Soaring international demand for banknotes and a post-pandemic rush for passports propelled the Reserve Bank’s note printing business to a solid surplus last year.
Note Printing Australia Limited recorded a net profit of A$10.1 million in the 12 months to the end of June – a material improvement on the 2022 bottom line of $465,000.
Despite the healthy return, NPA did not pay the Reserve Bank a dividend.
The strong result follows several difficult years in which demand for NPA’s services withered in the Covid-hit economy.
Reserve Bank data show that the volume of Australian banknotes in circulation continued to contract in 2023, but the level of domestic run-off was easily outweighed by large orders from the Central Bank of the Philippines.
NPA’s banknote volumes increased 50 per cent in 2023 to 600 million.
While volumes are expected to be maintained in 2024, production of notes is eventually likely to taper as The Philippines establishes its own domestic polymer note production centre.
NPA also produced a record number of passports for the Department of Foreign Affairs and Trade.
A total of 2.9 million passports were produced during the year using enhanced security technology following the introduction of the “R Series” design.
The big production increases resulted in an expansion in the number of full-time staff employed at the NPA’s Victorian manufacturing facility from 237 to 249.
The company also has a casual workforce that it tapped at certain times during the year.
NPA has a five-member board, four of which are office bearers of the Reserve Bank.
Dr Ross Pilling, a former executive at multinational companies BASF and BOC, is the only director not employed by the RBA.
The NPA board is chaired by RBA Assistant Governor Susan Woods.