D Balance sheet disclosures

19. Cash and cash equivalents

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Cash on hand	6,243	6,753
Balances with central banks	113,513	111,192
Public-sector debt instruments and bills of exchange eligible for refinancing by central banks	–	19
Total	119,757	117,964

20. Loans and advances to banks and customers

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Loans and advances to banks	38,158	45,292
Repayable on demand	29,104	32,745
Other loans and advances	9,054	12,547
Mortgage loans and other loans secured by mortgages on real estate	14	58
Local authority loans	1,592	2,380
Other loans and advances	7,448	10,109
Loans and advances to customers	1,023,602	999,937
Mortgage loans and other loans secured by mortgages on real estate	422,604	404,209
Local authority loans	30,306	31,795
Home savings loans advanced by building society	64,631	63,660
Finance leases	463	565
Other loans and advances	505,598	499,708

21. Hedging instruments (positive and negative fair values)

The positive fair values of hedging instruments amount to €5,259 million (2022: €10,169 million), the negative fair values of hedging instruments amount to €624 million (2022: €442 million). Both positive and negative fair values of hedging instruments exclusively result from derivative hedging instruments for fair value hedges.

The non-controlling interests include the shares in the equity of consolidated companies that are not attributable to the Cooperative Financial Network.

22. Financial assets held for trading

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Derivatives (positive fair values)	16,482	21,474
Interest-linked contracts	13,799	17,779
Currency-linked contracts	1,759	2,956
Share- and index-linked contracts	688	547
Credit derivatives	225	187
Other contracts	11	6
Securities	9,533	9,011
Bonds and other fixed-income securities	8,188	7,602
Shares and other variable-yield securities	1,346	1,408
Loans and advances	7,735	18,064
Inventories and trade receivables	377	466
Other assets held for trading	–	1
Total	34,127	49,015

23. Investments

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Securities	235,614	234,749
Bonds and other fixed-income securities	149,864	152,460
Shares and other variable-yield securities	85,751	82,289
Investments in subsidiaries	3,054	2,772
Equity investments	2,604	2,670
Investments in joint ventures	293	300
Investments in associates	145	144
Other shareholdings	2,167	2,226
Total	241,273	240,192

24. Loss allowances

Loss allowances for loans and advances to banks

€ million

	Stage 1	Stage 2	Stage 3	POCI	Total
Balance as at Jan. 1, 2022	22	19	8	–	49
Restatements according to IAS 8	–	1	–	–	1
Restated balance as at Jan. 1, 2022	22	21	8	–	51
Additions	35	128¹	46	–	210
Reversals	–30	–16	–24	–	–70
Other changes	–1	–2	2	–	–1
Balance as at Dec. 31, 2022	26	131	32	–	190
Additions	28	31	8	–	66
Reversals	–30	–76	–13	–	–119
Other changes	–	–	–1	–	–1
Balance as at Dec. 31, 2023	25	85	26	–	136

¹ Amount restated

Loss allowances for loans and advances to customers

€ million

	Stage 1	Stage 2	Stage 3	POCI	Total
Balance as at Jan. 1, 2022	668	4,160	4,329	13	9,170
Restatements according to IAS 8	–	206	–	–	206
Restated balance as at Jan. 1, 2022	668	4,365	4,329	13	9,376
Additions	340¹	2,013¹	2,102	28	4,482
Utilizations	–	–1	–575	–4	–580
Reversals	–536	–816	–1,832	–19	–3,203
Other changes	182	–305	172	1	50
Balance as at Dec. 31, 2022	654	5,256	4,196	18	10,124
Additions	311	1,359	3,964	31	5,664
Utilizations	–	–2	–495	–5	–501
Reversals	–558	–1,241	–1,785	–21	–3,606
Other changes	196	–357	152	–5	–13
Balance as at Dec. 31, 2023	603	5,015	6,032	18	11,669

¹ Amount restated

Loss allowances for investments

€ million

	Stage 1	Stage 2	Stage 3	POCI	Total
Balance as at Jan. 1, 2022	72	264	5	–	341
Restatements according to IAS 8	–1	1	–	–	–
Restated balance as at Jan. 1, 2022	71	265	5	–	341
Additions	13	45	1	–	59
Reversals	–9	–49¹	–3	–	–60
Balance as at Dec. 31, 2022	76	261	4	–	341
Additions	4	95	1	–	101
Reversals	–20	–177	–2	–	–199
Other changes	8	–8	–	–	–
Balance as at Dec. 31, 2023	67	172	4	–	242

¹ Amount restated

Loss allowances for other assets

€ million

	Stage 1	Stage 2	Stage 3	POCI	Total
Balance as at Jan. 1, 2022	2	–	–	–	2
Balance as at Dec. 31, 2022	2	–	–	–	2
Reversals	–1	–	–	–	–1
Balance as at Dec. 31, 2023	1	–	–	–	1

