Value adjustments
In 2011, total value adjustments doubled to €59 million compared
to 2010, mainly as a result of increased impairments on equity
investments.
Value adjustments on equity investments increased sharply by €25
million to €36 million.
The additional impairments on equity investments compared to the
total value of our portfolio increased to 4.6% in 2011 (2010:
1.6%). Impairments were driven by the individual circumstances of
the concerning investments and no general trend in impairments has
been identified.
The value adjustments on loans and guarantees increased to €23
million (2010: €18 million). The increased disbursements in 2011
were the main reason for the higher value adjustments on loans, due
to the group-specific value adjustments. Counterparty specific
value adjustments declined slightly, reflecting the stable and high
quality of our loan portfolio. Management of FMO deems the level of
counterparty specific and group specific value adjustments a
sufficient reflection of the risks of the portfolio.