FINANCIAL STATEMENTS

Statement of comprehensive income

The accounting policies, risk management and notes are an integral part of these financial statements.

Statement of cash flows

FINANCIAL STATEMENTS

For the year ended 31 December 2016

Year to

31 December

2016

€ million

Year to

31 December

2015

€ million

Net profit/(loss) after transfers of net income approved by the Board of Governors

804

442

Other comprehensive expense

 

 

1. Items that will not be reclassified subsequently to profit or loss

 

 

Share investments designated as fair value through

other comprehensive expense

12

(7)

Actuarial gains/(losses) on defined benefit scheme

20

(6)

2. Items that may be reclassified subsequently to profit or loss

 

 

Cash flow hedges

(2)

-

Total comprehensive income/(loss)

834

429

 

 

 

Attributable to:

 

 

Equity holders

834

429

Balance sheet

At 31 December 2016

Note

€ million

31 December 2016

€ million

€ million

31 December 2015

€ million

Assets

 

 

 

 

 

Placements with and advances to credit institutions

12

14,110

 

11,724

 

Debt securities

13

 

 

 

 

At fair value through profit or loss

 

926

 

747

 

At amortised cost

 

8,981

 

11,329

 

 

 

9,907

 

12,076

 

Collateralised placements

 

-

 

13

 

 

 

 

24,017

 

23,813

Other financial assets

14

 

 

 

 

Derivative financial instruments

 

4,319

 

4,596

 

Other financial assets

 

214

 

335

 

 

 

 

4,533

 

4,931

Loan investments

 

 

 

 

 

Banking portfolio:

 

 

 

 

 

Loans at amortised cost

15

22,885

 

21,817

 

Less: Provisions for impairment

10

(1,044)

 

(1,083)

 

Loans at fair value through profit or loss

16

313

 

339

 

 

 

 

22,154

 

21,073

Share investments

 

 

 

 

 

Banking portfolio:

 

 

 

 

 

At fair value through profit or loss

17

5,265

 

5,033

 

Treasury portfolio:

 

 

 

 

 

Share investments at fair value through

other comprehensive income

18

75

 

63

 

 

 

 

5,340

 

5,096

Intangible assets

19

 

63

 

63

Property, technology and office equipment

20

 

43

 

50

Total assets

 

 

56,150

 

55,026

Liabilities

 

 

 

 

 

Borrowings

 

 

 

 

 

Amounts owed to credit institutions and

other third parties

21

2,478

 

2,590

 

Debts evidenced by certificates

22

35,531

 

34,280

 

 

 

 

38,009

 

36,870

Other financial liabilities

23

 

 

 

 

Derivative financial instruments

 

2,170

 

2,993

 

Other financial liabilities

 

540

 

577

 

 

 

 

2,710

 

3,570

Total liabilities

 

 

40,719

 

40,440

Members’ equity attributable to equity holders

 

 

 

 

 

Paid-in capital

24

6,207

 

6,202

 

Reserves and retained earnings

25

9,224

 

8,384

 

Total members’ equity

 

 

15,431

 

14,586

Total liabilities and members’ equity

 

 

56,150

 

55,026

Memorandum items

 

 

 

 

 

Undrawn commitments

26

 

12,075

 

12,959

The accounting policies, risk management and notes sections are an integral part of these financial statements.

 

 

 

 

 

Statement of changes in equity

For the year ended 31 December 2016

Subscribed capital

€ millio

Callable capital

€ million

Fair value through other comprehensive income reserve

€ million

Cash flow reserves

€ million

Actuarial remeas-urement

€ million

Retained earnings

€ million

Total

equity

€ million

At 31 December 2014

29,673

(23,471)

14

-

(8)

7,941

14,149

Total comprehensive loss for the year

-

-

(7)

-

(6)

442

429

Internal tax for the year

-

-

-

-

-

8

8

At 31 December 2015

29,674

(23,472)

7

 

(14)

8,391

14,586

 

 

 

 

 

 

 

 

Total comprehensive income for the year

-

-

12

(2)

20

804

834

Internal tax for the year

-

-

-

-

-

6

6

Capital subscriptions

29

(24)

 

 

 

 

 

At 31 December 2016

29,703

(23,496)

19

(2)

6

9,201

15,431

Refer to note 25 “Reserves and retained earnings” for a further explanation of the Bank’s reserves.

