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Concepts and definitions

Derivative instruments

Premiums paid for derivative instruments, including positive fair values of derivative instruments included among assets.

Interest expenses

Interest expenses include interest, penalty interest, and commissions for loan arrangement and other commissions calculated on a time basis or by reference to the loan principal. Also included are issue losses incurred in connection with loans issues as well as fees and commissions on loans received, to the extent that these losses or commissions are attributable to the accounting period. Not included are fees in compensation of direct administrative expenses related to the granting of the loan.

Interest income

Interest income includes interest, penalty interest, and commissions for loan arrangement and other commissions calculated on a time basis or by reference to the amount of principal.

Also included are: the difference between the nominal value and the purchase price of acquired receivables to the extent that it is attributable to the accounting period; the difference between the resale price and purchase price of securities or other assets bought under repos imposing obligations on the investment firm and its contracting party during the validity of the agreement; and gains of an interest nature resulting from derivative instruments.

Fees and commissions which are comparable to interest income are allocated as interest income over the loan's maturity period.

Net gains from securities and foreign currency transactions

Positive or negative difference (trade margin) between sales price and book value of debt securities, shares and participations belonging to the financial assets of a credit institution.

Positive and negative exchange differences resulting from currency exchange and from translating foreign-currency items (assets, debts and currency swap contracts) into domestic currency.

Net income from available-for-sale financial assets

Net income from financial assets that a company holds, often for an extended period of time, with the intent of selling them at a convenient opportunity.

Net income from hedge accounting

Hedging involves the use of e.g. derivative instruments for the purpose of eliminating risks relating to e.g. interest rate, exchange rate or commodities price developments.

Net income from investment property

Net income from land or buildings not in the company's own use. Assets are held for capital appreciation or rental income.

Other operating income

Gross rental income from real estate, as well as gross dividend income and rental income from real estate corporations, commissions and fees paid for administrative services etc. by businesses belonging to the same group or consolidation group, as well as other income from the ordinary business of the credit institution.

Turnover

Credit institutions' and investment firms' turnover include the following items: Interest income + Leasing income + Income from equity investments + Commissions and fees + Net income or net losses from securities and foreign exchange transactions + Other operational income.

Also included after transition to IAS/IFRS-compliant reporting on 1 January 2005 are: Net income from available-for-sale financial assets + Net income from hedge accounting + Net income from investment property.