Reserve Bank of Australia Annual Report – 1993 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 1992/93 were $3,913 million, some $1,359 million higher than in 1991/92. 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). Disaggregation has been increased in 1992/93 and 1991/92 data have been restated in terms of the expanded items.

1991/92 $'000   1992/93 $'000
  Revenues  
1,661,066 Net earnings on overseas investments 1,450,055
1,048,831 Net earnings on Commonwealth Government securities 1,471,292
292,105 Net gains from sales of foreign currency (Note 1(b)) 1,984,766
13,880 Interest on loans, advances, etc. 5,621
20,149 Interest from overnight settlement systems 10,611
3,888 Reimbursement by Commonwealth for loan management and registry expenses 3,852
7,339 Banking services fees received from Commonwealth 7,903
7,840 Income from rental of Bank premises (incl. cleaning/maintenance fees) 4,855
3,041 Commission on gold loans 5,560
3,012 Sales of numismatic and other note products 5,824
1,552 Earnings on shares in Bank for International Settlements 1,913
7,060 Other 9,426
3,069,763 Total Revenues 4,961,678
  Less: Expenses  
274,549 Interest on deposit liabilities 190,711
14,284 Interest for overnight settlement systems 8,329
  Staff costs:  
71,412 Salaries and wages 70,738
16,653 Superannuation contributions (Note 14) 16,217
9,586 Fringe benefits and payroll taxes 7,635
6,268 Provision for accrued annual leave (Note 5) 5,890
3,219 Provision for long service leave (Note 5) 3,197
9,427 Other 8,567
18,828 Special voluntary redundancy/retirement payments (Note 11) 2,722
6,500 Amounts written off bank premises (depreciation) (Note 6) 5,896
10,289 Depreciation of durable assets (Note 6) 10,836
12,017 Premises 12,825
11,624 Equipment 15,710
2,010 Stores and stationery 1,757
8,294 Materials used in note production 7,675
1,576 Travel 1,511
2,227 Consultants' fees (Note 13) 2,534
1,341 Telecommunications 1,313
1,456 Reference materials 1,641
23,017 Maintenance of Value payment to International Monetary Fund 15,814
11,078 Other 7,009
515,655 Total Expenses 398,527
2,554,108 Net Operating Earnings 4,563,151
– Amounts provided for contingencies – (Note 1(e), 3) in terms of section 78 of the Reserve Bank Act 650,000
2,554,108 Net Profits in terms of the Reserve Bank Act 3,913,151

The maintenance of value payment to the International Monetary Fund reflects 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. “Other expenses” in 1991/92 included $3.9 million for the write-off of obsolete equipment at Note Printing Australia. “Consultants' fees” cover payments made to specialists for “review and advice” services; they exclude expenditure on consultants incurred in respect of major projects where such costs are capitalised as part of the asset value. (See also Note 13.)