The accounting policies, risk management and notes sections are an integral part of these financial statements.

 

For the year ended 31 December 2016

€ million

Year to

31 December

2016

€ million

€ million

Year to

31 December 2015

€ million

Cash flows from operating activities

 

 

 

 

Net profit/(loss) for the year

804

 

442

 

Adjustments for:

 

 

 

 

Unwinding of the discount relating to impaired identified assets

(31)

 

(30)

 

Interest income

(1,102)

 

(1,178)

 

Interest expenses and similar charges

318

 

309

 

Net deferral of fees and direct costs

113

 

98

 

Dividend income

(97)

 

(82)

 

Internal tax

7

 

7

 

Realised gains on share investments and equity derivatives

(21)

 

(250)

 

Unrealised (gains)/losses on share investments and equity derivatives

at fair value through profit or loss

(305)

 

53

 

Unrealised (gains)/losses from loans at fair value through profit or loss

(9)

 

44

 

Realised gains on Banking loans

(15)

 

(3)

 

Realised gains on Treasury investments

(6)

 

(4)

 

Fair value movement on hedges

(131)

 

165

 

Unrealised fair value movement

344

 

(262)

 

Foreign exchange gains

(10)

 

(1)

 

Depreciation and amortisation

21

 

30

 

Loss on disposal of property, technology and office equipment

5

 

2

Gross provisions charge for Banking loan losses and guarantees

60

 

(121)

 

Movement in net income allocations payable

105

 

115

 

Adjusted net profit

50

 

(666)

 

Interest income received

1,055

 

1,056

 

Interest expenses and similar charges paid

(444)

 

(276)

 

Dividend income received

99

 

80

 

(Increase)/decrease in operating assets:

 

 

 

 

Prepaid expenses

33

 

25

 

Proceeds from repayments of Banking loans

9,124

 

6,818

 

Funds advanced for Banking loans

(9,854)

 

(7,743)

 

Proceeds from sale of Banking share investments and equity derivatives

764

 

1,361

 

Funds advanced for Banking share investments

(744)

 

(1,082)

 

Net placements to credit institutions

(1,500)

 

86

 

Net proceeds from settlement of derivatives

(32)

 

1,633

 

Increase in operating liabilities:

 

 

 

 

Accrued expenses

84

 

94

 

Net cash from operating activities

 

(1,395)

 

1,386

Cash flows used in investing activities

 

 

 

 

Proceeds from debt securities at amortised cost

12,724

 

12,721

 

Purchases of debt securities at amortised cost

(10,341)

 

(12,622)

 

Proceeds from sale of debt securities held at fair value through profit or loss

901

 

1,334

 

Purchases of debt securities held at fair value through profit or loss

(1,065)

 

(1,026)

 

Purchases of intangible assets, property, technology and office equipment

(43)

 

(61)

 

Net cash from investing activities

 

2,176

 

346

Cash flows from financing activities

 

 

 

 

Capital received

5

 

-

 

Issue of debts evidenced by certificates

15,526

 

15,454

 

Redemption of debts evidenced by certificates

(15,328)

 

(16,088)

 

Net cash used in financing activities

 

203

 

(634)

Net increase in cash and cash equivalents

 

984

 

1,098

Cash and cash equivalents at beginning of the year

 

7,533

 

6,435

Cash and cash equivalents at 31 December20

 

8,517

 

7,533

Cash and cash equivalents are amounts with less than three months to maturity from the date of the transactions, which are available for use at short notice and are subject to insignificant risk of change in value. Within the 31 December 2016 balance is €9 million restricted for technical assistance to be provided to member countries in the SEMED region (2015: €12 million).

 

The accounting policies, risk management and notes sections are an integral part of these financial statements.

 

 

 

 

FOOTNOTES

20 See note 12 on page 60 for total amounts in ‘placements with and advances to credit institutions’.

European Bank for Reconstruction and Development

One Exchange Square London EC2A 2JN United Kingdom

Tel: +44 20 7338 6000 Fax: +44 20 7338 6100

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