Reserve Bank of Australia Annual Report – 1983 Financial Statements Aggregate Operating Earnings (and Net Profits)

Note 2 Aggregate operating earnings (and net profits)

Aggregate operating earnings in 1982/83 were $736.2 million, some $183.5 million higher than in 1981/82. Details of operating earnings are:

  1981/82
$'000		 1982/83
$'000		   1981/82
$'000		 1982/83
$'000
Interest on deposit liabilities 101,479 134,768 Net earnings on overseas investments 215,117 500,006
Staff costs 78,791 89,919 Interest on Australian government securities 448,771 504,444
Other expenses 35,365 133,666 Interest on loans, advances, etc. 84,485 69,858
      Reimbursement by Commonwealth for loan management and registry expenses 10,422 12,746
Operating earnings 552,662 736,181 Other income 9,502 7,480
  768,297 1,094,534   768,297 1,094,534
Amounts written off premises 2,657 2,784 Operating earnings 552,662 736,181
Transfer to Reserves for contingencies and general purposes 107,864 57,706      
Net profits 442,141 675,691      
  552,662 736,181   552,662 736,181

The impact of changes in exchange rates on foreign currency dealings (other than forward exchange contracts – see Note 7) is included in “other expenses”. The amounts were $7.3 million in 1981/82 and $101.4 million in 1982/83 (including $63 million at the time of devaluation on 8 March).

Net valuation surplus arising from fluctuations in exchange rates on assets and liabilities denominated in foreign currencies (see Note 7) was not included in the above figures but taken to Reserves for contingencies and general purposes (see Note 6). The increase in the valuation of gold and dealing gains/losses in Australian government securities were also taken direct to Reserves for contingencies and general purposes.