3,436 11 4 Rates and taxes.. 710,081 14 9 2,052,738 15 9 403,660 7 5 £836,590 8 3 £836,590 8 3

14

B—ls

Reserve I^uni) £ s. d. i £ 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 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 15th day of May, 1950. P. L. Poster, General Manager. D. Fairgray, Chief Accountant. I, David Firth Reid, the Chief Auditor of the Bank of New Zealand, do hereby certify— (1) That, having carefully examined the foregoing Balance-sheet (marked "A") 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 to 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 16th day of May, 1950. D. F. Reid, Chief Auditor.

By Authority: R. E. Owen, Government Printer, Wellington.— 1950.

Price 6d.]

Approximate Cost of Paper.—Preparation, not given ; printing (1,314 copies), £42 10s.

15