ANNUAL REPORT 2008 - Polymer Bank Notes of the World

2008 2007 Change€ € €Net realised pricegains/(losses) onsecurities andinterest rate futures 349,179,481 69,252,941 279,926,540Net realisedexchange rate andgold price gains 313,162,603 709,294,272 (396,131,669)Realised gainsarising fromfinancial operations 662,342,084 778,547,213 (116,205,129)The overall reduction in net realised exchangerate and gold price gains in 2008 was duemainly to the lower volume of gold sold in thatyear (see note 1, “Gold and gold receivables”).25 WRITE-DOWNS ON FINANCIAL ASSETS ANDPOSITIONS2008€2007€Change€Unrealisedprice losses onsecurities (2,164,000) (15,864,181) 13,700,181Unrealised pricelosses on interestrate swaps (476,831) (18,899) (457,932)Unrealisedexchange ratelosses (21,271) (2,518,369,734) 2,518,348,463Total writedowns(2,662,102) (2,534,252,814) 2,531,590,712In 2008 this expense was due mainly to thewrite-down of the acquisition cost of individualsecurities shown on the Balance Sheet to theirmarket value as at 30 December 2008.26 NET EXPENSE FROM FEES AND COMMISSIONS2008€2007€Change€Income from fees andcommissions 588,052 263,440 324,612Expenses relating tofees and commissions (737,059) (885,131) 148,072Net expense from feesand commissions (149,007) (621,691) 472,684Income under this heading includespenalties imposed on credit institutions fornon-compliance with the minimum reserverequirements. Expenses relate to fees payableon current accounts and in connection withthe execution of foreign currency interest ratefutures (see note 18, “Interest rate futures”).27 INCOME FROM EQUITY SHARES ANDPARTICIPATING INTERESTSDividends received on shares in the BIS(see note 6, “Other assets”) are shown under thisheading.28 OTHER INCOMEOther miscellaneous income during the yeararose principally from the contributions of othercentral banks to the cost of a service contractheld centrally by the ECB with an externalprovider of an IT network, and the transfers ofunused administrative provisions to the Profitand Loss Account.29 STAFF COSTSSalaries, allowances, staff insurance and othermiscellaneous costs of €149.9 million (2007:€141.7 million) are included under this heading.Staff costs of €1.1 million (2007: €1.1 million)incurred in connection with the construction of thenew ECB premises have been capitalised and areexcluded from this item. Salaries and allowances,including the emoluments of holders of seniormanagement positions, are modelled in essenceon, and are comparable with, the remunerationscheme of the European Communities.Members of the Executive Board receive a basicsalary and additional allowances for residenceand representation. In the case of the President,an official residence owned by the ECB isprovided in lieu of a residence allowance. Subjectto the Conditions of Employment for Staff ofthe European Central Bank, members of theExecutive Board are entitled to household, childand education allowances, depending on theirECBAnnual Report2008237