Reserve Bank of Australia Annual Report – 1977 The Bank's Accounts
The main influences which have brought about changes in the major items of this year's financial statements have been commented on in earlier parts of the Report.
The financial statements show an increase of $1,739 million to $8,110 million in balance sheet aggregates. Major increases in liabilities occurred in Australian notes on issue, statutory reserve deposits of trading banks and deposits of overseas institutions. The increase in assets occurred mainly in Australian government securities and loans, advances and bills discounted. A further reduction was made in the unfunded adjustments arising from fluctuations in exchange rates.
Aggregate operating earnings in 1976/77 were $181 million, some $30 million higher than in 1975/76. The largest increase in income items occurred in interest received and accrued on Australian government securities which rose by $124 million to $219 million; the largest increase in outgo items occurred in interest on deposit liabilities which rose by $62 million to $166 million. Net exchange valuation gains of $86 million ($126 million in 1975/76) were excluded from profit and loss accounts and passed directly to exchange valuation adjustment accounts as a deduction from past exchange losses. The unfunded exchange valuation adjustments were also reduced by transfers totalling $37 million from reserves for contingencies and general purposes of Central Banking Business and Note Issue Department, including amounts allocated from current earnings.
The aggregate net profits of $128.4 million determined in terms of Section 78 of the Reserve Bank Act were appropriated, $126.0 million to the Commonwealth, $1.2 million to the Rural Credits Department Reserve Fund and $1.2 million to the Rural Credits Development Fund.