25. Investments held by insurance companies

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Investment property	3,866	4,028
Investments in subsidiaries, joint ventures and associates	872	910
Mortgage loans	12,008	10,960
Promissory notes and loans	5,913	5,857
Registered bonds	4,859	4,790
Other loans	984	764
Variable-yield securities	11,871	13,023
Fixed-income securities	53,193	47,259
Derivatives (positive fair values)	159	278
Deposits with ceding insurers and other investments	40	56¹
Assets related to unit-linked contracts	20,563	16,429
Total	114,329	104,356

¹ Amount restated

26. Property, plant and equipment, investment property and right-of-use assets

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Land and buildings	6,996	6,963
Office furniture and equipment	1,312	1,308
Investment property	280	293
Other fixed assets	8,980	8,162
Right-of-use assets	549	615
Total	18,117	17,341

27. Income tax assets and liabilities

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Income tax assets	8,929	9,841
Current income tax assets	1,072	1,052
Deferred tax assets	7,858	8,789¹
Income tax liabilities	5,859	5,907
Current income tax liabilities	1,704	1,185
Deferred tax liabilities	4,155	4,722¹

	Deferred tax assets		Deferred tax liabilities
	Dec. 31, 2023 € million	Dec. 31, 2022 € million	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Tax loss carryforwards	118	91
Loans and advances to banks and customers	33	37	222	446
Financial assets and liabilities held for trading, and hedging instruments (positive and negative fair values)	812	1,145	29	63
Investments	635	1,100	5	9
Loss allowances	1,465	1,563¹	–	–
Investments held by insurance companies	2,745	3,602¹	223	–¹
Deposits from banks and customers	196	219	310	470
Debt certificates issued including bonds	2	2	713	827
Provisions	3,085	2,686	106	90
Insurance contract liabilities	1,162	1,033¹	4,746	5,307¹
Other balance sheet items	471	529¹	687	728¹
Total (gross)	10,744	12,008	7,041	7,941
Netting of deferred tax assets and deferred tax liabilities	–2,886	–3,219¹	–2,886	–3,219¹
Total (net)	7,858	8,789	4,155	4,722

¹ Amount restated

Deferred tax assets and liabilities are recognized for temporary differences in respect of the balance sheet items shown in the table as well as for tax loss carryforwards.

28. Other assets

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Other assets held by insurance companies	3,570	3,759¹
Goodwill	171	171
Other intangible assets	607	696
Prepaid expenses	351	322
Other receivables	4,536	4,916
Non-current assets and disposal groups classified as held for sale	1,790	19
Fair value changes of the hedged items in portfolio hedges of interest-rate risk	–6,463	–12,763
Residual other assets	1,115	1,642
Total	5,677	–1,238

¹ Amount restated

The breakdown of other assets held by insurance companies is as follows:

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Intangible assets	160	145
Reinsurance contract assets	368	560
Benefit reserve	34	36¹
Provision for claims outstanding	334	524¹
Insurance contract assets	1	2
Benefit reserve	1	3¹
Provision for claims outstanding	–	–1¹
Receivables	1,028	1,002
Receivables arising out of direct insurance operations	114	106¹
Receivables arising out of reinsurance operations	41	48¹
Other receivables	873	848
Credit balances with banks, checks and cash on hand	647	703
Property, plant and equipment	416	401
Residual other assets	952	947
Prepaid expenses	53	47
Remaining assets held by insurance companies	899	900¹
Loss allowances	–2	–1
Total	3,570	3,759

¹ Amount restated

Property, plant and equipment includes right-of-use assets in the amount of €57 million (2022: €56 million).

29. Deposits from banks and customers

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Deposits from banks	137,444	166,002
Repayable on demand	14,834	13,485
With agreed maturity or notice period	122,610	152,517
Deposits from customers	1,033,200	1,032,861
Savings deposits and home savings deposits	204,453	239,988
Savings deposits with agreed notice period of three months	131,577	169,677
Savings deposits with agreed notice period of more than three months	9,174	4,001
Home savings deposits	63,702	66,310
Other deposits from customers	828,747	792,873
Repayable on demand	606,512	673,363
With agreed maturity or notice period	222,235	119,510

30. Debt certificates issued including bonds

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Bonds issued	81,504	56,733
Mortgage Pfandbriefe	56,187	50,579
Public-sector Pfandbriefe	1,737	1,273
Other bonds	23,580	4,880
Other debt certificates issued	15,929	14,416
Total	97,433	71,149

31. Financial liabilities held for trading

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Derivatives (negative fair values)	17,136	26,642
Interest-linked contracts	13,692	21,218
Currency-linked contracts	1,897	3,148
Share- and index-linked contracts	1,362	1,899
Credit derivatives	73	107
Other contracts	112	270
Short positions	701	1,017
Bonds issued including share- and index and other debt certificates	20,836	20,014
Liabilities	5,329	1,104
Liabilities from commodities transactions and commodity lending	41	48
Total	44,043	48,825

