Reserve Bank of Australia Annual Report – 1991 Financial Statements Operating Earnings (and Net Profits)
Note 2 Operating Earnings (and Net Profits) (Note 1(a))
Net profits in terms of the Reserve Bank Act in 1990/91 were $1,588 million, some $1,013 million higher than in 1989/90. Details are shown below and include amounts written off Bank premises, net unrealised losses on investments at balance date (see Note 1(e)) and amounts provided for contingencies in terms of section 78 of the Reserve Bank Act (see Note 3, 5). The maintenance of value payment to the International Monetary Fund results from 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.
1989/90 $'000 |
1990/91 $'000 |
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Revenues | |||
1,248,480 | Net earnings on overseas investments | 1,562,506 | |
444,240 | Net earnings on Commonwealth Government securities | 838,579 | |
24,454 | Interest on loans, advances, etc. | 19,210 | |
52,312 | Overnight settlement interest received | 22,356 | |
6,969 | Reimbursement by Commonwealth for loan management and registry expenses | 6,243 | |
6,138 | Rents received | 6,689 | |
18,672 | Net gains from sales of foreign currency (Note 1(b)) | – | |
52,368 | Other (Note 1(g)) | 22,948 | |
1,853,633 | Total Revenues | 2,478,531 | |
Less: | Expenses | ||
536,308 | Interest on deposit liabilities | 429,698 | |
25,615 | Overnight settlement interest paid | 11,209 | |
Staff costs: | |||
77,419 | Salaries and wages | 80,022 | |
20,636 | Superannuation contributions (Note 13) | 18,764 | |
8,621 | Fringe benefits and payroll taxes | 9,110 | |
11,271 | Other | 9,919 | |
22,280 | Special voluntary termination/retirement payments (Note 11) | 3,735 | |
24,744 | Premises, equipment and stores | 30,010 | |
6,349 | Amounts written off bank premises (Note 6) | 6,466 | |
4,985 | Depreciation of durable assets (Note 6) | 7,678 | |
– | Net losses from sales of foreign currency (Note 1(b)) | 55,518 | |
– | Net unrealised losses on investments (Note 1(e)) | 80,761 | |
5,460 | Banking agency costs | 6,303 | |
4,809 | Maintenance of value payment to International Monetary Fund | 3,854 | |
10,396 | Other | 12,165 | |
758,893 | Total Expenses | 765,212 | |
1,094,740 | Net Operating Earnings | 1,713,319 | |
Less: 520,000 |
Amounts provided for contingencies (Note 1(e), 3, 5) in terms of section 78 of the Reserve Bank Act | 125,000 | |
574,740 | Net Profits in terms of the Reserve Bank Act | 1,588,319 |
Net unrealised losses on investments and holdings of foreign currencies in 1989/90 totalled $199.2 million. These were charged against provision accounts maintained at that time and do not appear in the above figures for that year. (Refer Note 5 to 1989/90 Annual Report.)