Reserve Bank of Australia Annual Report – 2015 Financial Statements Note 2 – Net Profits
| Note | 2015 $M | 2014 $M | |
|---|---|---|---|
| Interest revenue | |||
| Foreign investments | 1(b), 4 | 148 | 153 |
| Australian dollar investments | 1(b), 4 | 2,006 | 1,667 |
| Overnight settlements | 4 | 7 | 13 |
| Cash collateral provided | 4 | 3 | 1 |
| Loans, advances and other | 4 | 1 | – |
| 2,165 | 1,834 | ||
| Net gains/(losses) on securities and foreign exchange | |||
| Foreign investments | 1(b) | 40 | 94 |
| Australian dollar securities | 1(b) | (130) | (90) |
| Foreign currency | 1(b) | 6,146 | 146 |
| 6,056 | 150 | ||
| Dividend revenue | |||
| Investment in Bank for International Settlements | 1(b) | 4 | 3 |
| Fees and commissions | |||
| Banking services fee income | 98 | 86 | |
| Committed Liquidity Facility fee income | 1(k) | 208 | – |
| 306 | 86 | ||
| Commonwealth grant revenue | 1(j) | – | 8,800 |
| Other income | |||
| Rental of Bank premises | 10 | 10 | |
| Sales of note and security products | 41 | 78 | |
| Gain on sale of Securency | 8 | 7 | |
| Other | 20 | 23 | |
| 79 | 118 | ||
| Total | 8,610 | 10,991 | |
| Less: | |||
| Interest expense | |||
| Deposit liabilities | 1(b), 4 | 1,174 | 1,010 |
| Banknote holdings of banks | 1(b), 4 | 63 | 72 |
| Cash collateral received | 4 | 8 | 2 |
| Repurchase agreements | 1(b), 4 | – | 2 |
| 1,245 | 1,086 | ||
| General administrative expenses | |||
| Staff costs | 186 | 189 | |
| Superannuation costs | 1(i), 14 | 54 | 60 |
| Special redundancy/retirement payments | 2 | 1 | |
| Depreciation of property | 1(d), 8 | 8 | 9 |
| Depreciation of plant and equipment | 1(d), 8 | 24 | 21 |
| Amortisation of computer software | 1(e), 7 | 4 | 3 |
| Premises and equipment | 47 | 45 | |
| Materials used in note and security products | 28 | 61 | |
| Travel | 3 | 3 | |
| Consultants' fees, legal fees and payments to contractors | 3 | 4 | |
| Other | 9 | 9 | |
| 368 | 405 | ||
| Other expenses | |||
| Banking service fee expenses | 79 | 67 | |
| Subsidiary income tax | 1 | 2 | |
| Banknote distribution expenses | 4 | 4 | |
| Other | 25 | 35 | |
| 109 | 108 | ||
| Total | 1,722 | 1,599 | |
| Net Profit | 6,888 | 9,392 | |
Staff costs in 2014/15 include a valuation gain of $9.0 million associated with the decline in the balance of the provision for post-employment benefits, mostly for post-employment health insurance (in 2013/14 there was an expense of $4.4 million) (refer Note 10). This post-retirement benefit ceased to be available for new staff appointed after 30 June 2013. The decrease in this provision in 2014/15 reflects an increase in the discount rate.
The RBA incurred aggregate research and development expenditure of $1.1 million in 2014/15 ($1.1 million in 2013/14); this is included in Other expenses.