Reserve Bank of Australia Annual Report – 1997 Financial Statements Note 2

Note 2 Net Operating Earnings (and Net Profits)

1996 $'000 1997 $'000
Revenues
Net earnings on overseas investments (Note 1(b)) 595,687 839,572
Net earnings on domestic government securities (Note 1(c)) 1,527,220 1,798,534
Net gains from sales of foreign currency (Note 1(b)) 1,681,751 126,847
Net gains from sales of gold – 1,637,490
Interest on loans, advances, etc. 18,837 4,343
Net interest from overnight settlements systems 3,193 3,319
Reimbursement by Commonwealth for loan management and registry expenses 2,851 2,698
Banking services fees received from Commonwealth 10,496 14,871
Income from rental of Bank premises (incl. cleaning/maintenance fees) 4,424 5,721
Commission on gold loans 20,641 35,125
Sales of numismatic and other note products 10,019 17,049
Earnings on shares in Bank for International Settlements (Note 9) 2,108 2,067
Maintenance of Value payment from International Monetary Fund 39,297 19,147
Other 13,237 17,148
Total Revenues 3,929,761 4,523,931
Less: Expenses
Interest on deposit liabilities 253,182 628,310
Staff costs 120,308 119,354
Special redundancy/retirement payments (Note 11) 1,317 12,912
Amounts written off Bank premises (depreciation) (Note 6) 6,872 7,091
Depreciation of durable assets (Note 6) 6,975 6,864
Premises 10,128 10,467
Equipment 10,864 11,281
Stores and stationery 1,511 1,280
Materials used in note production 9,578 9,469
Travel 1,834 1,706
Consultants' fees (Note 13) 992 1,672
Telecommunications 1,192 1,320
Reference materials 1,845 1,881
Net unrealised losses on foreign currency holdings (Note 1(e)) 1,010,302 –
Other 7,054 5,587
Total Expenses 1,443,954 819,194
Net Operating Earnings 2,485,807 3,704,737
Amounts provided for contingencies (Notes 1(e), 3) in terms of section 78 of the Reserve Bank Act 100,000 367,247
Net Profits in terms of the Reserve Bank Act 2,385,807 3,337,490