Reserve Bank of Australia Annual Report – 2006 Financial Statements Note 4

Note 4 INTEREST REVENUE AND INTEREST EXPENSE
Analysis for the year ended 30 June 2006

Average
balance $M
Interest $M Average
annual
interest rate %
Interest revenue
Overseas investments 62,665   2,092   3.3
Australian dollar securities 23,157   1,322   5.7
Overnight settlements 928   49   5.3
Gold loans 1,799   13   0.7
Loans, advances and other 20   1   3.4
  88,569   3,477   3.9
Interest expense
Banks' Exchange Settlement balances 782   41   5.3
Deposits from governments 29,255   1,628   5.6
Deposits from overseas institutions 1,482   7   0.5
Currency note holdings of banks 2,971   165   5.6
Overseas repurchase agreements 8,088   291   3.6
Domestic repurchase agreements 780   42   5.4
Other deposits 15   –   1.6
  43,373   2,174   5.0
Analysis for the year ended 30 June 2005
Interest revenue total 70,626   2,392   3.4
Interest expense total 27,385   1,243   4.5

Interest revenue for 2005/06 includes $2,588 million calculated using the effective interest method for financial assets not at fair value through profit and loss ($1,488 million in 2004/05). Interest expense for 2005/06 includes $2,174 million calculated using the effective interest method for financial liabilities not at fair value through profit and loss ($1,243 million in 2004/05).