12.1 Accounting policy
Interest income is recognized on an accrual basis based on the effective interest rate.
Interest income comprises interest on financial instruments measured at amortized cost and at fair value through other comprehensive income.
The effective interest rate is the rate that discounts estimated future cash flows to the gross carrying amount of the financial asset.
Interest income is calculated on the gross carrying amount, except for credit-impaired assets and purchased or originated credit-impaired (POCI) financial assets. For such assets, interest income is calculated on the gross carrying amount less allowances for expected credit losses.
12.2 Quantitative data
|Interest income calculated using the effective interest rate||1 January – 31 December 2020||1 January – 31 December 2019|
|Loan receivables from clients||7,571||9,119|
|Debt securities measured at fair value through other comprehensive income||980||1,017|
|Debt securities measured at amortized cost||1,296||1,268|
|Term deposits in credit institutions||37||99|
|Cash and cash equivalents||18||47|
|Interest income calculated using the effective interest rate, total||10,262||12,015|