Notes to the consolidated statement of profit or loss

21. Net interest income

Interest income

	2024	2023
Interest on loans measured at AC	457,136	434,357
Interest on collateral delivered	11,189	14,606
Interest income related to banks	36,089	17,506
Interest on interest-bearing securities at AC	9,722	7,469
Total interest income from financial instruments measured at AC	514,136	473,938
Interest on loans measured at FVPL	50,216	43,905
Interest on interest-bearing securities at FVTPL	2,439	-
Interest on short-term deposits at FVTPL	20,992	31,605
Interest on derivatives related to asset portfolio	-31,438	-16,857
Total interest income from financial instruments measured at FVPL	42,209	58,653
Total interest income	556,345	532,591

Included in the interest income on loans is €144.9m (2023: €30.7m) related to Stage 3 loans (adjusted on basis of net carrying amount).

Interest expense

	2024	2023
Interest on debentures and notes in hedge accounting	-143,642	-106,940
Interest on debentures and notes not in hedge accounting	-90,561	-63,329
Interest on short-term credits	-3,220	-
Total interest expense from financial instruments measured at AC	-237,423	-170,269
Interest on derivatives related to funding portfolio	-92,708	-140,756
Total interest expense from financial instruments measured at FVPL	-92,708	-140,756
Interest on leases	-97	-122
Other interest expenses	-97	-122
Total interest expense	-330,228	-311,147

22. Dividend income

Dividend income relates to income from equity investments.

	2024	2023
Dividend income direct investments	16,219	18,587
Dividend income fund investments	12,952	15,894
Total dividend income	29,171	34,481

23. Results from equity investments

	2024	2023
Results from equity investments
Unrealized results from capital results	45,333	13,208
Unrealized results from FX conversions - capital results	4,485	-2,005
Unrealized results from FX conversions - cost price	111,648	-59,526
Net results from fair value re-measurements	161,466	-48,323
Results from sales
Realized results	40,858	42,573
Release unrealized results	-63,895	-34,064
Net results from sales	-23,037	8,509
Net results from equity investments	138,429	-39,814

24. Net fee and commission income

	2024	2023
Prepayment fees	1,998	347
Fees for FVPL loans	1,080	691
Administration fees	1,875	1,674
Other fees (for example: arrangement, cancellation and waiver fees)	4,719	5,025
Total fee and commission income	9,672	7,737
Custodian fees and charges for the early repayment of debt securities	-796	-969
Guarantee fees related to unfunded risk participants	-12,771	-13,112
Other fee expenses	-159	-121
Total fee and commission expense	-13,726	-14,202
Net fee and commission income	-4,054	-6,465

25. Results from financial transactions

	2024	2023
Gains/(losses) on remeasurement on valuation of hedged items	-41,426	-138,699
Gains/(losses) on remeasurement of hedging instruments	48,680	134,237
Net result on hedge accounting	7,254	-4,462
Result on sale and valuation of treasury derivatives not under hedge accounting	-20,929	-23,096
Result on sale and valuation of derivatives related to asset portfolio	-5,878	2,933
Result on sale and valuation of loans at FVPL	11,734	14,662
Result on sale and valuation of securities at FVPL	1,791	-
Net result on financial instruments mandatory at FVPL	-13,282	-5,501
Foreign exchange results loans at FVPL	34,462	-15,705
Foreign exchange results derivatives	-102,932	57,500
Foreign exchange results on other financial assets/liabilities	74,499	-35,500
Net foreign exchange results	6,029	6,295
Other financial results	-19	57
Other changes	10,622	11,240
Other results from financial transactions	10,603	11,297
Net result from financial transactions	10,604	7,629

Other changes relate to the remeasurement of liabilities for FMO's obligations to the public fund programs managed on behalf of the Dutch State.

26. Remuneration for services rendered

	2024	2023
Funds and programs managed on behalf of the State:
- MASSIF	10,775	10,073
- Building Prospects	9,594	9,456
- Access to Energy Fund	3,657	3,471
Syndication fees, remuneration from directorships and others	11,473	8,335
Total remuneration for services rendered	35,499	31,335

Remuneration for managing funds and programs is assessed for market conformity and expressed in gross amounts. Related management expenses are included in operating expenses.

