Notes to the consolidated statement of profit or loss

20. Net interest income

Interest income

Included in the interest income on loans is €13.7 million (2024: €19.0 million) related to Stage 3 loans (adjusted on basis of net carrying amount).

Interest expense

21. Dividend income

Dividend income relates to income from equity investments.

22. Results from equity investments

The net result on sales represents the reversal of accumulated previously recognised unrealised fair value movements on the instruments sold and the actual realised result on sale of the instrument compared to the initial cost of the investment. The negative result predominantly reflects a small number of loss‑making transactions, along with minor timing effects. Unrealized results from FX differences on non-monetary financial assets (investments in equity instruments) are a component of the change in their entire fair value. This amount is calculated using a spot-spot revaluation of the outstanding FV carrying amount on a daily basis and is presented separately. 

23. Net fee and commission income

24. Net result from financial transactions

The movement for results from financial transactions can be mainly explained by changes in valuations for derivatives and FX results. This movement is primarily driven by changes in cross currency basis spreads and yield curves of various underlying currencies (e.g. USD, EUR, AUD).

'Other changes' relate majorly to the remeasurement of 'Dutch government program liabilities' for FMO's obligations to the public fund programs managed on behalf of the Dutch Government. Refer to Note 15 for further details on the nature of 'Dutch government program liabilities'

25. Remuneration for services rendered

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

26. 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.

27. Staff costs

The number of FTE on December 31, 2025, amounted to 879 (2024: 834 FTEs). In 2025, 870 (2024: 825) FTEs were based in the Netherlands and from the other 9 (2024: 9) 2 FTE were based in our regional offices in Costa Rica (2024: 2), 6 FTE were based in South Africa (2024: 5) and one FTE in Kenya (2024: 2).

The average 2025 FTE number amounted to 866 (2024: 813 FTEs).

The Pension costs line item includes an amount of €0.6 million (2024 €6.1 million) related to the defined benefit plan expenses.

28. General and administrative expenses

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. As of December 31, 2025, the Supervisory Board consisted of six members (2024: six). The members of the Supervisory Board were paid a total remuneration of €157k (2024: €140k).

In this consolidated financial statements, immaterial presentation revisions have been made to aggregate 'other operational expenses', which was presented separately in the December 31, 2024 consolidated annual financial statements, with 'Administrative expenses'.

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 PricewaterhouseCoopers Accountants N.V (2024: 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. Additionally, PricewaterhouseCoopers Accountants N.V. and EY Accountants B.V. performed permitted agreed-upon procedures services on the financial reporting of government funds. No other non-assurance services have been performed.

29. Income taxes

Income tax by type

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

Current income tax

FMO received €622 (2024: €18,681 paid) from the tax authorities. The remaining current income tax receivable amounts to €893 (2024: €13,297).

The domestic corporate income tax rate for 2025 is 25.8 percent (2024: 25.8 percent). The effective rate for 2025 is calculated at 19.1 percent - mainly due to the participation exemption of equity results. The increase of the effective tax rate compared with last year is mostly due to this year's lower equity results.

For the financial year ended December 31, 2025, this results in a corporate income tax of €11.5 million (December 31, 2024: €15.4 million). As of December 31, 2025, there are no unrecognized unused tax losses (December 31, 2024: €0 million) and no unrecognized unused tax credits (December 31, 2024: €0).

Deferred tax

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