Reserve Bank of Australia Annual Report – 1966 Annual Accounts

The balance sheets of the various sections of the Reserve Bank as at 30th June, 1966, together with the Profit and Loss Appropriation Statement, appear on the following pages.

The Main Changes

The aggregate balance sheet shows that GOLD, AND BALANCES HELD ABROAD rose by $99 million and OTHER OVERSEAS SECURITIES fell by $105 million. These two items together comprise the Bank's holdings of gold and foreign exchange which fell by $6 million in 1965/66. Holdings of AUSTRALIAN NOTES AND COIN increased $14 million, mainly reflecting larger coin holdings associated with the changeover to decimal currency. AUSTRALIAN GOVERNMENT SECURITIES (INCLUDING TREASURY BILLS) held by the Bank decreased by $114 million; holdings of Treasury bills fell by $36 million and other Australian Government securities by $78 million. CHEQUES AND BILLS OF OTHER BANKS, mainly other bank cheques deposited by Reserve Bank customers and held pending clearance, were $17 million lower. LOANS, ADVANCES AND BILLS DISCOUNTED declined by $54 million, comprising a fall of $68 million in advances by Rural Credits Department to wheat and other rural marketing authorities and a rise of $14 million in advances and bills discounted for other Reserve Bank customers. BANK PREMISES increased by $7 million, reflecting continuation of the Bank's new building programme. BILLS RECEIVABLE AND REMITTANCES IN TRANSIT declined $10 million.

On the liabilities side, AUSTRALIAN NOTES ON ISSUE decreased by $27 million. DEPOSITS, BILLS PAYABLE AND ALL OTHER LIABILITIES fell by $157 million. The Central Banking Business balance sheet shows that STATUTORY RESERVE DEPOSIT ACCOUNTS OF TRADING BANKS fell by $183 million, mainly due to the reduction in the S.R.D. ratio from 13.8% to 9.4%. TERM LOAN FUND ACCOUNTS OF TRADING BANKS rose $2 million. Balances of the FARM DEVELOPMENT LOAN FUND ACCOUNTS OF TRADING BANKS (see page 20) established in April were $49.5 million at 30th June, 1966. OTHER DEPOSITS OF TRADING BANKS declined $22 million; DEPOSITS OF SAVINGS BANKS decreased $11 million. Other liabilities, which include deposits of Australian Governments and other Reserve Bank customers and provisions for contingencies, were $8 million higher.

Inter-departmental accounts — mainly advances by the Central Bank to the Rural Credits Department — amounting to $143 million have been offset in the aggregate balance sheet.

Profits

Net profits of the various sections of the Bank for the year ended 30th June, 1966, after deducting amounts written off bank premises and amounts provided for contingencies, were as follows:—

Of the net profits, $35,782,455 was paid to the Commonwealth of Australia, $4,598,140 to the Reserve Funds of the Bank and $598,139 to the Rural Credits Development Fund.

A comparison of the above figures with those for 1964/65 shows that net profit from Central Banking Business declined in 1965/66; the main factor contributing to the decrease was a reduction in income from a lower average level of London investments. Note Issue Department profit rose slightly, whilst a higher average level of advances outstanding during the year was responsible for the increase in net profit of the Rural Credits Department.