10. Finance income and expense

Finance income is recognised using the effective interest method. Finance income on impaired loans and receivables is recognised using the original effective interest rate.

Finance expenses comprise interest expenses on borrowings, deposits, cash positions, lease liabilities, finance lease expenses, gains and losses relating to hedging instruments and other financial expenses. Interest expenses on borrowings and lease liabilities are recognised in the income statement using the effective interest method.

2025

2024

Finance income

Interest income

25,984

23,400

Finance expense

Interest expense on lease liabilities

12,727

10,043

Interest expense on other financial liabilities

6,638

8,601

Less: capitalised interest on property development projects

(3,734)

(3,782)

15,631

14,862

Net finance result

10,353

8,538

The average interest rate for capitalised interest on property development projects for 2025 is 5.1% (2024: 5.5%).