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Federal Reserve Bank
of

Dallas

HELEN E. HOLCOMB
FIRST VICE PRESIDENT AND

DALLAS, TEXAS

CHIEF OPERATING OFFICER

7526 5 -59 0 6

February 9, 1998
Notice 98-12

TO:

The Chief Operating Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District

SUBJECT
Preliminary Figures on 1997 Operating Income
of the Federal Reserve Banks
DETAILS
The Board of Governors of the Federal Reserve System has announced preliminary
figures on the operating income of the Federal Reserve Banks during 1997. Federal Reserve
System income is derived primarily from interest earned on U.S. government securities that the
Federal Reserve has acquired through open market operations.
ATTACHMENT
A copy of the Board’s press release announcing the preliminary figures is attached.
MORE INFORMATION
For further information, please contact Claude Davis at (214) 922-5607. For addi­
tional copies of this Bank’s notice, please contact the Public Affairs Department at (214)
922-5254.
Sincerely,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

F E D E R A ^R E S E R V ^ressreleas^^^
For immediate release

January 8, 1998

Preliminary figures indicate that operating income o f the Federal Reserve Banks
amounted to $26,916 billion during 1997. Net income before payment o f dividends, additions to
surplus, and payments to the Treasury totaled $21,793 billion. About $20,662 billion o f this net
income was distributed to the U.S. Treasury during 1997.
Federal Reserve System income is derived primarily from interest earned on U.S.
government securities that the Federal Reserve has acquired through open market operations.
Income from the provision o f financial services amounted to $790 million.
Operating expenses o f the 12 Reserve Banks and branches totaled $1,813 billion.
In addition, earnings credits in the amount o f $361.6 million were granted to depository
institutions under the Monetary Control Act o f 1980. Assessments to Reserve Banks for Board
expenditures totaled $174.4 million and the cost o f currency amounted to $364.5 million.
Net deductions from income amounted to $2,577 billion, resulting primarily from
unrealized losses on assets denominated in foreign currencies revalued to reflect current market
exchange rates. Statutory dividends to member banks were $299.7 million.
Under the policy established by the Board o f Governors at the end o f 1964, all net
income after the statutory dividend to member banks and the amount necessary to equate surplus
to paid-in capital is transferred to the U.S. Treasury. In October 1996 and October 1997 the
Reserve Banks also transferred $106 million and $107 million, respectively, from their surplus
accounts to the Treasury, as statutorily required.

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102