Notes to the income statement

8 Revenue

All figures in €'00020172016
Old-age provision208,117221,480
Wealth management190,629166,360
Non-life insurance109,850105,626
Health insurance45,86345,777
Loans and mortgages17,01915,433
Other commission and fees18,40515,414
Total commission income 589,883570,090
Interest income18,86020,469

Other commission and fees include revenue from property brokerage of € 13,989 thsd (previous year: € 11,345 thsd). The revenue from the interest rate business includes negative interest from lending and money market transactions of € 1,146 thsd (previous year: € 78 thsd).

9 Other revenue

All figures in €'00020172016
Income from the reversal of provisions2,396238
Income from securities of the participation programme1,8781,786
Income from the reversal of deferred obligations1,3931,622
Cost transfers to commercial agents1,3351,088
Offset remuneration in kind719809
Remuneration of management527393
Income from investments485396
Own work capitalised176114
Income from currency translation2489
Income from the disposal of fixed assets5,95510,393
Sundry other income19,42419,810

For more information on income from the reversal of provisions, please refer to Note 27.


The income from securities of the participation programme essentially comprises income in the context of the sale of certificates in the financial year 2017. Please refer to Note 31 for further details.


Income from the reversal of deferred obligations essentially comprises income from the reversal of provisions for profit-sharing payments and performance-based remuneration, as well as income from the reversal of provisions for outstanding invoices.


The item "Cost transfers to commercial agents" essentially comprises income from cost transfers of insurance companies, services and material costs.


Own work capitalised results from the collaboration of Group employees in the development of acquired software.


The item "Remuneration for management" contains pre-allocated profits due to management tasks for private equity companies.


Among other things, sundry other income includes advertising subsidies, income from the performance of IT services, as well as income from cost reimbursement claims.

10 Commission expenses

Commission expenses mainly consist of the commission payments and other remuneration components for the self-employed MLP consultants.

11 Interest expenses

All figures in €'00020172016
Interest and similar expenses
Financial instruments measured at amortised cost1,0241,710
Available-for-sale financial instruments 82
Change fair value option
Financial instruments at fair value through profit and loss 220

Interest expenses of € 630 thsd (previous year: € 829 thsd) are attributable to interest charges for liabilities due to clients in the banking business.

12 Personnel expenses

All figures in €'00020172016
Salaries and wages106,674104,981
Social security contributions13,98514,339
Expenses for old-age provisions and benefits2,5862,527

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.

13 Depreciation and impairments

All figures in €'00020172016
Intangible assets9,9127,500
Property, plant and equipment5,3816,027
Intangible assets-10,399
Property, plant and equipment-36

Previous year impairments include impairment losses for a software development of € 10,399 thsd. There was no impairment loss in the financial year 2017.

14 Other operating expenses

All figures in €'00020172016
IT operations45,55448,075
Rental and leasing12,84514,824
Administration operations11,12111,381
External services – banking business9,0087,560
Other external services7,3457,638
Representation and advertising6,5046,935
Premiums and fees5,8105,180
Travel expenses4,4254,460
Expenses for commercial agents4,3213,240
Training and further education2,7282,663
Other employee-related expenses1,2991,138
Supervisory Board remuneration963973
Goodwill 4781,190
Sundry other operating expenses5,5945,738

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.


The expenses for administration operations include costs relating to building operations, office costs and communication costs.


The item "External services - banking business" mainly contains securities settlement and transaction costs in connection with the MLP credit card.


Expenses for representation and advertising include costs incurred due to media presence and client information activities.


Expenses for commercial agents include costs for former consultants and the training allowance granted for new MLP consultants.


Sundry other operating expenses essentially comprise expenses for other taxes, charitable donations, disposal of fixed assets and cars.

15 Earnings from investments accounted for using the equity method

Earnings from investments accounted for using the equity method were € 2,487 thsd in the financial year (previous year: € 2,106 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 Finanzberatung SE, Wiesloch, and Interhyp AG, Munich.


