Notes to the income statement
10 Revenue
Other commission and fees include revenue from property brokerage of € 11,325 thsd (previous year: € 4,218 thsd).
11 Other revenue
All figures in €'000 | 2015 | 2014 |
Reversal of impairment losses/income from written-off receivables | 2,862 | 2,096 |
Income from the reversal of provisions | 2,714 | 3,482 |
Income from the reversal of deferred obligations | 2,253 | 1,240 |
Own work capitalised | 1,322 | 746 |
Rent | 1,259 | 1,271 |
Income from the disposal of fixed assets | 915 | – |
Remuneration of management | 896 | 1,029 |
Cost transfers to commercial agents | 745 | 841 |
Income from the disposal of fixed assets | 80 | 2,070 |
Sundry other income | 8,483 | 8,602 |
Total | 21,529 | 21,378 |
The item “Reversal of impairments/income from written-off receivables” refers to the item “Receivables from clients in the banking business” at € 1,072 thsd (previous year: € 1,440 thsd) and to the item “Other receivables and assets” at € 1,790 thsd (previous year: € 656 thsd). It contains income from the reversal of provisions in the lending business of € 109 thsd (previous year: € 88 thsd). This revenue is offset against expenses from the allocation of allowances for bad debts, which are recorded under “Other operating expenses”.
For more information on income from the reversal of provisions, please refer to Note 30.
Income from the reversal of deferred obligations essentially comprises income from the reversal of provisions for profit-sharing payments.
Own work capitalised results from the collaboration of Group employees in the development of acquired software and software created in-house.
Rental income essentially results from the letting of an investment property that was classified as non-current asset held for sale on the balance sheet date.
Income from the disposal of investments results from the sale of the stake in Absolventa GmbH, Berlin.
The item “Remuneration for management” contains pre-allocated profits due to management tasks for private equity companies.
The item “Cost transfers to commercial agents” essentially comprises income from cost transfers of insurance companies, services and material costs.
Sundry other income includes income from cost reimbursement claims, income from investments and offset remuneration in kind.
12 Commission expenses
Commission expenses mainly consist of the commission payments and other remuneration components for the self-employed MLP consultants.
13 Interest expenses
Interest expenses of € 1,259 thsd (previous year: € 2,072 thsd) are attributable to interest charges for liabilities due to clients in the banking business.
14 Personnel expenses
Personnel expenses essentially include salaries and wages, remuneration and other payments to employees. The social security contributions include the statutory contributions to be borne by the company in the form of social security insurance premiums. Expenses for old-age provisions and benefits mainly include the employer’s shares of supplementary occupational pension provision.
15 Depreciation and impairments
Impairments include impairment losses of € 1,584 thsd for software that is still in the development stage (previous year: € 0 thsd).
The development of non-current assets is disclosed in Note 21 (intangible assets), Note 22 (property, plant and equipment) and Note 23 (investment property / non-current assets held for sale).
16 Other operating expenses
All figures in €'000 | 2015 | 2014 |
IT operations | 47,610 | 47,932 |
Rental and leasing | 14,376 | 13,419 |
Consultancy | 12,995 | 13,209 |
Administration operations | 11,528 | 11,236 |
Representation and advertising | 7,941 | 7,892 |
External services – banking business | 7,277 | 6,456 |
Other external services | 6,528 | 3,992 |
Training and further education | 4,369 | 3,554 |
Premiums and fees | 4,231 | 3,591 |
Travel expenses | 3,863 | 3,714 |
Depreciation/allowances for bad debts | 2,706 | 4,118 |
Insurance | 2,624 | 2,393 |
Entertainment | 2,588 | 2,803 |
Expenses for commercial agents | 2,532 | 1,384 |
Maintenance | 2,390 | 2,197 |
Goodwill | 1,319 | 494 |
Other employee-related expenses | 1,290 | 1,151 |
Audit | 1,071 | 1,002 |
Supervisory Board remuneration | 969 | 1,032 |
Sundry other operating expenses | 6,027 | 5,825 |
Total | 144,234 | 137,394 |
The costs of IT operations are mainly attributable to IT services and computer centre services that have been outsourced to an external service provider.
The consulting costs are made up of tax advice costs, legal advice costs as well as general and IT consulting costs. Consulting expenses include expenses of € 1,119 thsd in the context of the acquisition of the DOMCURA Group.
The expenses for administration operations contain costs relating to building operations, office costs and communication costs.
Expenses for representation and advertising include costs incurred due to media presence and client information activities.
The item “External services - banking business” mainly contains securities settlement and transaction costs in connection with the MLP credit card. Expenses for commercial agents include costs for former consultants and the training allowance granted for new consultants.
Amortisation expenses/impairments on other receivables comprise amortisation expenses/allowances for other receivables and other assets of € 2,336 thsd (previous year: € 3,215 thsd) and amortisation expenses/impairments on receivables due from clients in the banking business of € 370 thsd (previous year: € 903 thsd).
Sundry other operating expenses essentially comprise expenses for other taxes, passenger vehicles, literature and charitable donations.
17 Earnings from investments accounted for using the equity method
Earnings from investments accounted for using the equity method were € 1,836 thsd in the financial year (previous year: € 1,127 thsd) and resulted from the share of earnings in MLP Hyp GmbH. In line with a company agreement, the profit distribution of MLP Hyp GmbH is disproportionate.
Investments accounted for using the equity method relate only to the 49.8% share in MLP Hyp GmbH, Wiesloch. The company operates the joint mortgage financing business of MLP Finanzdienstleistungen AG, Wiesloch, and Interhyp AG, Munich.