32. Provisions

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Provisions for defined benefit plans	5,939	5,276
Provisions for loan commitments	345	352
Provisions for financial guarantee contracts	233	199
Other provisions for loans and advances	52	51
Provisions relating to building society operations	913	1,053
Residual provisions	4,109	4,096
Total	11,592	11,027

33. Insurance contract liabilities

	2023 € million	2022 € million
Insurance contract liabilities	105,150	98,328
Benefit reserve	93,033	86,740¹
Provision for claims outstanding	12,117	11,587¹
Reinsurance contract liabilities	1	–
Benefit reserve	2	1¹
Total	105,151	98,328

¹ Amount restated

Claims rate trend for direct non-life insurance business including claim settlement costs

The following table shows the change in the gross provision for claims outstanding for direct non-life insurance business plus payments made against the original provision:

€ million	Total	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Gross provision for claims outstanding
At the end of the year		5,237	4,779	5,067
1 year later			4,882	5,152	3,930
2 years later				5,196	3,885	4,074
3 years later					3,865	4,057	3,927
4 years later						4,027	3,904	3,583
5 years later							3,896	3,574	3,574
6 years later								3,559	3,559	3,240
7 years later									3,531	3,231	3,059
8 years later										3,220	3,044
9 years laterr											3,038
Total claim payments made	34,172	2,531	3,853	4,468	3,430	3,681	3,579	3,332	3,322	3,072	2,904
Provision for claims outstanding in respect of claims that occurred in 2014 to 2023	6,279	2,706	1,029	728	435	346	317	227	209	148	134
Provision for claims outstanding in respect of claims that occurred before 2014	1,031
Effect of discounting	–953
Risk adjustment	82
Gross provision for claims outstanding	6,439

The following table shows the change in the net provision for claims outstanding for direct non-life insurance business plus payments made against the original provision:

€ million	Total	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Net provision for vclaims outstanding
At the end of the year		5,099	4,762	5,057
1 year later			4,864	5,142	3,948
2 years later				5,072	3,900	4,078
3 years later					3,882	4,061	3,946
4 years later						4,029	3,922	3,588
5 years later							3,914	3,578	3,604
6 years later								3,562	3,589	3,247
7 years later									3,561	3,238	3,061
8 years later										3,227	3,048
9 years later											3,043
Total claim payments made	34,184	2,462	3,843	4,465	3,449	3,686	3,599	3,339	3,354	3,079	2,908
Provision for claims outstanding in respect of claims that occurred in 2014 to 2023	6,069	2,637	1,021	607	433	343	315	223	207	148	135
Provision for claims outstanding in respect of claims that occurred before 2014	1,008
Effect of discounting	–943
Risk adjustment	78
Net provision for claims outstanding	6,212

Claims rate trend for inward reinsurance business

The following table shows the change in the gross provision for claims outstanding for inward business plus payments made against the original provision:

€ million	Total	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Gross provision for claims outstanding
At the end of the year		1,937	1,989	2,079
1 year later			2,385	2,512	2,944
2 years later				2,543	2,974	2,688
3 years later					2,922	2,749	2,352
4 years later						2,748	2,364	2,355
5 years later							2,363	2,379	1,631
6 years later								2,367	1,637	1,391
7 years later									1,616	1,380	1,225
8 years later										1,364	1,237
9 years later											1,218
Total claim payments made	15,591	325	1,253	1,695	2,250	2,284	2,001	2,050	1,404	1,208	1,121
Provision for claims outstanding in respect of claims that occurred in 2014 to 2023	5,872	1,612	1,132	848	672	464	362	317	212	156	97
Provision for claims outstanding in respect of claims that occurred before 2014	360
Effect of discounting	–959
Risk adjustment	72
Gross provision for claims outstanding	5,345

The following table shows the change in the net provision for claims outstanding for inward business plus payments made against the original provision:

€ million	Total	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Net provision for claims outstanding
At the end of the year		1,893	1,978	1,942
1 year later			2,374	2,369	2,947
2 years later				2,391	2,974	2,686
3 years later					2,924	2,747	2,350
4 years later						2,745	2,362	2,353
5 years later							2,361	2,377	1,632
6 years later								2,366	1,639	1,389
7 years later									1,618	1,378	1,225
8 years later										1,362	1,237
9 years later											1,218
Total claim payments made	15,489	324	1,248	1,601	2,253	2,282	1,999	2,049	1,406	1,207	1,120
Provision for claims outstanding in respect of claims that occurred in 2014 to 2023	5,763	1,569	1,126	790	671	463	362	317	212	155	98
Provision for claims outstanding in respect of claims that occurred before 2014	358
Effect of discounting	–954
Risk adjustment	71
Net provision for claims outstanding	5,238

Maturity analysis

The following table contains an analysis of the remaining undiscounted contractual net cash flows for insurance contracts, by estimated maturity. Benefit reserves measured under the premium allocation approach were excluded from this analysis.

