11. Financial Result
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
Million € |
2024 |
2023 |
|---|---|---|
Interest income from cash and cash equivalents |
339 |
299 |
Interest and dividend income from securities and loans |
32 |
23 |
Interest income |
371 |
322 |
Interest expenses |
–929 |
–860 |
Interest result |
–558 |
–538 |
|
|
|
|
|
|
Reversals of write-downs on / income from securities and loans |
18 |
40 |
Net interest income from other long-term personnel obligations |
– |
– |
Income from the capitalization of borrowing costs |
147 |
80 |
Interest income on income taxes |
74 |
76 |
Miscellaneous financial income |
29 |
3 |
Other financial income |
267 |
199 |
Write-downs on / losses from securities and loans |
–7 |
–11 |
Net interest expense from underfunded pension plans and similar obligations |
–99 |
–85 |
Unwinding the discount on other noncurrent liabilities |
–19 |
–18 |
Interest expenses on income taxes |
–7 |
–8 |
Miscellaneous financial expenses |
–141 |
–159 |
Other financial expenses |
–271 |
–281 |
Other financial result |
–5 |
–82 |
|
|
|
|
|
|
Financial result |
–563 |
–620 |
Interest expenses rose primarily because of increased interest rates, the higher balance of financial indebtedness as well as the associated hedging instruments.
The decrease in reversals of write-downs on / income from securities and loans resulted from lower income from the fair value measurement of securities.
The higher miscellaneous financial income resulted from the measurement of an option issued as part of a divestiture.
Income from the capitalization of borrowing costs rose due to the higher borrowing cost rate and increased volume in qualifying assets mainly from construction of the new Verbund site in Zhanjiang, China.
The decrease in miscellaneous financial expenses was primarily due to lower net expenses associated with the translation of loans and the measurement of the corresponding hedging instruments against interest and currency risks.
This content fulfills the Disclosure Requirements of the European Sustainability Reporting Standards (ESRS). The ESRS Index gives an overview of the references to the ESRSs in this report.