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Federal Reserve Bank
of Dallas

l l★K

HELEN E. HOLCOMB
DALLAS, TEXAS
75265-5906

FIRST VICE PRESIDENT AND
CHIEF OPERATING OFFICER

January 28, 1999
Notice 99-08

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

SUBJECT
Preliminary Figures on the Operating Income
of 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 1998. 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 additional 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.

Release Date: January 7, 1999

For immediate release
Preliminary figures indicate that operating income of the Federal Reserve Banks amounted to $28.147 billion
during 1998. Net income before payment of dividends, additions to surplus, and payments to the Treasury
totaled $27.623 billion. About $26.549 billion of this net income was distributed to the U.S. Treasury during
1998.
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 of financial
services amounted to $817.1 million.
Operating expenses of the 12 Reserve Banks and branches totaled $1.785 billion. In addition, earnings
credits in the amount of $347.5 million were granted to depository institutions under the Monetary Control Act
of 1980. Assessments to Reserve Banks for Board expenditures totaled $178 million and the cost of currency
amounted to $408.5 million.
Net additions to income amounted to $1.915 billion, resulting primarily from unrealized gains on assets
denominated in foreign currencies revalued to reflect current market exchange rates. Statutory dividends to
member banks were $343 million.
Under the policy established by the Board of Governors at the end of 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.

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Last update: January 7, 1999, 4:00 PM

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