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%).