Reserve Bank of Australia Annual Report – 1978 The Bank's Accounts

The Financial Statements this year show an increase of $569 million to $8,679 million in the balance sheet totals. Factors influencing changes in the main items have been commented on in earlier parts of the Report; one substantial item was a change in the basis of valuing gold. The book value gains from the changed method of valuation are reflected in the gold component of the item “Gold and foreign exchange”, and in the Bank's reserves. There was a decrease in loans, advances and bills discounted, and the unfunded adjustments arising from fluctuations in exchange rates were cleared. A rise in Australian notes on issue was more than offset by a reduction in the Statutory Reserve Deposits of trading banks.

Aggregate operating earnings in 1977/78 were $189 million, some $8 million higher than in 1976/77. The largest increase in income items was in interest received and accrued on Australian government securities, which rose by $43 million to $262 million; the largest increase in outgo items was in interest on deposit liabilities (including those denominated in foreign currencies) which rose by $12 million to $178 million. Net exchange valuation gains of $128 million were allocated in the first place to clearing past exchange losses of $53 million, with the balance of the gains being transferred to reserves.

The aggregate net profits of $185.5 million determined in terms of Section 78 of the Reserve Bank Act were appropriated, $182.9 million to the Commonwealth, $1.3 million to the Rural Credits Department Reserve Fund, and $1.3 million to the Rural Credits Development Fund.