31 Other financial income/expense

Other financial income/expense increased by EUR 1.8 billion year-on-year to income of EUR 1.4 billion, with gains/losses from financial instruments increasing by EUR 1.4 billion to a gain of EUR 0.8 billion. This was attributable in particular to positive measurement effects from a forward transaction to hedge the price of acquiring T‑Mobile US shares in the future and positive measurement effects from the amortization and subsequent measurement of the stock options received from SoftBank in June 2020 to buy shares in T‑Mobile US. Less pronounced negative measurement effects from derivatives of T‑Mobile US embedded in bonds compared with the prior-year period also contributed to this. The interest component from the measurement of provisions and liabilities increased by EUR 0.4 billion to EUR 0.6 billion. This increase was mainly attributable to the subsequent measurement using actuarial principles of the present value of the provision recognized for the Civil Service Health Insurance Fund.

EUR -226 million (2021: EUR -282 million, 2020: EUR 341 million) of gains/losses from financial instruments related to currency translation effects, including gains/losses from derivatives used as hedges in foreign-currency hedge accounting, and EUR 1,010 million (2021: EUR -310 million, 2020: EUR 287 million) to gains/losses from other derivatives as well as measurements of equity investments.

As a rule, all income/expense components including interest income and expense from financial instruments classified as at fair value through profit or loss in accordance with IFRS 9 are reported under gains/losses from financial instruments.

For further information on financial instruments, please refer to Note 42 “Financial instruments and risk management.”