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

 

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>