Reserve Bank of Australia Annual Report – 1980 The Bank's Accounts

Commentary

The financial statements show an increase of $1,761 million to $12,007 million in aggregate balance sheet totals. Factors influencing the main items are mentioned in earlier parts of the Report.

The rise in the market value of gold during the year again resulted in substantial increases in the book value of the Bank's gold holdings and in its reserves. There were further reductions in deposit liabilities to overseas governments and institutions, and in holdings of foreign exchange and IMF special drawing rights. Other major movements in balance sheet items were an increase in the Statutory Reserve Deposits of trading banks, continuing growth in Australian notes on issue, and reductions in deposits of savings banks and of governments and their instrumentalities.

Aggregate operating earnings of $274 million in 1979/80 were $56 million higher than in 1978/79, mainly as a result of a net reduction in interest paid on deposit liabilities. Net earnings on foreign currency investments benefited from relatively high interest rates available in most overseas markets.

The aggregate net profits of $251.0 million determined in terms of Section 78 of the Reserve Bank Act 1959 were appropriated $247.7 million to the Commonwealth, $1.65 million to the Rural Credits Department Reserve Fund and $1.65 million to the Rural Credits Development Fund.