D Notes to the income statement
D1 Interest income and expences | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Interest income | |||||||
Loans to customers | 106,963 | 97,356 | 45,950 | 43,247 | |||
- Domestic financing | 106,963 | 44,274 | 45,950 | 43,145 | |||
- Export financing | 0 | 53,082 | 0 | 102 | |||
Subsidies passed on to customers | 6,397 | 8,808 | 6,397 | 8,808 | |||
- Regional interest subsidy | 688 | 954 | 688 | 954 | |||
- Interest subsidy to special loans | 3,529 | 4,136 | 3,529 | 4,136 | |||
- Interest subsidy from the ERDF | 1,047 | 1,774 | 1,047 | 1,774 | |||
- National interest subsidy (ERDF) | 1,133 | 1,945 | 1,133 | 1,945 | |||
Other interest income | -335 | 4,020 | -651 | 3,717 | |||
- Interest on export credit guarantee and special guarantee receivables | 551 | 213 | 551 | 213 | |||
- Interest on guarantee receivables | 1,989 | 1,710 | 1,989 | 1,710 | |||
- On receivables from credit institutions | -4,441 | 1,207 | -4,606 | 1,072 | |||
- On debt securities, available-for-sale | 1,404 | 717 | 1,404 | 695 | |||
- On other | 163 | 173 | 12 | 27 | |||
Total | 113,025 | 110,184 | 51,696 | 55,773 | |||
Interest expenses | |||||||
On liabilities to credit institutions | -2 | -292 | -2 | -292 | |||
On liabilities to other institutions | -56,229 | -51,314 | 0 | 24 | |||
On debt securities in issue | -4,751 | -2,702 | -4,751 | -2,702 | |||
Other interest expenses | -285 | -313 | -246 | -299 | |||
Total | -61,267 | -54,620 | -4,999 | -3,268 | |||
Net interest income | 51,758 | 55,564 | 46,697 | 52,504 | |||
Interest income on financial assets which are not carried at fair value totalled | 113,025 | 110,184 | 51,696 | 55,773 | |||
Interest expenses on financial liabilities which are not carried at fair value totalled | 56,007 | 51,533 | 0 | 426 | |||
Interest income include interest accrued on impaired loans | 5,165 | 2,866 | 5,165 | 2,866 | |||
Interest subsidy from the state and the European Regional Development Fund | |||||||
The interest subsidy passed on to customers is calculated on the basis of the passage of time, similar to interest, and is presented as a separate item under interest income in the income statement. In 2001 the Group began to grant investment and working capital loans that include interest subsidy from the European Regional Development Fund (ERDF), as well as national interest subsidy granted by the State of Finland. | |||||||
Interest-subsidised loans and guarantees in total | 274,307 | 436,220 | 274,307 | 436,220 | |||
D2 Fee and commission income and expences | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Fee and commission income | |||||||
From export credit guarantees and special guarantees | 107,771 | 103,994 | 107,771 | 103,994 | |||
From other guarantees | 24,876 | 24,982 | 24,876 | 24,982 | |||
From credit operations | 13,077 | 9,333 | 12,599 | 8,795 | |||
From other | 572 | 1,206 | 17 | 25 | |||
Total | 146,295 | 139,515 | 145,263 | 137,796 | |||
All fee and commission income is from financial assets which are not carried at fair value totalled | |||||||
Fee and commission expenses | |||||||
From reinsurance | -6,996 | -4,439 | -6,996 | -4,439 | |||
From borrowing | -761 | -755 | -761 | -755 | |||
From payment transactions | -51 | -37 | -49 | -36 | |||
From other | 0 | 0 | 0 | 0 | |||
Total | -7,808 | -5,231 | -7,806 | -5,229 | |||
Net fee and commission income | 138,487 | 134,284 | 137,457 | 132,567 | |||
Fee and commission income from financial assets not carried at fair value | 146,295 | 139,515 | 145,263 | 137,796 | |||
