Reserve Bank of Australia Annual Report – 1989 Financial Statements Note 2 Consolidated Operating Earnings (and Net Profits)

Consolidated net profits in 1988/89 were $140 million, some $649.9 million less than in 1987/88. 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. (See Note 3, 5.) The maintenance of value payment from the International Monetary Fund results from the effects of movements in exchange rates on Australia's obligations to maintain the value of the International Monetary Fund's holdings of Australian currency in terms of the special drawing right.

1987/88
$'000		   1988/89
$'000
  Revenues
706,319 Net earnings on overseas investments 996,930
1,188,551 Net earnings on Commonwealth Government securities 127,436
12,435 Interest on loans, advances, etc. 23,023
16,635 Overnight settlement interest received 33,762
12,496 Reimbursement by Commonwealth for loan management and registry expenses 9,433
6,749 Rents received 5,910
144,686 Net gains from sales of foreign currency (Note 1) —
21,324 Maintenance of value payment from International Monetary Fund 1,427
4,958 Other 16,964
2,114,153 Total Revenues 1,214,885
  Less: Expenses
406,039 Interest on deposit liabilities 456,244
5,814 Overnight settlement interest paid 11,913
  Staff costs:  
84,936 Salaries and wages 79,099
17,372 Superannuation contributions 16,679
9,495 Fringe benefits and payroll taxes 8,961
7,135 Other 10,454
— Special voluntary termination/retirement payments (Note 13) 33,134
5,899 Depreciation of durable assets (Note 6) 5,860
5,786 Amounts written off bank premises (Note 6) 6,014
— Net losses from sales of foreign currency (Note 1) 127,547
28,507 Premises, equipment and stores 25,976
4,238 Banking agency costs 3,131
8,448 Other 13,220
583,669 Total Expenses 798,232
1,530,484 Net Operating Earnings 416,653
740,535 Amounts provided for contingencies (Note 3, 5) 276,653
789,949 Net Profits in terms of the Reserve Bank Act 140,000