This increase should be gratifying to you, as according to the Government Returns, total deposits of all Canadian chartered Banks as of December 31st, 1926, show an increase of less than 2% during the year. The assets now aggregate $90,439,637.83. These assets have been carefully inspected by the Bank's own officials as well as by our Auditors. They are entered on the statement at a conservative valuation. Of these assets, $17,936,631 represent cash, cheques and monies due by other Banks, $25,871,489 represent Canadian and Provincial Government Bonds, railway and other bonds, debentures and other stocks, and call and short loans, making a total of $43,808,121 of immediately available assets, which is an increase of $2,359,266 over last year. Another feature worthy of note is the increase of nearly $1,250,000 in the current loans-a satisfactory development which we hope will be accentuated during the coming year. There is a further increase of $1,945,000 in the call and short loans. These latter advances are secured by marketable bonds and stocks with adequate margins. This new business has been taken care of by increased deposits and reducing our holdings of Government and Municipal Securities. We continue to receive our full share of the business of the various municipal corporations of the country. Loans of this class show an increase of $219,715. It is gratifying to report a reduction of $125,402 in the non-current loans during the year. Provision has been made for any possible loss under this head. Bank Premises Account, amounting to $3,712,934, reveals a reduction of $31,842 during the year. These properties are a valuable asset and are on the books at a conservative valuation. With reference to matters not directly concerned with ourselves, a very important financial event of the year just ended was the return of Canada to the Gold Standard on 1st July last. This action resulted, not as some feared, in the depletion of the country's stock of gold, but rather in an addition to the substantial amount then held, till the ratio of gold to Dominion Notes in circulation at the close of the year stood at over 60%. You will, no doubt, be interested in a brief review of two of our major industries, viz., Agriculture and Mining, on which our country's prosperity so largely depends. While the figures of Canadian basic industries continue to increase substantially, agriculture still leads the list. The value of the field crops for 1926 was $1,131,241,000, and which is the third successive year Canada has harvested profitable crops. The past year was not up to the average for the Ontario farmer, but the purchasing power of the Prairie farmer, in spite of the inclement harvesting weather, was greater than last year, owing to better prices for products generally. It is interesting to note in this connection the steady progress in diversified farming in these Provinces, illustrating the rapidly diminishing dependence of Western Canada on wheat alone. The value of Dairying, Eggs, Poultry, Live Stock, etc., each year reaches higher figures, ensuring more stable conditions. The influence exerted by Canada's mines on the country's expansion is increasingly great. The production value in 1886 was $10,200,000. In 1926 the total value of Canada's mineral production rose to $242,886,000, an increase over 1925 of 7.1-10%. Developments which are taking place in widely separated parts of the country promise even greater results in the near future. The value of the production in Northern Ontario-to mention only silver, nickel, gold and copper-since the first discovery to the end of 1926, has amounted to $770,000,000. Ontario's mineral output, metallic and non-metallic, for 1926 alone was $87,000,000. With the four primary sources of wealth-Agriculture, Mining, Lumbering and Fishing-functioning in a healthy manner, sound commercial expansion should naturally follow. It is fitting, and indeed a pleasure to me, in closing, to acknowledge the loyal support accorded me by my immediate associates, and also the willing and competent work of the staff generally, without whose conscientious efforts, it is needless to say, the satisfactory results of the year, as shown in the Statement, could not have been attained. Head Office, Toronto, Ontario N.'L. MCLEOD, General Manager G. N. BROWN AND N. C. STEPHENS, Assistant General Managers Balance brought forward, February 1st, 1926. 207,892.06 821,886.71 $1,029,778.77 144,702.00 144,702.00 144,702.00 144,702.00 48,234.00 50,000.00 35.000.00 317,736.77 $1,029,778.77 Balances due to Banks and Banking Correspondents elsewhere than in 72,148,588.13 1,017,644.17 97,338.20 2,433,256.34 483,460.63 244,404.09 144,702.00 977.50 4,823,400.00 2,900,000.00 317,736.77 $90,439,637.83 Deposits in the Central Gold Reserves. Deposit with the Minister for the purposes of the Circulation Fund. Notes of other Banks.. United States and other Foreign Currencies. Cheques on other Banks.. Balances due by Banks and Banking Correspondents elsewhere than in Call and Short (not exceeding thirty days) Loans in Canada on Bonds, Debentures and Stocks or other Securities of a sufficient marketable value to cover. Loans to Cities, Towns, Municipalities and School Districts. Liabilities of Customers under Letters of Credit as per contra.. 