Mizuho Bank Europe Annual Report 2018

58 MIZUHO BANK EUROPE N.V. 5.7 Notes to the Profit and Loss 26. Interest and similar income The specification of interest and similar income is as follows: (in €’000) 2018 2017 Loans 66,653 51,268 Swaps 26,360 30,636 Commitment fees 12,568 14,400 Banks 3,439 3,235 Debt securities including fixed-income securities - 29 Others 13,856 15,592 122,876 115,160 The interest and similar income includes income arising from the lending of funds and related transactions as well as commissions and other income which have the character of interest. The other interest income mainly relates to money market transactions (€ 12,704,000, in 2017 € 14,364,000) and decreased due to business opportunities in currencies. The average interest return is calculated at 0.147% (2017: 0.125%). The average interest is calculated per income category, taking the overall weighting into account. 27. Interest expense and similar charges The specification of interest expense and similar charges is as follows: (in €’000) 2018 2017 Swaps 25,757 32,680 Banks 28,485 19,776 Commitment fees 8,354 9,801 Central banks 3,727 2,494 Deposits and current accounts 17,762 11,230 Others 10,191 13,793 94,276 89,774 The interest expense and similar charges include costs arising from borrowing of funds and related transactions as well as other charges which have the character of interest. The other interest expenses mainly relate to guarantee expenses and utilization fees. The average funding cost is calculated at 0.063% (2017: 0.058%). The average interest is calculated per expense category, taking the overall weighting into account. 28. Commission income The specification of commission income is as follows: (in €’000) 2018 2017 Transaction services 7,438 4,027 Services over a certain period 12,922 12,505 20, 360 16,532 The commission income comprises income from fees received in respect of banking services supplied to third parties insofar as these do not have the character of interest. 29. Commission expense (in €’000) 2018 2017 Commission expense 447 688 447 688 The commission expense concerns expenses paid in respect of fees for banking services supplied by third parties insofar as these do not have the character of interest. 30. Result on financial operations (in €’000) 2018 2017 Foreign currency results 6,196 5,075 Results derivatives (871) 622 5,325 5,697 The result on financial operations comprises of foreign currency results, which are mainly a result of foreign currency transactions on behalf of customers, and fair value changes of the derivatives recorded at fair value through the profit and loss. The results derivatives included last year a one-off profit on a derivative transactions, executed with the cooperation with our office in London. 31. Staff costs and other administrative expenses The specification of the staff costs and other administrative expenses is as follows: (in €’000) 2018 2017 Staff costs 11,850 13,582 Other administrative expenses 12,304 10,372 24,154 23,954