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Northern Territory Treasury Corporation annual report 2011-2012



Northern Territory Treasury Corporation annual report 2011-2012


Department of Treasury and Finance reports; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).






Northern Territory Treasury Corporation -- Periodicals; Finance, Public -- Northern Territory -- Periodicals

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Northern Territory Treasury Corporation.

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6 Table 1: Performance Measurement Performance Measures 201011 Actual 201112 Estimate 201112 Actual 201213 Estimate Quantity Weighted average cost of borrowing during the year 5.29% 5.00% 4.86% 6.00% Quality Borrowing rate margin compared to industry peers1 +0.22% 0.40% variance +0.38% 0.50% variance Investment portfolio: Investment portfolio return above benchmark2 +0.31% >indices +0.32% >indices Volatility of investment portfolio return against benchmark2 +0.31% 0.25% +0.32% +0.25% Stakeholder satisfaction3 6 5 N/A 5 1 State and territory governments central financing authorities. 2 The benchmark is the weighted relevant UBS Warburg Performance indices. The composite benchmark return for 201112 was 4.70% while the Corporation achieved a return of 5.02%. 3 A stakeholder satisfaction rating was not completed prior to the Northern Territory election on 25 August 2012. Performance Measure Analysis The Corporation achieved its performance targets in all areas. Despite continued volatility experienced in the financial market during the year, the Corporations cost of borrowing target was lowered to 5percent. The actual outcome achieved for the year was 4.86percent. The weighted average cost of borrowing (including shortterm promissory notes) on outstanding issued debt at 30June2012 was 5.67 percent. Despite market interest rates declining throughout 201112, the Corporations borrowing margin increased quite significantly during the financial year. This can be primarily attributed to the ongoing uncertainty in Europe, which resulted in a deterioration in credit markets and increased demand from investors for liquidity. The Corporation accepts the widening spread reflects the increased liquidity premium demanded by investors and the Corporations strategy to increase the term and duration of bonds on issue. Governments investment portfolio returned 0.32percent above target. The portfolio was predominantly invested in shortterm securities within the existing credit limits approved by the Treasurer. Performance Summary Table 2: Financial Summary of Statement of Comprehensive Income 201112 201011 200910 200809 200708 $000 $000 $000 $000 $000 Revenue 233 453 197 262 172 750 160 175 174 063 Expenses 203 527 173 751 150 175 141 102 149 084 Profit before tax 29 926 23 511 22 575 19 073 24 979 Tax expense 8 978 7 053 6 773 5 722 7 494 Net profit after tax 20 948 16 458 15 802 13 351 17 485

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