The increase, from £367.5m in 2010/11 to £385.5m last year, was caused mainly by a rise in the amount the international development charity raised in restricted income from government and other institutional funders, which went up by £21.7m to £159.8m.
Income from donations and legacies was up by £900,000, to £101.5m.
The charity spent £90.7m generating income, up from £86m in the previous year. This includes the costs of its trading activities, which came to £67.6m over the year.
The charity’s total spending was £378.7m, £6.8m less than it earned – but the funds on its balance sheet still fell because of a £16.3m payment towards its pension scheme deficit.
Karen Brown, chair of Oxfam, writes in the report that it has been able to continue to do its work effectively, despite the recession.
"The harsh external environment has meant that Oxfam has had to get better at what we do, including responding to the increased number of humanitarian disasters," she says. "Innovation has been crucial in making resources stretch further.
"In spite of the recession and increasing concern for some about the value of international development aid, Oxfam is keeping its finances on track. This is thanks to the dedication of our thousands of supporters, and to our partners, staff, volunteers and campaigners, without whom none of the other amazing work would be possible."