The following table sets out the fair value of the financial instruments held as at 31 December 2018. The fair value of listed government paper and interest-bearing securities is the market value. The fair value of unlisted government paper and interest-bearing securities is public quoted information if available or nominal value. The fair value of banks, loans and funds entrusted has been determined by calculating the net present value of expected interest and redemption cashflows, taking into account market interest rates as at the end of the year. Part of the loans and mortgages include caps and/or floors on the interest rates. For these instruments the fair value is determined by adding the present value of the contractual cash flows (based on forward rates) to the option value of these embedded caps and floors. An assumed prepayment rate is also included which differs per branch and between mortgages and business loans. We did not include a term structure in the spread. The fair value of the other items is assumed to be equal to the balance sheet value.

The fair value of the remaining assets also includes the deferred tax item. The premium and discount for the government paper and interest-bearing securities has been included in the balance sheet value of respectively the government paper and interest-bearing securities.

 

2018

2017

in thousands of EUR

Balance sheet
value

Fair value

Balance sheet
value

Fair value

1

The fair value is negatively impacted by the tax effect of all fair value adjustments which has been posted as other.

Assets

 

 

 

 

Cash

1,795,272

1,795,272

1,365,729

1,365,729

Government paper including discounts

26,504

26,510

Banks

237,055

237,062

216,375

216,287

Loans

7,273,780

7,362,465

6,597,901

6,663,791

Interest rate swaps to hedge the interest risk on fixed interest rate loans

–1,342

365

Interest-bearing securities including premiums/discounts

1,258,216

1,294,055

1,433,848

1,481,513

Interest rate swaps to hedge the interest risk on fixed interest rate securities

–1,226

450

Shares

20

20

20

20

Participating interests

22,448

22,448

14,649

14,649

Other

282,631

253,9231

246,422

220,0261

 

10,869,422

10,962,677

9,901,448

9,989,340

 

 

 

 

 

Liabilities

 

 

 

 

Banks

67,217

66,493

64,363

62,832

Funds entrusted

9,558,203

9,566,057

8,721,888

8,732,121

Other

112,781

112,781

102,302

102,301

Equity

1,131,221

1,131,221

1,012,895

1,012,895

Revaluation on equity

86,125

79,191

 

10,869,422

10,962,677

9,901,448

9,989,340

The estimated fair values provided by financial institutions are considered not to be comparable on an individual basis, due to the differences in valuation methods applied and the use of estimates in these valuations. The lack of an objective method of valuation means that estimated fair values are subjective in respect of the expected maturity and interest rates used.