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Concepts and definitions

Accrued expenses and deferred income

Accrued interest and other expenses as well as deferred interest and other income, adjusted or supplemented on an accrual basis.

Accrued income and prepayments

Accrued interest and other income as well as prepaid interest and other expenses, adjusted or supplemented on an accrual basis.

Appropriations

Increases/decreases in the accumulated depreciation difference to be considered in determining taxable income, and increases/decreases in voluntary provisions deductible for tax purposes.

Average number of staff during the accounting period

Staff is classified into upper-level employees, lower-level employees and manual workers in accordance with the wage statistics nomenclatures of the Central Union of Business Employers and Statistics Finland, both of which distinguish between managers and other employees. The distinction between upper-level and lower-level employees is, however, ultimately determined by the firm's internal practice. Manual workers include porters, cleaners, janitors, maintenance men, cooks, chauffeurs etc.

Commission income

Commission income (finrep -reporting)

The item includes commission income from security brokering, clearing and settlement, asset management, custody services, administrative service to institutional customers, payment traffic, distribution channel commissions, structured products, servicing commissions from securitisation activities, commissions from lending, granted guarantees and other received commissions.

Debt securities

Debt securities comprise all marketable debt instruments, such as Treasury bills, securities issued by municipalities, bank certificates of deposit, commercial papers, bonds and convertible bonds.

Debt securities issued to the public

Bonds and other comparable marketable bearer bonds and promissory notes made out to order and issued by an investment firm.

Deferred tax assets and tax liabilities

Deferred tax assets and liabilities arising from timing differences and other temporary differences.

Depreciation, amortisation and impairment of tangible and intangible assets

Depreciation, amortisation and impairment of tangible and intangible assets include 1) depreciations according to plan, based on the passage of time, and 2) impairment write-downs based on a probable permanent decrease in the asset's market value.

Derivative instruments

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

Fees and commission expenses

Fees and commission expenses (statements)

Fee and commission expenses include clearing and settlement expenses, custody expenses, servicing fees from securitisation activities, loan commitments received, guarantees received and other fee and commission expenses.

Impairment losses from other financial assets

Record here the impairment losses from held-to-maturity financial assets (debt securities) and from shares and equity of subsidiaries and holding companies valued at acquisition price.

Impairment losses on loans and other commitments

Impairment losses on receivables from credit institutions and on loans and advances to the public and general government, as well as impairment losses from off-balance sheet commitments.

Income and expenses from other than ordinary activities

Income and expenses pertaining to exceptional and non-recurring events which are not part of the ordinary business of the credit institution.

Intangible assets

Intangible rights and assets acquired against a consideration (e.g. concessions, patents, licenses and trademarks). Intangible assets generated through internal development activities can be included on a prudent basis.

Interest expenses

Interest expenses (statements)

The interest expenses item includes, e.g. interests, penalty interests, and loan arrangement and other commissions that are determined based on the passing of time and the amount of capital; the share of issue losses from issued loans belonging to the financial year and the share of commissions paid on received loans belonging to the financial year excluding any compensation on direct administrative costs related to the granting of the loan.

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.

Interest income

Interest income (statements)

The interest income items includes, for example,

• Interests and interest subsidies, penalty interests, and loan arrangement and other commissions that are determined based on the passing of time and the amount of capital

-The proportion of the difference between the nominal value and acquisition price of receivables acquired below or under the nominal value belonging to the financial year

• Difference between the repurchase price and purchase price of securities and other commodities bought with repurchase agreements during the validity of the agreement.
• Interest-like income related to derivative contracts.

Fees comparable to interest, such as the marginal interest rate, are allocated as interest income during the term of the loan.

Investment firm

Investment firms are business enterprises that have been granted a concession to act as investment firms by the Financial Supervision Authority FIN-FSA. Investment firms are allowed to engage in the intermediation and implementation of trading assignments in financial instruments, trading in financial instruments on own account, asset management, investment advisory services, emission arrangement and underwriting, and arrangement of multilateral trading. In addition, investment firms are allowed to offer services related to the foregoing, such as custodial services of financial instruments, and production and distribution of investment analyses.

Irrevocable commitments given in favour of a customer

Securities sale contracts which include a put option whereby the buyer may sell the securities back to the credit institution if he so wishes. Includes forward deposits, the unpaid amount of partly-paid securities, underwriting obligations, binding standby facilities and unused credit limits.

Liabilities

Liabilities is capital that external parties invest in the enterprise. A liability always involves a repayment obligation. The repayment period for current liabilities is at most one year and that of non-current liabilities is over one year. The main source of liabilities for an enterprise is banks. Different forms of lending include short and long-term credits, overdrafts on current accounts, and intermediated credits.

Liabilities to the public and general government

Liabilities to other than credit institutions and central banks.

Liguid assets

This item comprises Finnish and foreign notes and coins, cheques and bankers' drafts as well as other similar payment instruments. The item also comprises claims on central banks repayable on demand.

Loans and other receivables

Loans and other receivables (finrep - reporting)

The item includes loans, deposits between financial institutions and advance payments. The data are reported as nominal values.

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 assets

Receivables from payment transactions, receivables on various settlement accounts, margin receivables related to derivative instruments and other receivables not reported under any other item in the balance sheet.

Other liabilities

Liabilities related to payment transactions, accounts payable and other liabilities unrelated to the granting of credit, as well as statutory provisions.

Other operating expenses

Rental expenses and other expenses attributable to owner-occupied property, including rental expenses for machinery and equipment, merger losses, insurance and other security costs, supervision, inspection and membership fees as well as other similar expenses which are not attributable to other items.

Other operating expenses

Other operating expenses (finrep -reporting)

Other operating expenses include tangible assets calculated using the current value model, investment properties, rent expenses (incl. real estate rents, machine, object and vehicle rents), merger losses, payments to insurance funds and to the Investors' Compensation Fund, other insurance and security expenses, surveillance, inspection and membership expenses, and other operating expenses.

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.

Other operating income

Other operating income (statements)

The item includes gross dividend and rental income from real estate and real estate corporations, income from administrative services to a firm in the same group or consolidation group and other similar services, and other income from actual operations.

Other restricted reserves

Statutory reserves, reserves mandated by the company's bylaws, and other reserves.

Shares and equity

Shares, primary capital or investment units and other participations that confer a right to the equity of a company. Mutual fund shares and certificates conferring right to subscription to or income from such shares or units are treated as shares and units. Shares and participations in real estate companies are not included.

Subordinated liabilities

Debt securities issued by a credit institution under conditions of subordinate priority relative to other liabilities incurred by the credit institution. The item also includes perpetuals and other subordinated hybrid capital instruments.

Tangible assets

Tangible assets include real property (e.g. buildings, undeveloped land and water areas, property interests held under a lease, or shares and units in real estate companies) and other tangible assets, e.g. computer equipment, other office machinery and equipment, art objects, numismatic collections, vehicles, and machinery and equipment for property maintenance.

Tangible assets

Tangible assets (statements)

Tangible assets include land, water and forest areas (unbuilt), buildings and other real estate, as well as machinery and equipment, and other tangible assets. The real estate item includes investment properties and real estate properties in own use.

Buildings and structures, as well as land and water constructions are recorded as an investment during the statistical reference period when they are paid. Other fixed assets are recorded as investments during the statistical reference period when they are transferred to the buyer's or recipient's use.

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.

Unpaid subscriptions to share issues, investment unit issues or primary capital issues

Total amount of unpaid subscriptions to share issues, investment unit issues or primary capital issues prior to payment or annulment of the subscription.