1 January–31 December
|NET INTEREST INCOME||4||915.2||969.5|
|Net result of financial transactions||6||101.9||38.7|
|Other operating income||7||1.3||0.2|
TOTAL OPERATING INCOME
|General administration expenses||8||-274.7||-239.3|
|Depreciation of intangible fixed assets||17||-0.4||–|
|Depreciation of tangible fixed assets||18||-2.9||-2.4|
|Other operating expenses||9||-5.9||-3.5|
Statement of comprehensive income
1 January–31 December
|OTHER COMPREHENSIVE INCOME|
|Items that may subsequently be reclassified to the income statement|
|Available-for-sale financial assets||0.8||-8.3|
|Available-for-sale financial assets, transferred to the income statement||-6.8||1.0|
|Tax attributable to items that may subsequently be reclassified to the income statement||10||1.3||1.6|
|OTHER COMPREHENSIVE INCOME||-4.7||-5.7|
TOTAL COMPREHENSIVE INCOME
Comments on the income statement
Total operating income rose by 1 percent to SEK 1,013.3 (1,002.8) million. Operating in-come includes net interest income, commission expenses, net result of financial transactions and other operating income.
Net interest income
Net interest income decreased to SEK 915.2 (969.5) million. The decrease is due a reduction of margins in lending operations, due to increased competition.
Net result of financial transactions
The net result of financial transactions amounted to SEK 101.9 (38.7) million. The result was affected by unrealised changes in market value of SEK 65.4 (17.6) million, but also by the buy-back of own bonds and the sale of financial instruments in the amount of SEK 31.5 (15.0) million. For further information, see Note 6.
In connection with sales of financial instruments, the Company has transferred SEK +6.8 (-1.0) million in profits from other comprehensive income to profit/loss for the year. The profit from buybacks of Kommuninvest’s bonds amounted to SEK 0.2 (13.3) million.
Costs amounted to SEK 283.9 (245.2) million, including the stability fee of SEK 110.7 (99.0) million. The stability fee is calculated based on the size of the balance sheet. The stability fee accounted for 39 (40) percent of Kommuninvest’s total costs.
Excluding the stability fee, expenses amounted to SEK 173.2 (146.2) million, of which personnel expenses accounted for SEK 96.1 (80.7) million and other expenses for SEK 77.1 (65.5) million. The increase in expenses is explained entirely by the increase in personnel and consulting costs related to the introduction of new regulations from the EBA, the European Banking Authority.
Major changes in the regulatory systems and development of Kommuninvest’s national and international borrowing programmes, place more stringent demands on operations, generally leading to higher costs. In parallel, projects and activities are in place to streamline the operations, contributing to lower costs over time.
Credit losses totalled SEK – (–) million.
|Year||Operating profit (SEK mn)|
|Payroll expenses, SEK mn||Other admin expenses, SEK mn||Stability fee, SEK mn||Depreciation, SEK mn||Other oper. expenses, SEK mn|||Admin. expenses excl. stability fee in relation to lending volume, basis points|
Kommuninvest’s operating profit, that is profit before taxes, amounted to SEK 729.4 (757.6) million. Operating profit includes unrealised changes in market value of SEK 65.4 (17.6) million.
Operating profit excluding the effect of unrealised market value changes was SEK 664.0 (740.0) million. Profit after taxes amounted to SEK 568.4 (590.7) million.
The tax expense for the year recognised in the income statement amounted to SEK 161.0 (166.9) million. The payment of group contributions reduced taxable earnings, which for 2014 amounted to SEK – (–) million. See also Note 10.