Reserve Bank of Australia Annual Report – 2021 Financial Statements Note 4 – Interest Income and Interest Expense
Analysis for the year ended 30 June 2021
| Average balance $M |
Interest $M |
Average annual interest rate Per cent |
|
|---|---|---|---|
| Interest income | |||
| Foreign currency investments | 54,220 | 138 | 0.3 |
| Australian dollar investments | 280,805 | 4,293 | 1.5 |
| Overnight settlements | 503 | 0 | 0.0 |
| Cash collateral provided | 86 | 0 | 0.1 |
| Gold loans | 826 | 1 | 0.1 |
| Gold borrowed under gold swaps | – | – | – |
| Loans, advances and other | 32 | 0 | 0.6 |
| 336,472 | 4,432 | 1.3 | |
| Interest expense | |||
| Exchange Settlement balances | 139,878 | 40 | 0.0 |
| Deposits from governments | 74,308 | 107 | 0.1 |
| Deposits from overseas institutions | 5,401 | 0 | 0.0 |
| Banknote holdings of banks | 3,873 | 1 | 0.0 |
| Foreign currency repurchase agreements | 556 | 0 | 0.0 |
| Australian dollar repurchase agreements | 180 | 0 | (0.1) |
| Gold loaned under gold swaps | 623 | (1) | (0.1) |
| Cash collateral received | 172 | 0 | 0.0 |
| 224,991 | 147 | 0.1 | |
| Net interest margin | 1.3 | ||
| Analysis for the year ended 30 June 2020 | |||
| Interest income | 190,279 | 1,944 | 1.0 |
| Interest expense | 84,610 | 446 | 0.5 |
| Net interest margin | 0.8 | ||
Interest income for 2020/21 includes $276 million calculated using the effective interest method for financial assets not at fair value through profit or loss ($736 million in 2019/20). Interest expense for 2020/21 includes $147 million calculated using the effective interest method for financial liabilities not at fair value through profit or loss ($446 million in 2019/20).