The Bank's Accounts | Reserve Bank of Australia Annual Report - 1993

Reserve Bank of Australia Annual Report – 1993 The Bank's Accounts

Commentary

The Bank's financial statements for 1992/93, together with explanatory notes, are presented in the following pages.

The Bank's net operating earnings were $4,563 million in 1992/93, compared with $2,554 million in the previous year (Note 2). The major factor contributing to the increase was net realised gains of $2,803 million from sales of securities and currencies (net gains of $1,038 million in 1991/92); the gains arose mainly from sales of foreign exchange and, to a lesser extent, sales of securities.

In determining net profit, in terms of section 78 of the Reserve Bank Act, the Treasurer approved the Board's decision to write $5.9 million off Bank premises, and approved the transfer of $650 million to the Reserve for Contingencies and General Purposes.

The Bank's net profit in terms of the Act for 1992/93 was $3,913 million ($2,554 million in 1991/92). The Treasurer determined that $100 million should be transferred to the Reserve Bank Reserve Fund. The remaining $3,813 million is payable to the Commonwealth; an interim payment ($600 million) was made in June 1993 and the remainder is payable in August.

The Bank's balance sheet rose by $4.9 billion to $36.5 billion between June 1992 and June 1993. Significant changes included:

On the liabilities side, capital and reserves rose by $1.5 billion. Apart from the transfers mentioned above, $0.7 billion represented the net effects on revaluation reserves (see Note 3). Notes on issue rose by $1.2 billion (7.8 per cent). At 30 June 1993 the Commonwealth's deposits with the Bank were $0.1 billion higher than a year earlier. There was an increase of $0.3 billion in the level of banks' Non-callable deposits; overall deposits rose by $0.7 billion. The amount of profit payable to the Commonwealth at 30 June 1993 was $1.3 billion higher than a year earlier. Other liabilities rose by $0.4 billion, reflecting mainly an increase in overnight settlements items.
As well as the large net increase in assets, there were significant changes in their composition. The major changes were in Commonwealth Government securities (+$6.4 billion, including $0.3 billion in valuation changes), gold (+$0.8 billion, virtually all in valuation changes), clearing items (+$0.3 billion; see Notes 7, 8) and foreign exchange (−$4.4 billion, before valuation adjustments of +$1.8 billion (see Note 3)).