FINANCIAL STATEMENTS

Statement of comprehensive income

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

Statement of cash flows

FINANCIAL STATEMENTS

For the year ended 31 December 2015

Year to

31 December

2015

€ million

Year to

31 December

2014

€ million

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

442

(723)

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

(7)

(1)

Actuarial losses on defined benefit scheme

(6)

(5)

Cash flow hedges

-

(4)

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

 

 

Cash flow hedges

-

-

Total comprehensive income/(loss)

429

(733)

 

 

 

Attributable to:

 

 

Equity holders

429

(733)

Balance sheet

At 31 December 2015

Note

€ million

31 December 2015

€ million

€ million

31 December 2014

€ million

Assets

 

 

 

 

 

Placements with and advances to credit institutions

12

11,724

 

10,612

 

Debt securities

13

 

 

 

 

At fair value through profit or loss

 

747

 

106

 

At amortised cost

 

11,329

 

11,688

 

 

 

12,076

 

11,794

 

Collateralised placements

14

13

 

57

 

 

 

 

23,813

 

22,463

Other financial assets

15

 

 

 

 

Derivative financial instruments

 

4,596

 

4,978

 

Other financial assets

 

335

 

345

 

 

 

 

4,931

 

5,323

Loan investments

 

 

 

 

 

Banking portfolio:

 

 

 

 

 

Loans at amortised cost

16

21,817

 

20,358

 

Less: Provisions for impairment

10

(1,083)

 

(1,209)

 

Loans at fair value through profit or loss

17

339

 

338

 

 

 

 

21,073

 

19,487

Share investments

 

 

 

 

 

Banking portfolio:

 

 

 

 

 

At fair value through profit or loss

18

5,033

 

5,069

 

Treasury portfolio:

 

 

 

 

 

Share investments at fair value through

other comprehensive income

19

63

 

62

 

 

 

 

5,096

 

5,131

Intangible assets

20

 

63

 

43

Property, technology and office equipment

21

 

50

 

40

Total assets

 

 

55,026

 

52,487

Liabilities

 

 

 

 

 

Borrowings

 

 

 

 

 

Amounts owed to credit institutions and

other third parties

22

2,590

 

2,534

 

Debts evidenced by certificates

23

34,280

 

32,922

 

 

 

 

36,870

 

35,456

Other financial liabilities

24

 

 

 

 

Derivative financial instruments

 

2,993

 

2,430

 

Other financial liabilities

 

577

 

452

 

 

 

 

3,570

 

2,882

Total liabilities

 

 

40,440

 

38,338

Members’ equity attributable to equity holders

 

 

 

 

 

Paid-in capital

25

6,202

 

6,202

 

Reserves and retained earnings

26

8,384

 

7,947

 

Total members’ equity

 

 

14,586

 

14,149

Total liabilities and members’ equity

 

 

55,026

 

52,487

Memorandum items

 

 

 

 

 

Undrawn commitments

27

 

12,959

 

11,531

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 2015

Subscribed capital

€ million

 

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 2013

29,673

(23,471)

15

4

(3)

8,658

14,876

Total comprehensive loss for the year

-

-

(1)

(4)

(5)

(723)

(733)

Internal tax for the year

-

-

-

-

-

6

6

Capital subscriptions

1

(1)

-

-

-

-

-

At 31 December 2014

29,674

(23,472)

14

 

(8)

7,941

14,149

 

 

 

 

 

 

 

 

Total comprehensive income 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

Refer to note 26 “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 2015

€ million

Year to

31 December

2015

€ million

€ million

Year to

31 December 2014

€ million

Cash flows from operating activities

 

 

 

 

Net profit/(loss) for the year

442

 

(723)

 

Adjustments for:

 

 

 

 

Unwinding of the discount relating to impaired identified assets

(30)

 

(13)

 

Interest income

(1,178)

 

(1,139)

 

Interest expenses and similar charges

309

 

289

 

Net deferral of fees and direct costs

98

 

96

 

Dividend income

(82)

 

(109)

 

Internal tax

7

 

6

 

Realised gains on share investments and equity derivatives

(250)

 

(281)

 

Unrealised losses on share investments and equity derivatives

at fair value through profit or loss

53

 

1,029

 

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

44

 

(3)

 

Realised gains on Banking loans

(3)

 

(7)

 

Realised gains on Treasury investments

(4)

 

(7)

 

Fair value movement on hedges

165

 

34

 

Unrealised fair value movement

(262)

 

287

 

Foreign exchange gains

(1)

 

-

 

Depreciation and amortisation

30

 

26

 

Loss on disposal of property, technology and office equipment

2

 

-

Gross provisions charge for Banking loan losses and guarantees

(121)

 

438

 

Movement in net income allocations payable

115

 

-

 

Adjusted net profit

(666)

 

(77)

 

Interest income received

1,056

 

1,015

 

Interest expenses and similar charges paid

(276)

 

(266)

 

Dividend income received

80

 

89

 

(Increase)/decrease in operating assets:

 

 

 

 

Prepaid expenses

25

 

(22)

 

Proceeds from repayments of Banking loans

6,818

 

7,406

 

Funds advanced for Banking loans

(7,743)

 

(8,250)

 

Proceeds from sale of Banking share investments and equity derivatives

1,361

 

1,507

 

Funds advanced for Banking share investments

(1,082)

 

(1,052)

 

Net placements to credit institutions

86

 

122

 

Net proceeds from settlement of derivatives

1,633

 

747

 

Increase in operating liabilities:

 

 

 

 

Accrued expenses

94

 

22

 

Net cash from operating activities

 

1,386

 

1,241

Cash flows used in investing activities

 

 

 

 

Proceeds from debt securities at amortised cost

12,721

 

15,541

 

Purchases of debt securities at amortised cost

(12,622)

 

(14,468)

 

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

1,334

 

223

 

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

(1,026)

 

(208)

 

Purchases of intangible assets, property, technology and office equipment

(61)

 

(26)

 

Net cash from/(used in) investing activities

 

346

 

1,062

Cash flows from financing activities

 

 

 

 

Issue of debts evidenced by certificates

15,454

 

9,484

 

Redemption of debts evidenced by certificates

(16,088)

 

(9,499)

 

Net cash used in financing activities

 

(634)

 

(15)

Net increase in cash and cash equivalents

 

1,098

 

2,288

Cash and cash equivalents at beginning of the year

 

6,435

 

4,147

Cash and cash equivalents at 31 December15

 

7,533

 

6,435

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 2015 balance is €12 million restricted for technical assistance to be provided to member countries in the southern and eastern Mediterranean (SEMED) region (2014: €14 million).

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

 

 

 

 

FOOTNOTES

15 See note 12 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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