7 – Financial result

Financial result (Million €)

 

 

H1

 

 

2019

2018

Dividends and similar income

 

21

14

Income from the disposal of shareholdings

 

4

12

Income from profit transfer agreements

 

1

1

Income from tax allocation to shareholdings

 

0

0

Income from other shareholdings

 

26

27

Expenses from loss transfer agreements

 

(30)

(11)

Write-downs on / losses from the sale of shareholdings

 

(1)

Expenses from other shareholdings

 

(31)

(11)

Net income from shareholdings

 

(5)

16

 

 

 

 

Interest income from cash and cash equivalents

 

85

70

Interest and dividend income from securities and loans

 

7

8

Interest income

 

92

78

Interest expenses

 

(334)

(238)

Interest result

 

(242)

(160)

 

 

 

 

Net interest income from overfunded pension plans and similar obligations

 

1

Income from the capitalization of borrowing costs

 

16

14

Miscellaneous financial income

 

Other financial income

 

16

15

Write-downs on / losses from securities and loans

 

(4)

(12)

Net interest expense from underfunded pension plans and similar obligations

 

(77)

(66)

Net interest expense from other long-term personnel obligations

 

(1)

(1)

Unwinding the discount on other noncurrent liabilities

 

(2)

(4)

Miscellaneous financial expenses

 

(85)

(161)

Other financial expenses

 

(169)

(244)

Other financial result

 

(153)

(229)

 

 

 

 

Financial result

 

(400)

(373)

Net income from shareholdings decreased from €16 million to minus €5 million, primarily due to higher expenses from loss transfer agreements.

The interest result declined by €82 million in the first half of 2019, from minus €160 million to minus €242 million. This was mainly attributable to higher interest expenses.

The net interest expense from underfunded pension plans and similar obligations rose year on year as a result of the higher net defined benefit liability as of January 1, 2019.

The decline in other financial expenses was primarily due to lower expenses for hedging bonds and U.S. dollar commercial paper against interest and currency risk.