Reserve Bank of Australia Annual Report – 1993 The Bank's Accounts


The Bank's financial statements for 1992/93, together with explanatory notes, are presented in the following pages.

The Bank's net operating earnings were $4,563 million in 1992/93, compared with $2,554 million in the previous year (Note 2). The major factor contributing to the increase was net realised gains of $2,803 million from sales of securities and currencies (net gains of $1,038 million in 1991/92); the gains arose mainly from sales of foreign exchange and, to a lesser extent, sales of securities.

In determining net profit, in terms of section 78 of the Reserve Bank Act, the Treasurer approved the Board's decision to write $5.9 million off Bank premises, and approved the transfer of $650 million to the Reserve for Contingencies and General Purposes.

The Bank's net profit in terms of the Act for 1992/93 was $3,913 million ($2,554 million in 1991/92). The Treasurer determined that $100 million should be transferred to the Reserve Bank Reserve Fund. The remaining $3,813 million is payable to the Commonwealth; an interim payment ($600 million) was made in June 1993 and the remainder is payable in August.

The Bank's balance sheet rose by $4.9 billion to $36.5 billion between June 1992 and June 1993. Significant changes included:

  • On the liabilities side, capital and reserves rose by $1.5 billion. Apart from the transfers mentioned above, $0.7 billion represented the net effects on revaluation reserves (see Note 3). Notes on issue rose by $1.2 billion (7.8 per cent). At 30 June 1993 the Commonwealth's deposits with the Bank were $0.1 billion higher than a year earlier. There was an increase of $0.3 billion in the level of banks' Non-callable deposits; overall deposits rose by $0.7 billion. The amount of profit payable to the Commonwealth at 30 June 1993 was $1.3 billion higher than a year earlier. Other liabilities rose by $0.4 billion, reflecting mainly an increase in overnight settlements items.
  • As well as the large net increase in assets, there were significant changes in their composition. The major changes were in Commonwealth Government securities (+$6.4 billion, including $0.3 billion in valuation changes), gold (+$0.8 billion, virtually all in valuation changes), clearing items (+$0.3 billion; see Notes 7, 8) and foreign exchange (−$4.4 billion, before valuation adjustments of +$1.8 billion (see Note 3)).