Reserve Bank of Australia Annual Report – 1979 The Bank's Accounts

The financial statements show an increase of $1,568 million to $10,247 million in aggregate balance sheet totals; earlier parts of the Report commented on factors influencing changes in the main items. The financial statements include information which is additional to statutory requirements.

The rise in the market value of gold during the year resulted in both an increase in the book value of the Bank's gold holdings and an increase in its reserves. Other major movements in balance sheet items included increases in Australian notes on issue, higher Statutory Reserve Deposits of the trading banks, offset by reduced deposits of savings banks, and increases in deposits of the Commonwealth Government and in holdings of Australian government securities.

Aggregate operating earnings in 1978/79 of $218 million were $29 million higher than in 1977/78, most of the increase resulting from higher earnings on overseas investments and on Australian government securities. Of the outgo items, interest on deposit liabilities was down $4 million to $174 million, a rise on interest paid on overseas borrowings being more than offset by lower interest payments to trading and savings banks. Other expenses, including staffing costs, also rose during the year. Net exchange valuation gains of $105 million were transferred to reserves.

The aggregate net profits of $214.4 million determined in terms of Section 78 of the Reserve Bank Act 1959 were appropriated, $211.4 million to the Commonwealth, $1.5 million to the Rural Credits Department Reserve Fund and $1.5 million to the Rural Credits Development Fund.