Reserve Bank of Australia Annual Report – 2016 Financial Statements Note 4 – Interest Income and Interest Expense

Analysis for the year ended 30 June 2016.

  Average balance
$M
Interest
$M
Average annual interest rate
 per cent
Interest income
Foreign currency investments 63,013 189 0.3
Australian dollar investments 86,152 2,098 2.4
Overnight settlements 342 6 1.7
Cash collateral provided 563 11 1.9
Gold loans 195 1 0.2
Loans, advances and other 23 1.6
  150,288 2,305 1.5
Interest expense
Exchange Settlement balances 23,552 458 1.9
Deposits from governments 29,280 581 2.0
Deposits from overseas institutions 2,363 17 0.7
Banknote holdings of banks 2,913 50 1.7
Foreign currency repurchase agreements 3,313 4 0.1
Australian dollar repurchase agreements 66 1 2.0
Cash collateral received 95 1 2.0
Other deposits 14 1.0
  61,596 1,112 1.8
Net interest income 88,692 1,193 1.3
Analysis for the year ended 30 June 2015
Interest income 135,194 2,165 1.6
Interest expense 56,439 1,245 2.2
Net interest income 78,755 920 1.2

Interest income for 2015/16 includes $1,503 million calculated using the effective interest method for financial assets not at fair value through profit or loss ($1,625 million in 2014/15). Interest expense for 2015/16 includes $1,112 million calculated using the effective interest method for financial liabilities not at fair value through profit or loss ($1,245 million in 2014/15).