Reserve Bank of Australia Annual Report – 1996 Financial Statements Operating Earnings (and Net Profits)

Note 2 Operating Earnings (and Net Profits)

As shown in the following table, net profits in terms of the Reserve Bank Act in 1995/96 were $2,386 million.

The maintenance of value payment from/to the International Monetary Fund reflects the effects of exchange rate movements on Australia's obligations to maintain the value, in Special Drawing Rights, of the International Monetary Fund's holdings of Australian currency. “Consultants' fees” cover payments made to specialists for “review and advice” services; they include legal and audit fees, but exclude expenditure on consultants incurred in respect of major refurbishment projects where such costs are capitalised as part of the asset value. (See also Note 13.)

The Bank assesses regularly the value of notes still outstanding at least five years after the note issue ceased which are judged to have been destroyed and therefore unavailable for presentation. No amount was written off Australian Notes on Issue in 1995/96. (The write-off in 1994/95 was $14.2 million.)

1994/95 $'000   1995/96 $'000
  Revenues
858,829 Net earnings on overseas investments (Note 1(b)) 595,687
1,379,286 Net earnings on Commonwealth Government securities (Note 1(c)) 1,527,220
37,384 Net gains from sales of foreign currency (Note 1(b)) 1,681,751
14,936 Interest on loans, advances, etc. 18,837
2,793 Net interest from overnight settlements systems 3,193
2,924 Reimbursement by Commonwealth for loan management and registry expenses 2,851
10,125 Banking services fees received from Commonwealth 10,496
3,362 Income from rental of Bank premises (incl. cleaning/maintenance fees) 4,424
6,049 Commission on gold loans (Note 1(b)) 20,641
5,981 Sales of numismatic and other note products 10,019
2,484 Earnings on shares in Bank for International Settlements (Note 9) 2,108
– Maintenance of Value Payment from International Monetary Fund 39,297
25,691 Other 13,237
2,349,844 Total Revenues 3,929,761
  Less: Expenses
351,222 Interest on deposit liabilities 253,182
  Staff costs:  
69,021 Salaries and wages 69,703
7,988 Superannuation contributions (Note 14) 16,997
13,416 Fringe benefits and payroll taxes 12,943
7,230 Provision for accrued annual leave (Note 5) 6,113
2,502 Provision for long service leave (Note 5) 1,565
30,348 Provision for post-employment benefits (Note 5) 4,805
8,303 Other 8,182
18,084 Special voluntary redundancy/retirement payments (Note 11) 1,317
6,902 Amounts written off bank premises (depreciation) (Note 6) 6,872
8,803 Depreciation of durable assets (Note 6) 6,975
10,043 Premises 10,128
12,681 Equipment 10,864
1,456 Stores and stationery 1,511
7,137 Materials used in note production 9,578
1,557 Travel 1,834
1,095 Consultants' fees (Note 13) 992
1,133 Telecommunications 1,192
1,747 Reference materials 1,845
10,001 Maintenance of Value Payment to International Monetary Fund –
– Net unrealised losses on foreign currency holdings (Note 1(e)) 1,010,302
7,111 Other 7,054
577,780 Total Expenses 1,443,954
1,772,064 Net Operating Earnings 2,485,807
– Amounts provided for contingencies (Notes 1(e), 3) in terms of section 78 of the Reserve Bank Act 100,000
1,772,064 Net Profits in terms of the Reserve Bank Act 2,385,807