27. Gains and losses due to derecognition

Gains and losses due to derecognition arise from loans measured at amortized cost when sold to a third party or when terms and conditions of a loan arrangement have been modified significantly.

	2024	2023
Gains and losses due to derecognition	1,863	2,464
Total gains and losses due to derecognition	1,863	2,464

28. Other operating income

	2024	2023
Other operating income	-	79
Total other operating income	-	79

29. Staff costs

The number of FTE on December 31, 2024, amounted to 826 (2023: 773 FTEs). All FTE are employed in the Netherlands except for 1 FTE, which is employed in our Costa Rican office.

	2024	2023
Salaries	-83,400	-74,487
Social security costs	-10,889	-9,433
Pension costs	-23,848	-16,377
Temporaries	-18,251	-17,805
Travel and subsistence allowances	-5,257	-5,069
Other personnel expenses	-3,319	-4,289
Total staff costs	-144,964	-127,460

The Pension costs line item includes an amount of €17.7m (2023 €15.7m) related to the defined contribution plan expenses.

Other personnel expenses include reimbursements on staff costs amounting to €5.9m (2023 €4.9m) which relate to activities performed on behalf of various government agencies. These reimbursements are treated as government grants related to income and are presented as a reduction against staff costs.

30. Administrative expenses

	2024	2023
IT expenses	-11,120	-11,172
Advisory costs	-12,914	-14,741
Other operational expenses	-12,507	-13,818
Total administrative expenses	-36,541	-39,731

These expenses consist primarily of services from third parties and other operational expenses. The remuneration paid to the Supervisory Board is included in these expenses. At December 31, 2024, the Supervisory Board consisted of six members (2023: five). The members of the Supervisory Board were paid a total remuneration of €140k (2023: €120k).

With reference to Section 2:382a(1) and (2) of the Netherlands Civil Code, the following fees for the financial year have been charged by EY Accountants B.V. (2023: EY Accountants B.V.) to the company and its subsidiaries. Other assurance services include assurance in respect of sustainability disclosures, regulatory reporting, specific financial reporting of government and EU funds and capital market transactions. EY Accountants B.V. has not provided any non-assurance services to FMO.

Total fees charged by auditors

	2024	2023
Statutory audit of annual accounts	-1,138	-908
Other assurance services	-1,329	-1,099
Total	-2,467	-2,007

31. Income taxes

Income tax by type

	2024	2023
Current income taxes	-11,875	2,869
Deferred income taxes	-3,488	2,081
Total income tax	-15,363	4,950

The reconciliation of the statutory income tax rate to the effective income tax rate is as follows:

	2024	2023
Profit/(loss) before taxation	312,597	59,972

Income taxes at statutory rate of 25.8% (2023 25.8%)	-80,650	-15,473
Increase/decrease resulting from:
Settlement with local withholding taxes	3,049	2,510
Non-taxable income (participation exemption facility)	62,639	15,034
Tax adjustments to prior periods	-293	2,977
Other	-108	-98
Total income tax	-15,363	4,950
Effective income tax rate	4.9%	-8.3%

Current income tax

FMO paid €18,681 (2023: €15,501) to the tax authorities. The remaining current income tax receivable amounts to €13,297 (2023: €29,634). Per year end 2024 unused tax losses amount to €0 (2023: €0) and unused tax credits amount to €0 (2023: €0).

Deferred tax

FMO’s deferred income tax assets and liabilities are summarized as follows:

	2024	2023
Deferred tax assets
Pension provision	2,816	2,154
Actuarial gains and losses on defined benefit plans	1,523	3,363
Unused tax credits	1,508	5,655
Liability Government Funds	3,173	-
Leases	55	58
Total deferred tax assets	9,075	11,230
Deferred tax liabilities
Fair value movements equity investments	-510	-7,943
Total deferred tax liabilities	-510	-7,943
Net balance at December 31	8,565	3,287