Reserve Bank of Australia Annual Report – 1979 Financial Statements Notes to and Forming Part of the Financial Statements

Note 1 Aggregate operating earnings (and net profits)

Aggregate operating earnings in 1978/79 were $217.9 million, some $28.6 million higher than in 1977/78. Details of operating earnings are:

	1979 $'000	1978 $'000		1979 $'000	1978 $'000
Interest paid/accrued on deposit liabilities	174,356	178,168	Net earnings on overseas investments	97,100	86,081
Other expenses*	66,944	62,396	Interest received/accrued on Australian government securities
				281,424	261,769
			Interest received/accrued on loans, advances	67,953	71,875
Operating earnings	217,895	189,254	Other income	12,718	10,093
	459,195	429,818		459,195	429,818
			Operating earnings	217,895	189,254
Amounts written off premises	1,177	1,165
Transfer to Reserves for contingencies and general purposes	2,306	2,633
Net profits	214,412	185,456
	217,895	189,254		217,895	189,254
			Net profits	214,412	185,456
*Includes staff costs of $51.0 million ($47.7 million)

Net valuation surplus arising from fluctuations in exchange rates (see Note 6) was not included in the above figures but taken to Reserves for contingencies and general purposes (see Note 5). The gain from changes in the marketvalue ofgold and dealing gains/losses in Commonwealth government securities were also taken direct to Reserves for contingencies and general purposes.