D Notes to the income statement
 
D1 Interest income and expenses
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Interest income        
Interests from loans passed on to the customers 114,650 114,190 64,500 55,519
- Domestic financing 36,167 36,043 36,000 34,703
- Export financing 78,483 78,147 28,499 20,815
Subsidies passed on to customers 767 1,540 767 1,540
- Regional interest subsidy 1 113 1 113
- Interest subsidy to special loans 765 1,426 765 1,426
- Interest subsidy from the ERDF 0 0 0 0
- National interest subsidy (ERDF) 0 0 0 0
Other interest income -1,523 -548 -2,236 -1,356
- Interest on export credit guarantee and special guarantee receivables 495 487 495 487
- Interest on guarantee receivables 1,641 1,612 1,641 1,612
- On receivables from credit institutions 2,333 1,057 1,804 449
- On debt securities, available-for-sale -6,177 -3,905 -6,177 -3,905
- On other 185 201 0 2
Total 113,894 115,182 63,030 55,702
Interest expenses        
On liabilities to credit institutions -3,761 -986 -3,761 -986
On liabilities to other institutions -44,211 -51,769 0 0
On debt securities in issue -16,585 -10,617 -16,585 -10,617
Other interest expenses -2,911 -1,519 -3,172 -1,673
Total -67,468 -64,892 -23,518 -13,277
Net interest income 46,426 50,290 39,512 42,425
Interest income on financial assets which are not carried at fair value 120,071 119,087 69,207 59,607
Interest expenses on financial liabilities which are not carried at fair value -47,972 -52,756 -3,761 -986
Interest income include interest accrued on impaired loans 1,752 2,398 1,752 2,398
 
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 63,906 77,254 63,906 77,254
             
             
D2 Net fee and commission income
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Fee and commission income        
From export credit guarantees and special guarantees 106,210 120,450 106,210 120,450
From other guarantees 27,678 26,451 27,678 26,451
From credit operations 17,114 18,227 16,973 17,478
From other 510 561 -12 60
Total 151,513 165,689 150,849 164,438
             
All fee and commission income is from financial assets which are not carried at fair value totalled.
             
Fee and commission expenses        
From reinsurance -21,720 -20,926 -21,720 -20,926
From borrowing -710 -366 -710 -366
From payment transactions -251 -247 -250 -245
From other -1,727 -200 -1,727 -200
Total -24,408 -21,740 -24,407 -21,737
Net fee and commission income 127,105 143,950 126,442 142,701
Fee and commission income from financial assets not carried at fair value 151,513 165,689 150,849 164,438
Fee and commission expenses from financial assets which are not carried at fair value totalled -23,698 -21,373 -23,697 -21,371
             
             
D3 Gains and losses from financial instruments carried at fair value through profit or loss
             
The format of the disclosure has been changed from previous years. Comparative figures have been updated to reflect the new disclosure format.
  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 2017            
From financial instruments carried at fair value through profit or loss            
Derivatives   -36,922 -36,922   -4,030 -4,030
Liabilities carried at fair value   31,041 31,041   5,045 5,045
Shares and participations -1,469 7,903 6,434      
Total for financial instruments carried at fair value through profit or loss -1,469 2,022 553 0 1,015 1,015
             
By categories of financial instruments, IAS 39            
Liabilities carried at fair value -1,469 2,022 553   1,015 1,015
Total for financial instruments carried at fair value through profit or loss -1,469 2,022 553 0 1,015 1,015
Foreign exchange gains(+)/ and losses (-)     -29     -43
Total for financial instruments carried at fair value through profit or loss and foreign exchange gains and losses     524     972
             
31 Dec 2016            
From financial instruments carried at fair value through profit or loss            
Derivatives   18,104 18,104   -1,041 -1,041
Liabilities carried at fair value   -29,059 -29,059   809 809
Shares and participations -7,797 -2,688 -10,485      
Total for financial instruments carried at fair value through profit or loss -7,797 -13,643 -21,440 0 -232 -232
             
By categories of financial instruments, IAS 39            
Liabilities carried at fair value -7,797 -13,643 -21,440   -232 -232
Total for financial instruments carried at fair value through profit or loss -7,797 -13,643 -21,440 0 -232 -232
Foreign exchange gains(+)/ and losses (-)     1,926     1,955
Total for financial instruments carried at fair value through profit or loss and foreign exchange gains and losses     -19,514     1,723
             
In its financial statements, Finnvera plc recognises Finnish Export Credit Ltd’s share of the change in the fair value of liabilities and derivatives either as a liability to or as a receivable from Finnish Export Credit Ltd, depending on the final outcome of the change. Finnish Export Credit is Finnvera’s subsidiary.
             
