Reserve Bank of Australia Annual Report – 2008 Financial Statements Note 4
Note 4 INTEREST REVENUE AND INTEREST EXPENSE
Analysis
for the year ended 30 June 2008
| Average balance |
Interest | Average annual interest rate |
|
|---|---|---|---|
| $M | $M | % | |
| Interest revenue | |||
| Overseas investments | 52,787 | 2,042 | 3.9 |
| Australian dollar securities | 44,459 | 3,092 | 7.0 |
| Overnight settlements | 916 | 61 | 6.6 |
| Gold loans | 1,037 | 8 | 0.8 |
| Loans, advances and other | 14 | 1 | 5.7 |
| 99,213 | 5,204 | 5.2 | |
| Interest expense | |||
| Banks' Exchange Settlement balances | 2,587 | 171 | 6.6 |
| Deposits from governments | 32,322 | 2,151 | 6.7 |
| Deposits from overseas institutions | 2,041 | 20 | 1.0 |
| Currency note holdings of banks | 2,911 | 199 | 6.8 |
| Overseas repurchase agreements | 10,355 | 356 | 3.4 |
| Domestic repurchase agreements | 673 | 43 | 6.5 |
| Other deposits | 15 | – | 1.7 |
| 50,904 | 2,940 | 5.8 | |
| Analysis for the year ended 30 June 2007 | |||
| Interest revenue total | 113,181 | 5,400 | 4.8 |
| Interest expense total | 67,249 | 3,857 | 5.7 |
Interest revenue for 2007/08 includes $4,190 million calculated using the effective interest method for financial assets not at fair value through profit and loss ($4,372 million in 2006/07). Interest expense for 2007/08 includes $2,940 million calculated using the effective interest method for financial liabilities not at fair value through profit and loss ($3,857 million in 2006/07).