Reserve Bank of Australia Annual Report – 1992 Financial Statements Operating Earnings (and Net Profits)

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

Net profits in terms of the Reserve Bank Act in 1991/92 were $2,554.1 million, some $965.8 million higher than in 1990/91. Details are shown below and include amounts written off Bank premises, and amounts provided for contingencies in terms of section 78 of the Reserve Bank Act (see Note 3, 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, in Special Drawing Rights, of the International Monetary Fund's holdings of Australian currency.

1990/91 $'000   1991/92 $'000
  Revenues
1,562,506 Net earnings on overseas investments 1,661,066
838,579 Net earnings on Commonwealth Government securities 1,048,831
13,658 Interest on loans, advances, etc. 13,912
27,908 Interest from overnight settlement systems 20,149
6,243 Reimbursement by Commonwealth for loan management and registry expenses 3,888
6,894 Banking services fees received from Commonwealth 6,714
6,689 Rents received 7,218
– Net gains from sales of foreign currency (Note 1(b)) 292,105
16,054 Other (Note 1(g)) 15,880
2,478,531 Total Revenues 3,069,763
  Less: Expenses
423,696 Interest on deposit liabilities 274,549
17,211 Interest for overnight settlement systems 14,284
  Staff costs:  
80,022 Salaries and wages 77,572
18,764 Superannuation contributions (Note 13) 16,653
9,110 Fringe benefits and payroll taxes 9,586
9,919 Other 12,555
3,735 Special voluntary termination/retirement payments (Note 11) 18,828
30,010 Premises, equipment and stores 33,942
6,466 Amounts written off bank premises (depreciation) (Note 6) 6,500
7,678 Depreciation of durable assets (Note 6) 10,289
55,518 Net losses from sales of foreign currency (Note 1(b)) –
80,761 Net unrealised losses on investments (Note 1(e)) –
6,303 Banking agency costs 173
3,854 Maintenance of value payment to International Monetary Fund 23,017
12,165 Other 17,707
765,212 Total Expenses 515,655
1,713,319 Net Operating Earnings 2,554,108
125,000 Amounts provided for contingencies (Note 1(e), 3) in terms of section 78 of the Reserve Bank Act –
1,588,319 Net Profits in terms of the Reserve Bank Act 2,554,108

The 1991/92 figures include all interest received and paid from overnight settlement systems (Clearing House, Austraclear and RITS) under the one item (“Interest from/for overnight settlement systems”). Previously, interest relating to Austraclear and RITS had been included in interest received on loans, etc. and interest paid on deposits, as appropriate; figures for 1990/91 have been restated to reflect this change. “Other” expenses in 1991/92 include a $3.9 million write off of obsolete equipment at Note Printing Australia.