Tarnished Note Printing in the red

A halving of export volumes and, most likely, a deluge of legal costs pushed Note Printing Australia into the red in the year to June 2012.

NPA, a subsidiary of the Reserve Bank of Australia, reported a loss of A$1.9 million over the year. In 2011, NPA reported a profit of $4.4 million.

The RBA said in its annual report that NPA delivered 139 million bank notes to other countries in 2011. Buyers included the central banks of Chile, Brunei and Papua New Guinea.

In 2011, NPA delivered 320 million banknotes.

Production for domestic use fell slightly, to 129 million banknotes.

NPA and its half-owned associate, Securency, are both respondents to criminal charges laid in September 2011.

Eight people, including the former CEO of Securency, are presently before a committal hearing in the Melbourne Magistrates Court.

The RBA did not cite the loss (or profit) for Securency in its 2012 annual report, a break from past practice. It did say there was no impairment to its investment, which the RBA recorded at $54 million.

This stake is for sale, though no news on a buyer has emerged since it was first placed on the market, in late 2010.