Reserve Bank of Australia Annual Report – 2012 Financial Statements Note 2 – Net Profits
| Note | 2012 $M | 2011 $M | |
|---|---|---|---|
| Interest revenue | |||
| Overseas investments | 1(b), 4 | 325 | 391 |
| Australian dollar securities | 1(b), 4 | 1,508 | 1,497 |
| Overnight settlements | 4 | 41 | 41 |
| Gold loans | 1(c), 4 | – | – |
| Loans, advances and other | 4 | 1 | 1 |
| 1,875 | 1,930 | ||
| Net gains on securities and foreign exchange | |||
| Overseas investments | 1(b) | 426 | – |
| Australian dollar securities | 1(b) | 188 | – |
| Foreign currency | 1(b) | (228) | – |
| 386 | – | ||
| Dividend revenue | |||
| Earnings on shares in Bank for International Settlements | 1(b) | 4 | 4 |
| Fees and commissions | |||
| Banking services fees received | 24 | 20 | |
| Other income | |||
| Reimbursement by Australian Government for loan management and registry expenses |
1 | 1 | |
| Rental of Bank premises | 9 | 9 | |
| Sales of note and security products | 66 | 63 | |
| Other | 21 | 25 | |
| 97 | 98 | ||
| Total | 2,386 | 2,052 | |
| Less: | |||
| Interest expense | |||
| Deposit liabilities | 1(b), 4 | 753 | 643 |
| Currency note holdings of banks | 1(b), 4 | 123 | 133 |
| Repurchase agreements | 1(b), 4 | 13 | 22 |
| 889 | 798 | ||
| Net losses on securities and foreign exchange | |||
| Overseas investments | 1(b) | – | 94 |
| Australian dollar securities | 1(b) | – | 26 |
| Foreign currency | 1(b) | – | 5,666 |
| – | 5,786 | ||
| General administrative expenses | |||
| Staff costs | 192 | 141 | |
| Superannuation costs | 1(h), 14 | 45 | 45 |
| Special redundancy/retirement payments | 2 | 2 | |
| Depreciation of property | 1(d), 8 | 7 | 8 |
| Depreciation of plant and equipment | 1(d), 8 | 18 | 18 |
| Premises and equipment | 1(d) | 38 | 39 |
| Materials used in note and security products | 48 | 36 | |
| Travel | 3 | 3 | |
| Consultants' fees, legal fees and payments to contractors | 8 | 5 | |
| Other | 9 | 6 | |
| 370 | 303 | ||
| Other expenses | |||
| Agency business reimbursement | 7 | 3 | |
| Subsidiary income tax | 3 | 2 | |
| Cash distribution expenses | 5 | 5 | |
| Other | 36 | 44 | |
| 51 | 54 | ||
| Total | 1,310 | 6,941 | |
| Net Profit | 1,076 | (4,889) | |
Staff costs in 2011/12 include an expense of $34.4 million associated with the increase in the balance of the provision for post-employment benefits (in 2010/11 there was income of $4.6 million) (refer Note 10). Post-employment healthcare costs of $34.5 million are included in Staff costs ($4.5 million in 2010/11). The large increase in these provisions mainly reflected the fall in the discount rate, as measured by the yield on Commonwealth Government bonds. Excluding provisions, staff costs rose by 5.6 per cent in 2011/12.
The RBA's aggregate research and development expenditure recognised as an expense in 2011/12 was $0.6 million ($0.6 million in 2010/11); this is included in Other expenses.