Note 4 – Interest Income and Interest Expense | Financial Statements | Reserve Bank of Australia Annual Report – 2017

Reserve Bank of Australia Annual Report – 2017 Financial Statements Note 4 – Interest Income and Interest Expense

Analysis for the year ended 30 June 2017

	Average balance $M	Interest $M	Average annual interest rate Per cent
Interest income
Foreign currency investments	67,407	190	0.3
Australian dollar investments	91,644	1,906	2.1
Overnight settlements	371	5	1.3
Cash collateral provided	409	6	1.6
Gold loans	384	1	0.2
Loans, advances and other	30	1	1.6
	160,245	2,109	1.3
Interest expense
Exchange Settlement balances	25,588	384	1.5
Deposits from governments	36,407	613	1.7
Deposits from overseas institutions	2,488	33	1.3
Banknote holdings of banks	3,252	41	1.3
Foreign currency repurchase agreements	1,968	7	0.3
Australian dollar repurchase agreements	95	1	1.4
Cash collateral received	442	7	1.5
Other deposits	14	–	0.4
	70,254	1,086	1.5
Net interest income	89,991	1,023	1.1
Analysis for the year ended 30 June 2016
Interest income	150,288	2,305	1.5
Interest expense	61,596	1,112	1.8
Net interest income	88,692	1,193	1.3

Interest income for 2016/17 includes $1,376 million calculated using the effective interest method for financial assets not at fair value through profit or loss ($1,503 million in 2015/16). Interest expense for 2016/17 includes $1,086 million calculated using the effective interest method for financial liabilities not at fair value through profit or loss ($1,112 million in 2015/16).