Reserve Bank of Australia Annual Report – 1988 Financial Statements Note 2 Consolidated Operating Earnings (and Net Profits)
Consolidated net profits in 1987/88 were $789.9 million, some $1,886.2 million less than in 1986/87. 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.
| 1986/87 $'000 |
1987/88 $'000 |
|
|---|---|---|
| Revenues | ||
| 526,737 | Net earnings on overseas investments | 706,319 |
| 1,486,738 | Net earnings on Commonwealth Government securities | 1,188,551 |
| 22,545 | Interest on loans, advances, etc. | 12,435 |
| 14,810 | Reimbursement by Commonwealth for loan management and registry expenses | 12,496 |
| 5,253 | Rents received | 6,749 |
| 1,952,678 | Net gains from sales of foreign currency (Note 1) | 144,686 |
| 39,003 | Other | 42,917 |
| 4,047,764 | Total Revenues | 2,114,153 |
| Less: Expenses | ||
| 396,780 | Interest on deposit liabilities | 406,039 |
| 115,632 | Staff costs | 118,938 |
| 5,100 | Depreciation of durable assets (Note 6) | 5,899 |
| 5,718 | Amounts written off bank premises (Note 6) | 5,786 |
| 66,133 | Other | 47,007 |
| 589,363 | Total Expenses | 583,669 |
| 3,458,401 | Net Operating Earnings | 1,530,484 |
| 782,300 | Amounts provided for contingencies (Note 3, 5) | 740,535 |
| 2,676,101 | Net Profits in terms of the Reserve Bank Act | 789,949 |
Included in other revenues is an amount of $21.3 million received from the International Monetary Fund under arrangements to maintain the value of the International Monetary Fund's holding of Australian currency in terms of the special drawing right. (In 1986/87, the Bank paid $7.7 million to the International Monetary Fund under these arrangements.)