Reserve Bank of Australia Annual Report – 2004 Financial Statements Note 2 – Net Profits

Note 2004 $M 2003 $M
Interest revenue
Overseas investments 1(c) 1,024 1,056
Australian dollar securities 1(d) 811 1,062
Overnight settlements   37 37
Gold loans 1(b) 16 19
Loans, advances and other   1 1
  1,889 2,175
Net gains/(losses) on securities and foreign exchange
Overseas investments 1(c) (587) 1,036
Australian dollar securities 1(d) (169) 49
Foreign currency 1(c) 1,829 (150)
  1,073 935
Dividend revenue
Earnings on shares in Bank for International Settlements   4 3
Fees and commissions
Banking services fees received   18 20
Other revenue
Reimbursement by Australian Government for loan management and registry expenses   1 1
Rental of Bank premises   5 4
Sales of note products   22 19
Australian notes on issue written down 1(k) 45
Other   19 13
  92 37
Total   3,076 3,170
Less:
Interest expense
Deposit liabilities 1(g) 670 513
Currency note holdings of banks 1(k) 136 136
Repurchase agreements 1(e) 123 155
  929 804
General administrative expenses
Staff costs   102 101
Special redundancy/retirement payments 12 3 3
Depreciation of property 1(f), 8 7 7
Depreciation of plant and equipment 1(f), 8 9 9
Premises and equipment 1(f) 24 25
Materials used in note production   9 8
Travel   3 3
Consultants' fees, legal fees and payments to contractors 14 4 8
Other   4 6
  165 170
Other expenses
Agency business reimbursement   2 3
Subsidiary income tax  
Cash distribution expenses   6 4
Write down of plant and equipment 1(f), 8 2
Other   17 16
  27 23
Total   1,121 997
Net Profit   1,955 2,173

Staff costs in 2003/04 include a gain of $2 million associated with the decline in the balance of the Provision for post-employment benefits (refer Note 10); in 2002/03 Staff Costs included an expense of $8 million due to an increase in the balance of the provision.