Fee and commission expenses from financial assets which are not carried at fair value totalled | -7,047 | -4,476 | -7,045 | -4,475 | |||
D3 Gains and losses from financial instruments carried at fair value through profit or loss |
|||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | Gains and losses from sales |
Changes in fair value | Total | Gains and losses from sales | Changes in fair value | Total | |
31 Dec 2014 | |||||||
From financial instruments carried at fair value through profit or loss | |||||||
Derivatives | 0 | 17,399 | 17,399 | 0 | 8,792 | 8,792 | |
Liabilities carried at fair value | 0 | -20,932 | -20,932 | 0 | -9,752 | -9,752 | |
Shares and participations | -717 | -6,087 | -6,803 | 0 | 0 | 0 | |
Translation differences | 33,811 | -33,485 | 327 | 35,824 | -35,419 | 404 | |
Total, net | 33,095 | -43,104 | -10,009 | 35,824 | -36,380 | -556 | |
By categories of financial instruments, IAS 39 | |||||||
Liabilities carried at fair value | -717 | -103,858 | -104,575 | 0 | -95,200 | -95,200 | |
Translation differences | 33,811 | 60,755 | 94,566 | 35,824 | 58,820 | 94,644 | |
Total, net | 33,095 | -43,104 | -10,009 | 35,824 | -36,380 | -556 | |
31 Dec 2013 | |||||||
From financial instruments carried at fair value through profit or loss | |||||||
Derivatives | 0 | -100,634 | -100,634 | 0 | -85,230 | -85,230 | |
Liabilities carried at fair value | 0 | 101,827 | 101,827 | 0 | 87,347 | 87,347 | |
Shares and participations | 2,270 | -4,877 | -2,607 | 0 | 0 | 0 | |
Translation differences | -3,183 | 2,920 | -264 | -4,929 | 4,632 | -297 | |
Total, net | -913 | -765 | -1,678 | -4,929 | 6,749 | 1,821 | |
By categories of financial instruments, IAS 39 | |||||||
Liabilities carried at fair value | 2,270 | -3,684 | -1,414 | 0 | 2,117 | 2,117 | |
Translation differences | -3,183 | 2,920 | -264 | -4,929 | 4,632 | -297 | |
Total, net | -913 | -765 | -1,678 | -4,929 | 6,749 | 1,821 | |
D4 Net income from investments | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Available-for-sale financial assets | |||||||
Shares and participations | -219 | -61 | -219 | -61 | |||
- Gains/losses | -219 | 81 | -219 | 81 | |||
- Impairment losses | 0 | -142 | 0 | -142 | |||
Debt securities | 188 | 0 | -91 | 0 | |||
- Gains/losses | -91 | 0 | -91 | 0 | |||
- Impairment losses | 278 | 0 | 0 | 0 | |||
Dividends | 978 | 970 | 12 | 24 | |||
Total | 947 | 909 | -298 | -37 | |||
Share of profit of associates | -2 | 0 | 0 | 0 | |||
Total net income from investments | 945 | 909 | -298 | -37 | |||
D5 Other operating income | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Fee for the management of the old liability | 180 | 194 | 180 | 194 | |||
Management fee for the handling of ERDF loans | 94 | 154 | 94 | 154 | |||
Management fees from subsidiaries (internal charging) | 0 | 0 | 2,359 | 1,218 | |||
Rental income | 170 | 187 | 341 | 356 | |||
Sales profit/loss | 391 | -119 | 391 | 92 | |||
Credit for deficit in ERDF venture capital investments | 606 | 236 | 0 | 0 | |||
Other | 115 | 198 | 26 | 160 | |||
Total | 1,556 | 850 | 3,391 | 2,174 | |||
D6 Employee expenses | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Wages and salaries | -22,801 | -23,444 | -21,642 | -22,203 | |||
Social security costs | -5,272 | -6,436 | -5,017 | -6,162 | |||
Pension costs | |||||||
- Defined contribution plans | -3,555 | -3,907 | -3,345 | -3,675 | |||
- Defined benefit plans | -496 | -1,021 | -496 | -1,021 | |||
Other social security costs | -1,221 | -1,508 | -1,177 | -1,466 | |||
Total | -28,073 | -29,880 | -26,659 | -28,366 | |||
