29 Finance costs
millions of € |
|
|
|
||
|
2024 |
2023 |
2022 |
||
|---|---|---|---|---|---|
Interest income |
927 |
870 |
387 |
||
Interest expense |
(6,613) |
(6,588) |
(5,679) |
||
|
(5,686) |
(5,719) |
(5,292) |
||
Of which: from leases |
(1,888) |
(1,874) |
(1,515) |
||
Of which: from financial instruments relating to measurement categories in accordance with IFRS 9 |
|
|
|
||
Debt instruments measured at amortized cost |
215 |
324 |
42 |
||
Debt instruments measured at fair value through profit or loss |
399 |
251 |
61 |
||
Financial liabilities measured at amortized costa |
(4,375) |
(4,356) |
(3,839) |
||
|
|||||
Finance costs remained at the prior year level of EUR 5.7 billion. On the one hand, interest income increased, primarily due to an increase in cash on hand invested in interest-bearing money-market investments, where the returns generated were higher than in 2023. On the other hand, interest expense increased slightly, due to higher debt than in the prior year.
Interest of EUR 132 million (2023: EUR 207 million, 2022: EUR 125 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 4.2 % at the start of the year and 4.3 % at the end of the year (2023: between 3.4 % and 4.2 %, 2022: between 3.4 % and 3.4 %) applied across the Group.
Interest payments (including capitalized interest) of EUR 8.1 billion (2023: EUR 7.9 billion, 2022: EUR 6.9 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.