The shares developed as follows:

All figures in €'00020172016
Share as of Jan. 1 3,7513,481
Dividend payouts -2,106-1,836
Pro rata profit after tax 2,4872,106
Share as of Dec. 31 4,1323,751

The following table contains summarised financial information on MLP Hyp GmbH:


All figures in €'000Dec. 31, 2017Dec. 31, 2016
Non-current assets7453
Current assets10,1048,823
Non-current liabilities--
Current liabilities3,448-2,660
Net assets (100 %)6,7306,216
of which MLP's share in net assets (49.8 %)3,3523,096
Incidental acquisition costs151151
Dividend payout-2,213-1,708
Cumulative disproportionate profit 2,8432,213
Carrying amount of the investment4,1323,751
Total comprehensive income (100 %)3,7303,216
of which MLP's share in total comprehensive income (49.8 %)1,8581,601
Disproportionate profit for the current financial year (66.7 % / previous year 65.5 %)630505
MLP's share in total comprehensive income 2,4872,106

16 Finance cost

All figures in €'00020172016
Other interest and similar income209906
Interest expenses from financial instruments-166-133
Interest expenses from net obligations for defined benefit plans-429-489
Other interest costs-838-1,229
Other interest and similar expenses-1,433-1,851
Finance cost-1,223-946

Other interest and similar income of € 22 thsd (previous year: € 52 thsd) is attributable to interest income from deposits with financial institutions which were not included in the banking business segment and € 26 thsd (previous year: € 260 thsd) is attributable to income from the discounting of provisions. In addition to this, other interest and similar income includes negative interest on bank deposits of € -85 thsd (previous year: € -31 thsd). Other interest and similar expenses include expenses from the accrued interest of other provisions totalling € 558 thsd (previous year: € 627 thsd).

17  Income taxes

All figures in €'00020172016
Income taxes8,5824,052
of which current taxes on income and profit7,8715,340
of which deferred taxes711-1,287

The current taxes on income and profit include expenses of € -634 thsd (previous year: € -388 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 13.53% (previous year: 13.53%) and amounts to 29.36% (previous year: 29.36%).


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 €'00020172016
Earnings before tax36,37718,748
Group income tax rate29.36%29.36%
Calculated income tax expenditure in the financial year10,6805,504
Tax-exempt earnings and permanent differences-4,511-4,901
Non-deductible expenses2,5801,465
Divergent trade taxation charge89180
Effects of other taxation rates applicable abroad-366-21
Income tax not relating to the period (current and deferred)522,044
Other 57-219
Income taxes8,5824,052

The effective income tax rate applicable to the earnings before tax is 23.6% (previous year: 21.6%).


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 result from consultancy fees in connection with Group restructuring measures, entertainment expenses, gifts, as well as non-deductible operating expenses incurred in the context of tax-exempt dividends and capital gains, Supervisory Board remuneration and other relevant factors.


The tax deferrals result from the balance sheet items as follows:

All figures in €'000Deferred tax assetsDeferred tax liabilities
Dec. 31, 2017Dec. 31, 2016Dec. 31, 2017Dec. 31, 2016
Intangible assets4011,28811,38512,387
Property, plant and equipment--4,1723,854
Financial assets6-128201
Other assets1,1231,267377467
Gross value14,56616,07616,06216,911
Netting of deferred tax assets and liabilities-6,531-7,013-6,531-7,013

The deferred tax expense recognised under other comprehensive income outside the income statement is € 48 thsd (previous year: € 1,502 thsd).


Tax refund claims include € 7,197 thsd (previous year: € 6,906 thsd) of corporation tax and € 5,149 thsd (previous year: € 5,209 thsd) of trade tax. The major portion of € 11,881 thsd (previous year: € 12,090 thsd) is attributable to MLP SE.


Tax liabilities are made up of € 5,588 thsd (previous year: € 1,712 thsd) of corporation tax and € 4,655 thsd (previous year: € 1,935 thsd) of trade tax. € 2,572 thsd (previous year: € 2,511 thsd) thereof relate to MLP SE and € 6,633 thsd (previous year: € 0 thsd) to MLP Finanzberatung SE.


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.

18 Earnings per share


The calculation for the basic and diluted earnings per share is based on the following data:

All figures in €'00020172016
Basis of the basic / diluted net profit per share27,79614,696
All figures in number of units
Weighted average number of shares for the basic / diluted net profit per share109,334,686109,334,686

The basic and diluted earnings per share are € 0.25 (previous year: € 0.13).