Liabilities to credit institutions and customers
Liabilities due to banks Liabilities due to customers
in T€ 31.12.2015 31.12.2014 31.12.2015 31.12.2014
Payable on demand 464,350 482,270 – – < 3 months – 147,317 – 310,000 > 3 months and < 1 year 27,500 183,090 11,500 – > 1 year and < 5 months – – 42,000 41,500 > 5 years – – 665,597 677,597
Total 491,850 812,677 719,097 1,029,097
As of 31 December 2015, there were no liabilities from repos due to other banks (31 December 2014: T€ 330,407).
In the financial year, the termination option was utilised in the case of two zero covered bonds with a nominal value of T€ 310,000.
Securitised liabilities
Public covered bonds
in T€ 31.12.2015 31.12.2014
Payable on demand – –
< 3 months – 15,000
> 3 months and < 1 year 405,473 41,584 > 1 year and < 5 months 421,405 432,619 > 5 years 46,147 374,251
Total 873,025 863,454
The securitised liabilities which fall due within one year amount to T€ 405,473.
In the financial year, securitised liabilities totalling T€ 61,194 fell due upon final maturity (TCHF 50,000 and T€ 15,000). In addition, own bonds with a nominal value of TCHF 3,000 were repur- chased and redeemed.
4.2 Details of liabilities due to affiliated companies or other group companies Of the figure shown for liabilities due to affiliated companies, current money trading transac- tions account for T€ 469,400 (31 December 2014: T€ 453,100), security lending transactions (repos) account for T€ 0 (31 December 2014: T€ 330,407) and subordinate bonds account for T€ 9,000 (31 December 2014: T€ 9,000).
4.3 Other liabilities
The other liabilities of T€ 262 mainly comprise outstanding payment commitments as of the reference date in connection with VAT (T€ 192) and social charges (T€ 70).
4. Disclosures relating to liability items
4.4 Accruals and deferrals
The following table sets out a breakdown and the development of deferred income compared with the previous year.
Accruals and deferrals
31.12.2015 31.12.2014
in T€
Interest deferrals 56,453 48,872 Deferrals for issuing and lending operations 39,652 18,421 Premiums, securities 39,645 18,068
Zero deferrals – –
Other 7 353
Derivatives 47,184 45,486
Nominal value difference for interest and currency swaps 17,467 21,090 Up-front fees 29,435 24,396
Others 282 –
Total 143,289 112,779
4.5 Provisions
In addition to tax provisions of T€ 1,059, the other disclosed provisions of T€ 39,940 were created mainly for provisions for contingent losses relating to off-balance-sheet transactions with latent risks.
The provisions for contingent losses are shown as T€ 38,616 (31 December 2014: T€ 42,285). In the case of some derivatives, the need to create these provisions arises as a result of the cancellation of the hedge relationship due to the disposal of the underlying and the closing of the position by means of opposite new transactions without creating a valuation unit. There are also other provisions of T€ 1,324. Of this figure, provisions of T€ 485 relate to liabilities due to affiliated companies, and are attributable almost exclusively to IT costs. In addition, further provisions of T€ 458 were created for personnel expenses, and provisions of T€ 353 were created for third-party costs (audit fees, consultancy fees, etc.).
4.6 Subordinate liabilities
The Bank received a “dormant contribution” of T€ 9,000 as of 28 December 2000. The liability is undated, and the interest was related to profits. For regulatory purposes, it was attributable to supplementary tier-I capital. As of 1 January 2003, the dormant contribution was converted into a subordinate issue; interest, term and regulatory classification were unchanged. In accord- ance with the letter of the CSSF of 18 May 2015, this subordinate issue is for regulatory purposes ascribed to the limited supplementary capital (T2) in accordance with Art. 485 (5) CRR.
No interest has been recognised during the reporting period in the income statement as a result of the net loss for the year. Last year, it was not necessary for the holders of the subordinate issue to bear a share of losses.
The Bank issued subordinate funds of T€ 15,000 on 18 May 2001. The subordinate funds were topped up by T€ 10,000 to T€ 25,000 as of 30 January 2002, subject to the same conditions. The final payment of the subordinate funds which are repayable in instalments after 18 May
58
2017 will be made on 18 May 2026; interest is charged at a rate of 6.8% p.a. In the year under review, interest amounting to T€ 1,697 was recognised in the income statement. For regulatory purposes, these subordinate funds were classified as supplementary capital. After the CRR came into force, these funds are classified as tier-2 capital for regulatory purposes in accord- ance with Art. 62 CRR.
4.7 Equity
Subscribed capital is stated as T€ 68,000, and consists of 68,000 no-par-value registered shares.
With effect from 12 May 2015, the subscribed capital was increased by T€ 2,000, comprising 2,000 no-par-value registered shares. All of the 2,000 new shares were issued in return for a cash payment of T€ 30,000; of this figure, T€ 2,000 was ascribed to subscribed capital and T€ 28,000 was ascribed to the issue premium. In addition, the statutory reserve was increased by T€ 200 by converting the issue premium. The issue premium is now shown as T€ 42,800 (31 December 2014: T€ 15,000).
With effect from 21 December 2015, the sole shareholder provided a capital contribution of T€ 10,500 into the reserves without issuing new shares.
In accordance with the Luxembourg law of 10 August 1915 regarding trading companies, the Bank has to pay every year an amount of not less than 5% of its annual net profit to a legal reserve until the legal reserve amounts to 10% of its subscribed capital. The legal reserve is not permitted to be paid out in the form of dividends. As of the reference date, there was a legal reserve of T€ 6,800 (31 December 2014: T€ 6,600), which has thus attained the legally prescribed amount, and also provides a free reserve of T€ 29,032 (31 December 2014: T€ 32,532). The change is attributable to the netting of the previous year loss and the capital injection.
The result of the year amounts to T€ -23,400, and is mainly attributable to the losses incurred by sales of assets in order to remedy the large exposure problem. The result of the financial year 2015 is posted to the loss carry-forward.
4.8 Wealth tax
The Bank takes advantage of the option available under tax law for netting its wealth tax liability; this requires that a figure equivalent to five times the wealth tax liability has to be paid into a special item of retained earnings. It is not permitted for this item to be paid out for a period of five years if the wealth tax liability is to be avoided. The reserves include a figure of T€ 115 for netting the wealth tax. For the financial years since 2011, the tax loss carry-forward for the year means that no amounts can be paid into these reserves because, as there is no income tax liability, the wealth tax is not deductible. This situation was still applicable in the reporting year, and the wealth tax accordingly has to be paid.
The wealth tax is disclosed in the income statement under the item “Other taxes not included in the above items” and amounts to T€ 897.
4. Disclosures relating to liability items