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
≤ 1 year	5,768	5,913
> 1 year - 2 years	3,517	3,461
> 2 years - 3 years	3,145	2,817
> 3 years - 4 years	2,549	2,972
> 4 years - 5 years	2,727	2,610
> 5 years - 10 years	17,808	17,618
> 10 years - 20 years	32,449	32,892
> 20 years - 30 years	34,501	36,269
> 30 years - 40 years	26,134	27,845
> 40 years - 50 years	18,805	19,202
> 50 years	24,604	27,350

The insurance contract liabilities repayable on demand amounted to €61,991 million (December 31, 2022: €56,083 million).

34. Other liabilities

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Other liabilities of insurance companies	5,529	5,429¹
Other liabilities and accruals	3,838	3,468
Liabilities included in disposal groups	1,533	–
Fair value changes of the hedged items in portfolio hedges of interest-rate risk	–577	–1,062
Lease liabilities	571	631
Residual other liabilities	988	1,176
Total	11,883	9,642

¹ Amount restated

The breakdown of other liabilities held by insurance companies is as follows:

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Residual provisions	394	354
Provisions for employee benefits	344	311
Provisions for share-based payment transactions	4	3
Other provisions	46	39
Payables and residual other liabilities	5,136	5,075
Subordinated capital	100	90
Deposits received from reinsurers	6	24¹
Payables arising out of direct insurance operations	340	305¹
Payables arising out of reinsurance operations	8	61¹
Debt certificates issued including bonds	39	36
Deposits from banks	348	318
Derivatives (negative fair values)	44	223
Liabilities from investment contracts	3,145	2,932¹
Lease liabilities from insurance business	68	72
Other liabilities	345	327¹
Residual other liabilities	694	686¹
Total	5,529	5,429

¹ Amount restated

35. Subordinated capital

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Subordinated liabilities	6,699	6,113
Profit-sharing rights	9	4
Share capital repayable on demand	5	12
Total	6,713	6,129

36. Equity

Breakdown of subscribed capital

	Dec. 31, 2023 € million	Dec. 31, 2022 € million
Cooperative shares	17,145	16,260
Share capital	228	188
Capital of silent partners	37	37
Total	17,410	16,485

The capital reserves comprise the amounts by which the notional value of the shares of the corporations included in the consolidated financial statements was exceeded upon the issuance of the shares.

Retained earnings contain the undistributed equity earned by the companies included in the consolidated financial statements as well as the gains and losses arising on remeasurements of defined benefit plans after taking into account deferred taxes.

Accumulated other comprehensive income consists of the following items:

	No reclassification to the income statement		Reclassification to the income statement
	Reserve from equity instruments for which the fair value OCI option has been exercised	Reserve from gains and losses in relation to financial liabilities for which the fair value option has been exercised, attributable to changes in own credit risk	Reserve from debt instruments measured at fair value through other comprehensive income	Currency translation reserve	Reserve from insurance contracts measured at fair value through other comprehensive income
€ million
Equity as at Jan. 1, 2022	719	–51	1,218	61	–
Restatements according to IAS 8	590	–	2,432	3	–2,842
Equity restated as at Jan. 1, 2022	1,309	–51	3,650	64	–2,842
Other comprehensive income/loss	–405¹	113	–14,528¹	19¹	11,909¹
Total comprehensive income/loss	–405	113	–14,528	19	11,909
Changes in the scope of consolidation	4	–	–	1	–
Acquisition/disposal of non-controlling interests	–	–	3	–	–
Reclassifications within equity	–115¹	–5	–	–	–
Equity as at Dec. 31, 2022	793	56	–10,874	84	9,067
Other comprehensive income/loss	–120	196	2,977	–18	–2,460
Total comprehensive income/loss	–120	196	2,977	–18	–2,460
Acquisition/disposal of non-controlling interests	–	–	–4	–	4
Reclassifications within equity	–62	1	–	–	–
Equity as at Dec. 31, 2023	611	254	–7,901	66	6,611

¹ Amount restated

The additional equity components include Additional Tier 1 (AT1) capital issued by MHB, reduced by shares held by companies included in the consolidated financial statements. The AT1 capital was issued in the previous years in a nominal amount of CHF 200 million in order to generate additional regulatory Tier 1 capital. In the financial year 2023, the AT1 capital increased by €10 million as a result of the acquisition of a mortgage bank by MHB.

The non-controlling interests include the shares in the equity of consolidated companies that are not attributable to the Cooperative Financial Network.