Reserve Bank of Australia Annual Report – 2004 Financial Statements Note 2 – Net Profits
| Note | 2004 $M | 2003 $M | |
|---|---|---|---|
| Interest revenue | |||
| Overseas investments | 1(c) | 1,024 | 1,056 |
| Australian dollar securities | 1(d) | 811 | 1,062 |
| Overnight settlements | 37 | 37 | |
| Gold loans | 1(b) | 16 | 19 |
| Loans, advances and other | 1 | 1 | |
| 1,889 | 2,175 | ||
| Net gains/(losses) on securities and foreign exchange | |||
| Overseas investments | 1(c) | (587) | 1,036 |
| Australian dollar securities | 1(d) | (169) | 49 |
| Foreign currency | 1(c) | 1,829 | (150) |
| 1,073 | 935 | ||
| Dividend revenue | |||
| Earnings on shares in Bank for International Settlements | 4 | 3 | |
| Fees and commissions | |||
| Banking services fees received | 18 | 20 | |
| Other revenue | |||
| Reimbursement by Australian Government for loan management and registry expenses | 1 | 1 | |
| Rental of Bank premises | 5 | 4 | |
| Sales of note products | 22 | 19 | |
| Australian notes on issue written down | 1(k) | 45 | – |
| Other | 19 | 13 | |
| 92 | 37 | ||
| Total | 3,076 | 3,170 | |
| Less: | |||
| Interest expense | |||
| Deposit liabilities | 1(g) | 670 | 513 |
| Currency note holdings of banks | 1(k) | 136 | 136 |
| Repurchase agreements | 1(e) | 123 | 155 |
| 929 | 804 | ||
| General administrative expenses | |||
| Staff costs | 102 | 101 | |
| Special redundancy/retirement payments | 12 | 3 | 3 |
| Depreciation of property | 1(f), 8 | 7 | 7 |
| Depreciation of plant and equipment | 1(f), 8 | 9 | 9 |
| Premises and equipment | 1(f) | 24 | 25 |
| Materials used in note production | 9 | 8 | |
| Travel | 3 | 3 | |
| Consultants' fees, legal fees and payments to contractors | 14 | 4 | 8 |
| Other | 4 | 6 | |
| 165 | 170 | ||
| Other expenses | |||
| Agency business reimbursement | 2 | 3 | |
| Subsidiary income tax | – | – | |
| Cash distribution expenses | 6 | 4 | |
| Write down of plant and equipment | 1(f), 8 | 2 | – |
| Other | 17 | 16 | |
| 27 | 23 | ||
| Total | 1,121 | 997 | |
| Net Profit | 1,955 | 2,173 | |
Staff costs in 2003/04 include a gain of $2 million associated with the decline in the balance of the Provision for post-employment benefits (refer Note 10); in 2002/03 Staff Costs included an expense of $8 million due to an increase in the balance of the provision.