             
D4 Net income from investments
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Available-for-sale financial assets        
Shares and participations 8 0 8 0
- Gains/losses 0 0 0 0
- Impairment losses 8 0 8 0
Debt securities 176 0 176 0
- Gains/losses 176 0 176 0
- Impairment losses 0 0 0 0
Dividends 15 296 15 21
Total 198 296 198 20
             
             
D5 Other operating income
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Fee for the management of the old liability 282 183 282 183
Management fees from subsidiaries (internal charging) 0 0 2,449 2,588
Rental income 6 33 55 123
Sales profit/loss -124 479 -124 479
Credit for deficit in ERDF venture capital investments 0 1,615 0 0
Cancellation of a subordinated loan granted by the State for venture capital investments 0 9,153 0 9,153
Profit on the sale of a subsidiary (Note E23) 303 839 0 0
Other 189 144 152 90
Total 657 12,445 2,814 12,617
             
             
D6 Employee expenses
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Wages and salaries -23,243 -23,671 -22,883 -22,924
Social security costs -5,464 -6,188 -5,414 -5,929
Pension costs        
- Defined contribution plans -4,002 -4,144 -3,967 -3,921
- Defined benefit plans -291 -361 -291 -361
Other social security costs -1,172 -1,683 -1,156 -1,647
Total -28,707 -29,860 -28,297 -28,853
             
             
D7 Auditor's fees
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Fees for auditing -72 -93 -59 -80
Fees for expert services provided by auditors -97 -100 -97 -100
Total -170 -193 -156 -180
             
             
D8 Depreciation and amortisation on tangible and intangible assets
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Depreciation and amortisation        
Intangible assets -1,516 -1,079 -1,514 -1,066
Property, plant and equipment -284 -607 -284 -607
- Properties 0 0 0 0
- Machinery and equipment -284 -607 -284 -607
- Other tangible assets 0 0 0 0
Total -1,800 -1,686 -1,798 -1,672
             
             
D9 Other operating expenses
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Rental expenses -2,497 -3,436 -2,497 -3,436
Expenses from property in own use -247 -890 -247 -890
Return of the surplus in export credit financing to FEC 0 0 -6,305 -10,810
Valuation loss on long-term assets (Note E23) 0 0 0 -7,221
Total -2,744 -4,326 -9,050 -22,356
             
             
D10 Impairment losses on receivables, guarantee losses and impairment losses on other financial assets
             
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Impairment losses on receivables and guarantee losses        
Impairment losses on receivables -24,928 -15,039 -24,748 -15,231
- Credit losses materialised -23,659 -28,800 -23,659 -28,992
- Change in impairment of individually assessed loans -3,784 7,842 -3,784 7,842
- Change in impairment of collectively assessed loans 2,516 5,918 2,696 5,918
         
Guarantee losses -14,201 -11,431 -14,201 -11,431
- Guarantee losses materialised -14,148 -18,423 -14,148 -18,423
- Change in individually assessed provisions for losses -2,252 3,217 -2,252 3,217
- Change in collectively assessed provisions for losses 2,199 3,775 2,199 3,775
         
Other receivables 0 -89 0 0
- Credit losses realised 0 -89 0 0
Total, gross -39,130 -26,559 -38,949 -26,662
         
The State’s and the ERDF’s share of the credit and guarantee losses materialised 1 22,833 28,272 22,833 28,272
Total, net -16,297 1,714 -16,116 1,611
 
1 The state and the ERDF compensate Finnvera Plc for the final losses on loans and guarantees granted without a securing collateral. On 31 December 2017 these loans and guarantees totalled EUR 2,127 (2,138) million. The compensation was 59.09% (57.69%) of the credit and guarantee losses recognised during the period.
 
Export credit guarantee and special guarantee losses        
Guarantee losses -2,291 -67,416 -2,291 -67,416
- Net compensation -6,323 -67,742 -6,323 -67,742
- Provisions for losses on export credit guarantees and special guarantees 4,032 326 4,032 326
Total -2,291 -67,416 -2,291 -67,416
         
Impairment losses on credits and guarantee losses in total -18,588 -65,702 -18,407 -65,805
         
Impairment losses on financial assets available for sale        
Write-off for the shares of Seed Fund Vera Ltd 0 -1,932 0 -1,932
Total 0 -1,932 0 -1,932
             
             
D11 Income tax expense
             
  Finnvera Group
(EUR 1,000) 31 Dec 2017 31 Dec 2016
Current period -2,208 -3,156
Adjustment for prior periods 0 0
Deferred taxes (Note E8) 97 4,114
Total -2,111 958
 
By virtue of §20 of the Income Tax Act, Finnvera plc is exempt from income tax.