Topic filter


29 Finance costs

millions of €








Interest income




Interest expense








Of which: from leases




Of which: from financial instruments relating to measurement categories in accordance with IFRS 9




Debt instruments measured at amortized cost




Debt instruments measured at fair value through other comprehensive income




Debt instruments measured at fair value through profit or loss




Financial liabilities measured at amortized costa





Interest expense calculated according to the effective interest method and adjusted for accrued interest from derivatives recognized in the reporting year that were used as hedging instruments against interest rate-based changes in the fair values of financial liabilities measured at amortized cost in the reporting year for hedge accounting in accordance with IFRS 9 (2022: interest income of EUR 273 million and interest expense of EUR 284 million; 2021: interest income of EUR 417 million and interest expense of EUR 284 million; 2020: interest income of EUR 377 million and interest expense of EUR 101 million).

Finance costs increased from EUR 4.4 billion to EUR 5.3 billion, primarily due to the modification of the arrangements between T‑Mobile US and Crown Castle, which resulted in an increase in the carrying amounts of lease liabilities. Furthermore, the interest capitalized as part of acquisition costs decreased, especially in the United States operating segment. In the Group Headquarters & Group Services segment, the interest expense for variable-interest financial liabilities increased as a result of the rise in interest rates in the reporting year. In connection with the premature termination of forward-payer swaps by T‑Mobile US at the start of April 2020 and the associated losses recorded directly in equity, reclassifications to profit or loss of EUR 0.2 billion were made (2021: EUR 0.2 billion).

Interest of EUR 125 million (2021: EUR 211 million, 2020: EUR 334 million) was capitalized as part of acquisition costs in the reporting year. The amount was calculated on the basis of an interest rate in the average range between 3.4 % at the start of the year and 3.4 % at the end of the year (2021: between 3.6 and 3.4 %, 2020: between 3.2 and 3.6 %) applied across the Group.

Interest payments (including capitalized interest) of EUR 6.9 billion (2021: EUR 6.4 billion, 2020: EUR 7.6 billion) were made in the reporting year.

Accrued interest payments from derivatives (interest rate swaps) that were designated as hedging instruments in a fair value hedge in accordance with IFRS 9 are netted per swap contract and recognized as interest income or interest expense depending on the net amount. Finance costs are assigned to the measurement categories on the basis of the hedged item. Only financial liabilities were hedged in the reporting period.