Reserve Bank of Australia Annual Report – 2005 Financial Statements Note 2

Note 2 NET PROFITS

Note 2005 $M 2004 $M
Interest revenue
Overseas investments 1(c)   1,265   1,024
Australian dollar securities 1(d)   1,069   811
Overnight settlements     42   37
Gold loans 1(b)   15   16
Loans, advances and other     1   1
      2,392   1,889
Net gains/(losses) on securities and foreign exchange
Overseas investments 1(c)   443   (587)
Australian dollar securities 1(d)   31   (169)
Foreign currency 1(c)   (1,397)   1,829
      (923)   1,073
Dividend revenue
Earnings on shares in Bank for International Settlements     4   4
Fees and commissions
Banking services fees received     19   18
Other revenue
Reimbursement by Australian Government
for loan management and registry expenses		     1   1
Rental of Bank premises     6   5
Sales of note products     35   22
Australian notes on issue written down 1(k)   –   45
Other     15   19
      57   92
Total     1,549   3,076
Less:          
Interest expense
Deposit liabilities 1(g)   919   670
Currency note holdings of banks 1(k)   148   136
Repurchase agreements 1(e)   176   123
      1,243   929
General administrative expenses
Staff costs     126   102
Special redundancy/retirement payments 12   1   3
Depreciation of property 1(f), 8   7   7
Depreciation of plant and equipment 1(f), 8   11   9
Premises and equipment 1(f)   26   24
Materials used in note production     21   9
Travel     2   3
Consultants' fees, legal fees and payments to
contractors		     6   4
Other     6   4
      206   165
Other expenses
Agency business reimbursement     3   2
Subsidiary income tax     –   –
Cash distribution expenses     6   6
Write down of plant and equipment 1(f), 8   –   2
Other     17   17
      26   27
Total     1,475   1,121
Net Profit     74   1,955

Staff costs in 2004/05 include an expense of $10 million associated with the increase in the balance of the Provision for post-employment benefits (gain of $2 million in 2003/04) (refer Note 10).