Reserve Bank of Australia Annual Report – 2011 Financial Statements Note 2 – Net Profits
| Note | 2011 $M | 2010 $M | |
|---|---|---|---|
| Interest revenue | |||
| Overseas investments | 1(b), 4 | 391 | 452 |
| Australian dollar securities | 1(b), 4 | 1,497 | 1,515 |
| Overnight settlements | 4 | 41 | 26 |
| Gold loans | 1(c), 4 | – | – |
| Loans, advances and other | 4 | 1 | 1 |
| 1,930 | 1,994 | ||
| Dividend revenue | |||
| Earnings on shares in Bank for International Settlements | 1(b) | 4 | 11 |
| Fees and commissions | |||
| Banking services fees received | 20 | 20 | |
| Other revenue | |||
| Reimbursement by Australian Government for loan management and registry expenses |
1 | 1 | |
| Rental of Bank premises | 9 | 9 | |
| Sales of note and security products | 63 | 35 | |
| Other | 25 | 24 | |
| 98 | 69 | ||
| Total | 2,052 | 2,094 | |
| Less: | |||
| Interest expense | |||
| Deposit liabilities | 1(b), 4 | 643 | 801 |
| Currency note holdings of banks | 1(b), 4 | 133 | 104 |
| Repurchase agreements | 1(b), 4 | 22 | 13 |
| 798 | 918 | ||
| Net losses on securities and foreign exchange | |||
| Overseas investments | 1(b) | 94 | (416) |
| Australian dollar securities | 1(b) | 26 | (75) |
| Foreign currency | 1(b) | 5,666 | 4,273 |
| 5,786 | 3,782 | ||
| General administrative expenses | |||
| Staff costs | 141 | 148 | |
| Superannuation costs | 1(h), 14 | 45 | 33 |
| Special redundancy/retirement payments | 2 | 2 | |
| Depreciation of property | 1(d), 8 | 8 | 9 |
| Depreciation of plant and equipment | 1(d), 8 | 18 | 17 |
| Premises and equipment | 1(d) | 39 | 37 |
| Materials used in note and security products | 36 | 23 | |
| Travel | 3 | 3 | |
| Consultants' fees, legal fees and payments to contractors | 5 | 2 | |
| Other | 6 | 8 | |
| 303 | 282 | ||
| Other expenses | |||
| Agency business reimbursement | 3 | 3 | |
| Subsidiary income tax | 2 | 2 | |
| Cash distribution expenses | 5 | 6 | |
| Other | 44 | 29 | |
| 54 | 40 | ||
| Total | 6,941 | 5,022 | |
| Net Profit | (4,889) | (2,928) | |
Staff costs in 2010/11 include income of $4.6 million associated with the decrease in the balance of the provision for post-employment benefits (in 2009/10 there was an expense of $10.5 million) (refer Note 10). Post-employment health care costs of $4.5 million are included in Staff costs ($10.3 million in 2009/10).
The RBA's aggregate research and development expenditure recognised as an expense in 2010/11 was $0.6 million ($0.7 million in 2009/10); this is included in Other Expenses.