Reserve Bank of Australia Annual Report – 2003 Financial Statements Note 2 – Net Profits

Note 2003 $M 2002 $M
Interest revenue
Overseas investments 1(c) 1,056 1,186
Australian dollar securities 1(d) 1,062 957
Overnight settlements   37 30
Gold loans 1(b) 19 22
Loans, advances and other   1 1
  2,175 2,196
Net gains/(losses) on securities and foreign exchange
Overseas investments 1(c) 1,036 207
Australian dollar securities 1(d) 49 (99)
Foreign currency 1(c) (150) 360
  935 468
Dividend revenue
Earnings on shares in Bank for International Settlements   3 4
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   4 5
Sales of note products   19 19
Other   13 14
  37 39
Total   3,170 2,727
Less:
Interest expense
Deposit liabilities 1(g) 513 454
Currency note holdings of banks 1(k) 136 78
Repurchase agreements 1(e) 155 152
  804 684
General administrative expenses
Staff costs   101 86
Special redundancy/retirement payments 12 3 4
Depreciation of property 8 7 7
Depreciation of plant and equipment 8 9 8
Premises and equipment   25 25
Materials used in note production   8 8
Travel   3 3
Consultants' fees 14 8 2
Other   6 6
  170 149
Other expenses
Agency business reimbursement   3 3
Subsidiary income tax   – –
Cash distribution expenses   4 4
Other   16 19
  23 26
Total   997 859
Net Profit   2,173 1,868

Staff costs in 2002/03 include an expense of $8 million associated with the increase in the balance of the Provision for post-employment benefits (refer Note 10).