Reserve Bank of Australia Annual Report – 2007 Financial Statements Note 2
Note 2 NET PROFITS
| Note | 2007 $M | 2006 $M | |||
|---|---|---|---|---|---|
| Interest revenue | |||||
| Overseas investments | 1(b), 4 | 3,276 | 2,092 | ||
| Australian dollar securities | 1(b), 4 | 2,056 | 1,322 | ||
| Overnight settlements | 4 | 56 | 49 | ||
| Gold loans | 1(c), 4 | 11 | 13 | ||
| Loans, advances and other | 4 | 1 | 1 | ||
| 5,400 | 3,477 | ||||
| Net gains/(losses) on securities and foreign exchange | |||||
| Overseas investments | 1(b) | (80) | (826) | ||
| Australian dollar securities | 1(b) | (117) | (137) | ||
| Foreign currency | 1(b) | (2,577) | 1,898 | ||
| (2,774) | 935 | ||||
| Dividend revenue | |||||
| Earnings on shares in Bank for International Settlements | 1(b) | 4 | 5 | ||
| Fees and commissions | |||||
| Banking services fees received | 17 | 18 | |||
| Other revenue | |||||
| Reimbursement by Australian Government for loan management and registry expenses |
1 | 1 | |||
| Rental of Bank premises | 7 | 6 | |||
| Sales of note products | 31 | 30 | |||
| Other | 24 | 26 | |||
| 63 | 63 | ||||
| Total | 2,710 | 4,498 | |||
| Less: | |||||
| Interest expense | |||||
| Deposit liabilities | 1(b), 4 | 3,150 | 1,676 | ||
| Currency note holdings of banks | 1(b), 4 | 179 | 165 | ||
| Repurchase agreements | 1(b), 4 | 528 | 333 | ||
| 3,857 | 2,174 | ||||
| General administrative expenses | |||||
| Staff costs | 118 | 111 | |||
| Superannuation costs | 1(h), 14 | 15 | 13 | ||
| Special redundancy/retirement payments | 1 | – | |||
| Depreciation of property | 1(d), 8 | 6 | 7 | ||
| Depreciation of plant and equipment | 1(d), 8 | 10 | 15 | ||
| Premises and equipment | 1(d) | 31 | 28 | ||
| Materials used in note production | 22 | 22 | |||
| Travel | 3 | 3 | |||
| Consultants' fees, legal fees and payments to contractors | 2 | 2 | |||
| Other | 9 | 6 | |||
| 217 | 207 | ||||
| Other expenses | |||||
| Agency business reimbursement | 3 | 3 | |||
| Subsidiary income tax | 2 | – | |||
| Cash distribution expenses | 6 | 8 | |||
| Other | 18 | 13 | |||
| 29 | 24 | ||||
| Total | 4,103 | 2,405 | |||
| Net Profit/(Loss) | (1,393) | 2,093 | |||
Staff costs in 2006/07 includes a credit of $1.3 million associated with the decrease in the balance of the Provision for post‑employment benefits (the credit in 2005/06 was $4.9 million) (refer Note 10). Post-employment health care costs of $1.4 million are included in Staff Costs ($4.7 million in 2005/06).
The RBA's aggregate research and development expenditure recognised as an expense in 2006/07 was $0.7 million ($0.6 million in 2005/06); this is included in Other Expenses.