D7 Auditor's fees | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Fees for auditing | -73 | -70 | -63 | -56 | |||
Fees for expert services provided by auditors | -157 | -159 | -157 | -159 | |||
Total | -230 | -229 | -220 | -215 | |||
D8 Depreciation and amortisation on tangible and intangible assets | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Depreciation and amortization | |||||||
Intangible assets | -691 | -718 | -648 | -679 | |||
Property, plant and equipment | -356 | -428 | -356 | -428 | |||
- Properties | 0 | -5 | 0 | -5 | |||
- Machinery and equipment | -292 | -423 | -292 | -423 | |||
- Other tangible assets | -64 | 0 | -64 | 0 | |||
Total | -1,047 | -1,146 | -1,005 | -1,106 | |||
D9 Other operating expenses | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Rental expenses | -4,313 | -4,325 | -4,313 | -4,312 | |||
Expenses from property in own use | -782 | -1,144 | -782 | -1,144 | |||
Return of the surplus in export credit financing to FEC | 0 | 0 | -6,185 | -1,616 | |||
Other expenses | -2 | -1,792 | 0 | -879 | |||
Total | -5,097 | -7,261 | -11,280 | -7,951 | |||
D10 Impairment losses on receivables, guarantee losses | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | |||
Impairment losses on receivables and guarantee losses | |||||||
Impairment losses on receivables | -69,431 | -64,071 | -68,398 | -62,595 | |||
- Credit losses materialised | -84,843 | -55,280 | -83,810 | -53,804 | |||
- Change in impairment of individually assessed loans | 12,901 | -2,550 | 12,901 | -2,550 | |||
- Change in impairment of collectively assessed loans | 2,511 | -6,241 | 2,511 | -6,241 | |||
Guarantee losses | -35,943 | -36,798 | -35,943 | -36,798 | |||
- Guarantee losses materialised | -33,596 | -27,467 | -33,596 | -27,467 | |||
- Change in individually assessed provisions for losses | -583 | -6,554 | -583 | -6,554 | |||
- Change in collectively assessed provisions for losses | -1,764 | -2,778 | -1,764 | -2,778 | |||
Total, gross | -105,374 | -100,869 | -104,341 | -99,394 | |||
The State’s and the ERDF’s share of the credit and guarantee losses materialised *) | 63,708 | 47,976 | 63,708 | 47,976 | |||
Total, net | -41,666 | -52,893 | -40,632 | -51,417 | |||
*) The state and the ERDF compensate Finnvera Plc for the final losses on loans and guarantees granted without a securing collateral. On 31 December 2014 these loans and guarantees totalled EUR 2,299 (2,525) million. The compensation was 53,43% (56.5%) of the credit and guarantee losses recognized during the period. | |||||||
Losses on export credit guarantees and special guarantees | |||||||
Guarantee losses | 7,848 | -10,693 | 7,848 | -10,693 | |||
- Claims paid | -2,136 | -3,538 | -2,136 | -3,538 | |||
- Accumulated recoveries | 2,067 | 2,702 | 2,067 | 2,702 | |||
- Change in recovery receivables | -4,414 | 800 | -4,414 | 800 | |||
- Provisions for losses on export credit guarantees and special guarantees | 12,332 | -10,657 | 12,332 | -10,657 | |||
Total | 7,848 | -10,693 | 7,848 | -10,693 | |||
Impairment losses on credits and guarantee losses in total | -33,817 | -63,586 | -32,784 | -62,110 | |||
Impairment losses on other financial assets | |||||||
Write-off for the shares of Seed Fund Vera Ltd | 0 | 0 | -9,000 | -9,003 | |||
Total | 0 | 0 | -9,000 | -9,003 | |||
D11 Income tax expense | |||||||
Finnvera Group | |||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | |||||
Current period | -1,639 | -1,002 | |||||
Adjustment for prior periods | 2 | 0 | |||||
Deferred taxes | 924 | 436 | |||||
Total | -713 | -566 | |||||
By virtue of §20 of the Income Tax Act, Finnvera plc is exempt from income tax. |