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Fair values

The following table sets out the fair value of the financial instruments held as at 31 December 2017. The fair value of listed government paper and interest-bearing securities is the market value. The fair value of unlisted government paper and interest-bearing securities is public quoted information if available or nominal value. The fair value of banks, loans and funds entrusted has been determined by calculating the net present value of expected interest and redemption cashflows, taken into account market interest rates as at the end of the year. The fair value of the loans includes floating rate UK business banking loans, for which the interest percentage contains a floor. For these loans the fair value is determined by calculating the present value of the contractual cash flows of the loan (based on forward rates) plus the option value of the embedded floors. An assumed prepayment rate is also included which differs per branch and between mortgages and business loans. We did not include a term structure in the spread. The fair value of the other items is assumed to be equal to the balance sheet value.

The fair value of the remaining assets also includes the deferred tax item. The premium and discount for the government paper and interest-bearing securities has been included in the balance sheet value of respectively the government paper and interest-bearing securities.

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2017

 

2016

 

in thousands of EUR

Balance sheet
value

Fair value

Balance sheet
value

Fair value

 

 

 

 

 

1

The fair value is negatively impacted by the tax effect of all fair value adjustments which has been posted as other.

 

 

 

 

 

Assets

 

 

 

 

Cash

1,365,729

1,365,729

732,219

732,219

Government paper including discounts

26,504

26,510

179,062

179,223

Banks

216,375

216,287

467,529

467,472

Loans

6,597,901

6,664,156

5,708,338

5,866,087

Interest-bearing securities including premiums/discounts

1,433,848

1,481,963

1,757,259

1,822,073

Shares

20

20

20

20

Participating interests

14,649

14,649

16,411

16,411

Other

246,422

220,0261

219,196

169.0761

 

 

 

 

 

 

 

 

 

 

 

9,901,448

9,989,340

9,080,034

9,252,581

 

 

 

 

 

Liabilities

 

 

 

 

Banks

64,363

62,832

31,582

32,347

Funds entrusted

8,721,888

8,732,121

8,024,620

8,046,043

Other

102,302

102,301

120,151

120,151

Equity

1,012,895

1,012,895

903,681

903,681

Revaluation on equity

79,191

150,359

 

 

 

 

 

 

 

 

 

 

 

9,901,448

9,989,340

9,080,034

9,252,581

 

 

 

 

 

Prior year amounts have been adjusted regarding change of the accounting standard for property for own use from actual cost to historical cost. For further explanation see the general accounting principles.

The estimated fair values provided by financial institutions are considered not to be comparable on an individual basis, due to the differences in valuation methods applied and the use of estimates in these valuations. The lack of an objective method of valuation means that estimated fair values are subjective in respect of the expected maturity and interest rates used.