Mizuho Bank Europe Annual Report 2018

56 MIZUHO BANK EUROPE N.V. Reconciliation of ASC 715 liability for pension benefits The table below details how the liability for pension benefits (amount recognized in the annual report) at the end of the prior fiscal year is adjusted forward one year by the pension expense, the contributions during the fiscal year and the change in the accumulated other comprehensive income. (in €’000) 2018 2017 Balance as at 1 January (12,788) (10,272) Contributions in year 337 1,064 Net periodic pension cost in year (2,329) (2,045) Actuarial gain/(loss) in year (PBO) 1,367 (119) Actuarial gain/(loss) in year (FVA) 484 (1,617) Plan amendment 324 - Amortization of actuarial gains/loss 258 179 Prior service cost 10 22 Total 2,443 (1,535) Total pension costs 451 (2,516) Balance as at 31 December (12,337) (12,788) There were two special events in 2018, these were: – As per 1 January 2018, the pensionable age has changed from 67 to 68. This results in a prior service credit of € 63,174 – As per 31 December 2018, the final pay plan was transferred into the average pay plan. This results in a prior service credit of € 260,682 The unrecognized prior service cost in AOCI has decreased from € 293,612 to as at 1 January 2018 to a unrecognized prior service credit of € 40,127. The unrecognized losses in AOCI decrease from € 7,741,694 as at 1 January 2018 to € 5,631,757 as at 31 December 2018. 20. Shareholder’s equity Share capital The authorized share capital amounts to € 192,500 of which € 191,794 is issued and paid up. All shares have a nominal value of € 45.00 each. In 2002 the nominal value was changed from NLG to EUR. A legal reserve was formed for the difference (€ 939,000). In 2017 MBE issued 1,111,111 shares at nominal value of € 45.00 each. This was fully paid up by MHBK, of which MBE is the 100% subsidiary. (in €’000) 2018 2017 Balance as at 1 January 191,794 141,794 Capital increase - 50,000 Balance as at 31 December 191,794 191,794 Legal reserve The reserve contains the amount of rounding difference regarding the redenomination of the shares from NLG to EUR in 2002. Share premium The movement in the share premium is as follows: (in €’000) 2018 2017 Balance as at 1 January 4,342 4,342 Other movements - - Balance as at 31 December 4,342 4,342 Other reserves The movement in the other reserves is as follows: (in €’000) 2018 2017 Balance as at 1 January 236,563 212,908 Appropriation result for the year 16,666 23,655 Balance as at 31 December 253,229 236,563 Result for the year The movement in the result for the year is as follows: (in €’000) 2018 2017 Balance as at 1 January 16,666 23,655 Transfer to Other reserves (16,666) (23,655) Result for the year 21,380 16,666 Balance as at 31 December 21,380 16,666 21. Contingent liabilities The specification of the contingent liabilities is as follows: (in €’000) 31/12/2018 31/12/2017 Guarantees 717,966 622,433 Irrevocable letters of credit and acceptances 13,472 10,936 731,438 633,369 The contingent liabilities include all liabilities arising from transactions in which the bank has guaranteed the commitments of third parties.

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