Australia's central bank on Thursday reported an accounting loss of A$6 billion ($3.78 billion) in the year ended June 2023, due to negative earnings resulting from higher interest rates and valuation losses from a further rise in bond yields.
That followed a loss of A$36.7 billion in the 2021-2022 financial year when the central bank's equity was first wiped out by losses suffered on pandemic-era bond buying.
As a result, its negative net equity position increased to A$17.7 billion from A$12.4 billion.
Former Governor Philip Lowe, who signed on the annual report in September, reiterated that the losses do not affect the bank's operations or its ability to perform its policy functions.
"Nonetheless, the Board will seek to restore the Bank's capital over time through the retention of future profits, rather than paying these as dividends to the government," he said.
The report showed the bank did not make any payments to the government in the last financial year.
($1 = 1.5870 Australian dollars) (Reporting by Stella Qiu; Editing by Kim Coghill)