Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

RBNZ to pay $140 million dividend from FX gains

Thursday 29 September 2016 11:42 AM

RBNZ to pay $140 million dividend from FX gains in greener years

By Paul McBeth

Sept. 29 (BusinessDesk) - The Reserve Bank will pay a $140 million dividend to the government, using up some of the near $1 billion of investment gains built up from prior years.

The central bank paid a $510 million dividend to the government in 2015, a year when a falling kiwi dollar generated gains for the RBNZ's holdings of overseas currencies. The Reserve Bank's dividend policy is to distribute excess equity to the Crown, and should generally hold on to unrealised gains unless it believes there's a high probability of that windfall being crystallised.

The recovery in the kiwi dollar through the period meant the Reserve Bank reported net losses on foreign exchange of $201 million, compared to a net gain of $379 million a year earlier, of which $134 million was realised in 2016. However, having accumulated gains of $974 million, there was sufficient equity to allow for a return, the RBNZ's annual report shows.

The $140 million return brings the central bank's dividend in line with 2012 and 2013, with last year's half-billion dollar return an anomaly, while a $20 million payment in 2014 was smaller to allow the RBNZ to hold on to some gains to bolster its equity.

The central bank reported a profit of $52 million in the 12 months ended June 30, down from $624 million in 2015 when earnings were bolstered by FX gains. The bank's operating expenses increased to $71.2 million from $70.6 million a year earlier, due to the capitalisation of costs associated with projects to improve the payments and treasury systems and an acturial loss on a staff pension scheme. Staff costs fell 8 percent to $32 million.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Seeking 'Clarity': Crown To Appeal Southern Response Decision, Offers Costs

“It is our intention that the clarity that will come from the outcome of these proceedings will enable the Crown to work with Southern Response to provide a soundly based proactive solution to those people that are affected.” More>>

Thinking Of The Children: Plan For Classification For Commercial Video On Demand

Classifying on-demand video content will be made mandatory to bring it in line with other media and provide better guidance and protections to families and young people, says Internal Affairs Minister Tracey Martin. More>>

Cheques Out: Inland Revenue And ACC Push For Paperless

Inland Revenue and the Accident Compensation Corporation are calling ‘time’ on cheques. From March next year, IR and ACC will no longer accept payments by cheque from customers who are able to use alternative payment options. More>>

ALSO:

"Vision And Growth": Capital Markets 2029 Report

Broader participation by New Zealanders, greater access to growth capital for New Zealand enterprises, and more choices for investors drive the recommendations in the Capital Markets 2029 report released today. More>>

ALSO:

Forest & Bird: Call For More Funding To Stop Plague Of Wallabies

Wallabies could spread over a third of New Zealand within the next 50 years, unless control is increased dramatically, says Forest & Bird central North Island regional manager Rebecca Stirnemann. More>>

ALSO: