Reserve Bank of Australia Annual Report – 1975 Financial Statements Profit and Loss Appropriation Statement

For Year Ended 30 June 1975

      1975 1974
Net profits appropriated as follows:
Rural Credits Department:
Rural Credits Department Reserve Fund   1,080,000   842,768
Rural Credits Development Fund   1,080,000   842,768
  Total   $2,160,000 $1,685,536


  1. Includes accrued interest. Marketable securities included at current market values. Foreign currency amounts converted at current market rates of exchange. Gold valued at the Bank's buying price of $32.25 per fine ounce.
  2. Inter-departmental accounts totalling $1,563,146,371 have been offset – ($1,066,058,167 – 30/6/74).
  3. After writing $935,000 off bank premises, the whole of the net earnings from Central Banking Business and Note Issue Department were transferred to reserves for contingencies with the approval of the Treasurer under Section 78 of the Reserve Bank Act 1959–73.
  4. During 1974/75 net book gains arising from fluctuations in exchange rates totalled $209 million (losses of $390 million in 1973/74). Because of their extraordinary nature, these net book gains (losses) were excluded from profit and loss accounts and passed directly to exchange valuation adjustment accounts as a deduction from (addition to) past exchange losses. In addition, these accounts have been reduced during 1974/75 by transfers totalling $233 million ($139 million in 1973/74) from reserves for contingencies of Central Banking Business and Note Issue Department, including substantial amounts allocated from current earnings.
Assets   1975 1974
Gold, and balances held abroad (including money at short call and treasury bills) (see note 1)   3,064,930,081 2,853,588,450
International Monetary Fund special drawing rights (converted at current market rates of exchange)   89,287,641 149,942,901
Other overseas securities (see note 1)   183,098,396 407,264,402
Australian notes and coin   8,715,586 8,158,626
Australian Government securities (including treasury bills) (treasury bills, treasury notes and debentures at face value, bonds and inscribed stock at lower of cost or face value)   1,227,722,830 1,396,597,108
Cheques and bills of other banks   46,848,187 16,878,228
Loans, advances and bills discounted (after deducting provisions for debts considered bad or doubtful) (see note 2)   440,325,622 603,102,550
Bank premises (at cost less amounts written off)   52,657,833 51,856,403
Bills receivable and remittances in transit   195,041,319 156,004,417
All other assets (including unfunded adjustments arising from fluctuations in exchange rates of $368 million at 1975 and $811 million at 1974) (see note 4)   416,194,250 851,073,289
  Total $5,724,821,745 $6,494,466,374
    1975 1974
Net profits (after deducting amounts written off bank premises and amounts provided for contingencies):      
Central Banking Business (see note 3)   NIL NIL
Note Issue Department (see note 3)   NIL NIL
Rural Credits Department   2,160,000 1,685,536
  Total $2,160,000 $1,685,536

H.M. Knight, Chairman, Reserve Bank Board — 31 July 1975