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Sydney - The Reserve Bank of Australia said it posted underlying earnings of A$1.38 billion ($1.65 billion) for the 2006-07 financial year.
The result was an improvement on the previous financial year when the bank recorded earnings of A$1.156 billion.
The increase in earnings reflected a global rise in interest rates, which continued the trend of recent years, following a period in which rates had declined to unusually low levels, the bank said in its annual report.
Valuation losses had been a particularly important influence on its earnings in the past financial year.
"This was because the exchange rate appreciated by 12 per cent in weighted-average terms against the currencies in which Australia's international reserves are invested," the bank said.
"Bond yields also rose around the world."
The bank paid a dividend of A$1.085 billion to the Federal Government.
AAP
