Reserve Bank of Australia Annual Report – 1990 Financial Statements Operating Earnings (and Net Profits)

Note 2 Operating Earnings (and Net Profits) (Note 1(a))

Net profits in 1989/90 were $575 million, some $435 million higher than in 1988/89. 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 5.) The maintenance of value payment to 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.

1988/89
$'000		   1989/90
$'000
  Revenues
996,930 Net earnings on overseas investments 1,248,480
127,436 Net earnings on Commonwealth Government securities 444,240
23,023 Interest on loans, advances, etc. 24,454
33,762 Overnight settlement interest received 52,312
9,433 Reimbursement by Commonwealth for loan management and registry expenses 6,969
5,910 Rents received 6,138
— Net gains from sales of foreign currency (Note 1(b)) 18,672
1,427 Maintenance of value payment from International Monetary Fund —
16,964 Other (Note 1(f)) 52,368
1,214,885 Total Revenues 1,853,633
  Less: Expenses
456,244 Interest on deposit liabilities 536,308
11,913 Overnight settlement interest paid 25,615
  Staff costs:  
79,099 Salaries and wages 77,419
16,679 Superannuation contributions 20,636
8,961 Fringe benefits and payroll taxes 8,621
10,454 Other 11,271
33,134 Special voluntary termination/retirement payments (Note 11) 22,280
25,976 Premises, equipment and stores 24,744
6,014 Amounts written off bank premises (Note 6) 6,349
5,860 Depreciation of durable assets (Note 6) 4,985
127,547 Net losses from sales of foreign currency (Note 1(b)) —
3,131 Banking agency costs 5,460
— Maintenance of value payment to International Monetary Fund 4,809
13,220 Other 10,396
798,232 Total Expenses 758,893
416,653 Net Operating Earnings 1,094,740
276,653 Amounts provided for contingencies (Note 5) 520,000
140,000 Net Profits in terms of the Reserve Bank Act 574,740