Australia’s central bank reported its fourth consecutive year of accounting losses in 2024, as the impact of its pandemic interventions continues to affect its balance sheet. For the year ending June 30, the bank recorded a loss of A$4.2 billion (approximately $2.78 billion). This loss stems from the interest earned on its portfolio of bonds and other assets—most of which were purchased at low interest rates during the pandemic—being significantly lower than the interest it pays to its commercial bank depositors.
These cumulative losses, which began in 2021, have resulted in the bank’s equity being completely wiped out. However, this negative equity does not hinder the bank’s monetary policy operations. As of June 30, the bank’s negative equity position stood at A$20.4 billion.
Governor Michele Bullock noted in her introduction to the 2023-2024 annual report, “Negative equity does not affect our operations or our ability to perform policy functions, but the Reserve Bank Board considers it important that the RBA’s capital is restored over time.”
The Treasurer has expressed ongoing support for rebuilding capital by retaining future profits. The bank also reported an A$8.3 billion loss for underlying earnings, alongside a A$4.2 billion valuation gain, largely due to changes in its domestic government bond and foreign currency positions.