Reserve Bank of Australia Annual Report – 1987 Financial Statements Consolidated Operating Earnings (and Net Profits)

Note 2 Consolidated Operating Earnings (and Net Profits)

Consolidated net profits in 1986/87 were $2,676.1 million, some $184.1 million higher than in 1985/86. Details are shown below and include amounts written off Bank premises and provided for contingencies in terms of Section 78 of the Reserve Bank Act (Note 3, 5). Transfers to the Reserve Funds, which fall within the terms of Sections 30 and 63 of the Reserve Bank Act, are shown in the Appropriation Statement.

1985/86
$'000		   1986/87
$'000
  Revenues  
601,169 Net earnings on overseas investments 526,737
1,120,097 Net earnings on Commonwealth Government securities 1,486,738
53,403 Interest on loans, advances, etc. 22,545
16,359 Reimbursement by Commonwealth for loan management and registry expenses 14,810
4,729 Rents received 5,253
1,349,615 Net gains from sales of foreign currency (Note 1) 1,952,678
42,052 Other 39,003
3,187,424 Total Revenues 4,047,764
  Less: Expenses  
313,850 Interest on deposit liabilities 396,780
107,708 Staff costs 115,632
6,213 Depreciation of durable assets (Note 6) 5,100
74,734 Other 66,133
502,505 Total Expenses 583,645
2,684,919 Operating Earnings 3,464,119
5,500 Less: Amounts written off bank premises (Note 6) 5,718
187,393 Amounts provided for contingencies (Note 3, 5) 782,300
2,492,026 Net Profits 2,676,101

Included in other expenses is an amount of $7.7 million ($39.4 million in 1985/86) representing the Bank's contribution to maintaining the value of the IMF's holdings of Australian currency in terms of the SDR.