Reserve Bank of Australia Annual Report – 1978 Financial Statements Note 1 Aggregate operating earnings

Aggregate operating earnings in 1977/78 were $189.3 million, some $8.1 million higher than in 1976/77. The main income items were net earnings on overseas investments of $86.1 million ($128.9 million in 1976/77), interest received and accrued on Australian government securities of $261.8 million ($218.8 million) and on loans, advances and bills discounted of $71.9 million ($48.5 million). The main outgo items were interest on deposit liabilities of $178.2 million ($166.1 million) and other expenses $62.4 million ($57.7 million). Staff costs $47.7 million ($43.6 million) were the main component of these other expenses, which amounted to $20.3 million ($18.8 million) in the Note Issue Department, $1.8 million ($1.8 million) in the Rural Credits Department and $40.3 million ($37.1 million) for Central Banking Business. Net valuation gains arising from fluctuations in exchange rates of $128.2 million (see Note 8) were not included in the above figures but either passed in reduction of outstanding exchange valuation adjustments (see Note 7) or taken to reserves for contingencies and general purposes (see Note 6). The gain from changing the method of valuing gold to a market related basis (see Note 2) and subsequent changes in that market value and dealing gains/losses in Commonwealth government securities were also taken direct to reserves for contingencies and general purposes.