The following table contains summarised financial information on MLP Hyp GmbH:
All figures in €'000 | Dec. 31, 2015 | Dec. 31, 2014 |
Non-current assets | 53 | 58 |
Current assets | 7,640 | 5,580 |
Non-current liabilities | – | -13 |
Current liabilities | -1,868 | -891 |
Net assets (100 %) | 5,825 | 4,734 |
of which MLP's share in net assets (49.8 %) | 2,901 | 2,358 |
Incidental acquisition costs | 151 | 151 |
Dividend payout | -1,279 | -1,015 |
Cumulative disproportionate profit | 1,708 | 1,279 |
Carrying amount of the investment | 3,481 | 2,772 |
Revenue | 12,526 | 9,226 |
Total comprehensive income (100 %) | 2,825 | 1,734 |
of which MLP's share in total comprehensive income (49.8 %) | 1,407 | 864 |
Disproportionate profit for the current financial year (65 %) | 429 | 264 |
MLP's share in total comprehensive income | 1,836 | 1,127 |
18 Finance cost
Other interest and similar income of € 140 thsd (previous year: € 293 thsd) is attributable to interest income from deposits with financial institutions which were not included in the banking business segment and € 49 thsd (previous year: € 41 thsd) is attributable to income from the discounting of provisions. Other interest and similar expenses include expenses from the accrued interest of other provisions totalling € 584 thsd (previous year: € 833 thsd).
19 Income taxes
The current taxes on income and profit include expenses of € 1,967 thsd (previous year: € 2,062 thsd) which relate to previous periods.
The current and deferred tax is calculated using the relevant country-specific income tax rate. The anticipated combined income tax rate for domestic companies is made up of corporation tax at 15.0% (previous year: 15.0%), the solidarity surcharge at 5.5% (previous year: 5.5%) and an average municipal trade tax rate of 13.37% (previous year: 13.37%) and amounts to 29.19% (previous year: 29.19%).
The taxation rates likely to be applicable at their time of implementation should be used to calculate deferred income taxes. The taxation rates used here are those that are valid or have been announced for the periods in question as of the balance sheet date.
The following reconciliation account shows the relationship between the earnings before tax and the taxes on income and profit in the financial year:
All figures in €'000 | 2015 | 2014 |
Earnings before tax | 27,953 | 37,649 |
Group income tax rate | 29.19 % | 29.19 % |
Calculated income tax expenditure in the financial year | 8,159 | 10,990 |
Tax-exempt earnings and permanent differences | -3,587 | -2,881 |
Non-deductible expenses | 1,485 | 977 |
Divergent trade taxation charge | 211 | 393 |
Effects of other taxation rates applicable abroad | 4 | 4 |
Income tax not relating to the period (current and deferred) | 2,249 | -846 |
Tax effects from tax rate changes | 0 | 53 |
Other | -351 | 4 |
Income taxes | 8,170 | 8,694 |
The effective income tax rate applicable to the earnings before tax is 29.2% (previous year: 23.1%).
The item of tax-exempt earnings and permanent differences in earnings includes profit contributions from the FERI Group and the tax-free dividends of MLP Hyp GmbH.
Non-deductible expenses are due to entertainment costs, gifts and other such matters.
The tax deferrals result from the balance sheet items as follows:
All figures in €'000 | Deferred tax assets | Deferred tax liabilities | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible assets | 1,381 | 1,145 | 13,579 | 10,992 |
Property, plant and equipment | – | – | 3,577 | 3,327 |
Financial assets | 110 | – | 262 | 340 |
Investment property | – | – | 833 | 919 |
Other assets | 3,509 | 2,213 | 210 | 580 |
Provisions | 10,347 | 11,189 | 1,843 | – |
Liabilities | 1,474 | 935 | 33 | 0 |
Gross value | 16,821 | 15,482 | 20,337 | 16,158 |
Netting of deferred tax assets and liabilities | -9,788 | -8,754 | -9,788 | -8,754 |
Total | 7,033 | 6,728 | 10,549 | 7,404 |
The deferred tax expense recognised under other comprehensive income outside the income statement is € 636 thsd (previous year: tax income of € 2,312 thsd).
Tax refund claims include € 9,378 thsd (previous year: € 10,554 thsd) of corporation tax and € 5,515 thsd (previous year: € 8,189 thsd) of trade tax. The major portion of € 14,668 thsd (previous year: € 18,704 thsd) is attributable to MLP AG.
Tax liabilities are made up of € 2,638 thsd (previous year: € 3,408 thsd) of corporation tax and € 1,369 thsd (previous year: € 2,123 thsd) of trade tax, of which € 333 thsd (previous year: € 4,000 thsd) is attributable to MLP AG.
The tax liabilities are due to taxes on the income and profit of the individual companies based on the corresponding national tax regime. Contingent tax liabilities are shown under deferred tax liabilities.
As of December 31, 2014, MLP established a provision of € 4 million for anticipated retrospective tax payments arising from the tax audit by the fiscal authorities. As a result of a reassessment of the circumstances investigated in conclusion of the audit, additional tax expenses of € 1.1 million and an interest charge of € 2.0 million were recognised in the finance cost in the third quarter of 2015.
In two further disputed cases, MLP anticipates being able to assert its legal position based on the expert’s reports available. In this respect, MLP has recognised an asset for the retrospective tax payment made.
20 Earnings per share
The calculation for the basic and diluted earnings per share is based on the following data:
The basic and diluted earnings per share are € 0.18 (previous year: € 0.27).