518,153.81 8,530,917.00 1,400,000.00 250,000,00 509,248.00 47.492.67 5,795,556.19 885,264.07 $17,936,631.74 16,042,651.21 9,828,838.16 We have examined the books and accounts of The Standard Bank of Canada at its Head Office, for the year ended January 31st, 1927, and have been furnished with certified returns from the branches. We have obtained all the information and explanations we have required, and in our opinion all transactions of the Bank which have come under our notice have been within the powers of the Bank. The Bank's investments and cash on hand at its chief office and certain of its principal branches, were verified by us as at January 31st, 1927. We certify that, in our opinion, the above general statement of Liabilities and Assets at January 31st, 1927, discloses the true condition of the Bank, and is in accordance with the books of the Bank. Toronto, February, 16th, 1927 D. McK. MCCLELLAND, F.C.A., of Price, Waterhouse & Co. A. B. SHEPHERD, C.A., of Peat, Marwick, Mitchell & Co. } Auditors ANNUAL STATEMENT OF THE SUN LIFE ASSURANCE COMPANY OF CANADA Directors' Annual Report for the Year 1926 FOR THE YEAR 1926 Your Directors present for your approval the Company's fifty-sixth Annual Report. The operations during the past year have resulted in substantial advances in all departments. The new policies paid for numbered 69,265 for a net amount of $265,889,546.26. This is an increase of $72,412,489.00 over the previous year, and almost double the figures of two years ago. The assurances in force, after deduction of re-assurances, now stand at $1,256,490,115.56, an increase of $235,393,013.62, or over twenty-three per cent. Policies in force number 483,334. In addition, certificates of assurance are held by 72,746 employees of firms under the group plan, an advance of 29,991. Policies and group certificates now outstanding thus aggregate well in excess of half a million. The business of the Cleveland Life Insurance Company has been acquired under a re-assurance agreement. We are favoured in that several of the Directors of that Company continue with us as a local Advisory Board, while its officers and representatives form a valuable addition to our ranks. We have also taken over a section of the business of another company. The total amount of assurances assumed under these arrangements was $55,622,244.00. To all the holders of these policies we extend a cordial welcome. The total net income increased by $9,825,493.21 to $78,972,906.39. Payments to policyholders and beneficiaries in respect of death claims, matured endowments, profits, etc., amounted to $38,576,463.33, bringing the total so paid since organization to $257,816,174.26. The figures relating to the resources and earning power are equally satisfactory. Assets now total $345,251,714.66, an increase of $42,195,568.83. The high quality and profitable character of our investments have again been demonstrated. As a result of continued reduction in prevailing rates of interest, and of satisfactory industrial conditions, there has been a further rise in the market values of our long term bonds and of our preferred and other stocks. The appraisal of our securities made by the Government Insurance Department shows that the excess of market values over cost has increased during the year by $6,894,266.26. In addition, the sum of $1,729,364.52 has been realized as net profit from the redemption or sale of municipal debentures and other securities which had risen to high premiums. The rate of interest earned on the mean invested assets has also risen to the remarkable figure of 6.69 per cent. as the result of substantial dividend increases, bonuses, and stock privileges received in connection with many of our holdings. The quality of the investments listed in the assets may be judged from the fact that on 99.55 per cent, of the bonds and on 99.71 per cent. of the preferred stocks, not one dollar of interest or dividend is in arrear for even one day. On our common stocks the dividends now being received are greatly in excess of the dividends payable on the same stocks at time of purchase. The total surplus earned during the year amounted to $20,457,077.28. From this the following appropriations have been made: The sum of $2,000,000 has been deducted from the official valuation of our securities to provide for possible fluctuations in market values. This raises the amount set aside for this purpose to $5,000,000. In other words, the value at which our securities are carried in the balance sheet is $5,000,000 less than the appraisal made by the Government authorities. The account to provide for unforeseen contingencies has been increased by $1,000,000, bringing the total under this heading to $11,000,000. The book value of our Head Office building has been written down by a further sum of $250,000, though it certainly could not be replaced at even its original cost. An additional amount of $400,000 has been set aside to provide for greater longevity of annuitants. The total held under this heading, in excess of Government requirements, is now $1,500,000. The reserves on the newly acquired business of the Cleveland Life, and on other re-assured policies, have been raised to the same high standard as that used for the valuation of liabilities under our own contracts. To our policyholders, profits have been paid or allotted during the year to the amount of $9,235,526.80. After making these deductions and allocations an addition of $5,371,564.56 has been made to the undivided profits. The surplus over all liabilities, contingency accounts and capital stock, now stands at $34,011,565.25. For six years in succession we have increased the profits to participating policyholders. During this period our profit scale has been doubled. While the assurances in force have multiplied two and a half times since 1920 the amount paid or allotted as profits to policyholders has multiplied five and a half times. We are gratified to announce, for the seventh consecutive time, a further increase in the scale of profits to be distributed to our policyholders in the ensuing year. |