saxo-bank-annual-report-2015

NOTES – SAXO BANK GROUP
Note (DKK 1,000)
32 Hedge accounting
Hedge of net investments
The Group hedges the exchange rate risk of net investments in certain foreign entities net of goodwill by establishing hedge relationship
between the net investments and currency derivatives or a non-derivative currency financial liability designated as the hedging
instruments. The Group does not hedge the entities’ expected income or future transactions.
At 31 December 2015 the carrying amount of net investments in entities hedged amounted to DKK 1,282.7 million (2014: DKK
1,328.8 million) and the corresponding fair value of the hedging instrument amounted to DKK 1,272.7 million (2014: DKK 1,329.2
million).
Cash flow hedge
The Group hedges the exposure to variability in future cash flows due to changes in interest rates on the Groups mortgage with a variable
interest rate by establishing a hedge relationship between the debt and interest swaps designated as the hedging instruments.
At 31 December 2015, the carrying amount of mortgage hedged amounted to DKK 336 million (2014: DKK 348 million) and the fair
value of the hedging instruments amounted to DKK 80 million and nominal value DKK 336 million (2014: DKK 91 million and the
nominal value DKK 348 million).
The time periods in which the hedged cash flows are expected to occur and affect the statement of comprehensive income are as
follows:
2015 2014
Cash inflows
Within 1 year - 2,644
1-5 years 1,450 8,536
Over 5 years 1,422 7,436
Cash outflows
Within 1 year (16,130) (16,610)
1-5 years (53,150) (57,228)
Over 5 years (46,662) (58,928)
During 2015 losses of DKK 14.5 million (2014: DKK 13.9 million) relating to cash flow hedge were transferred from equity to profit and
loss and are reflected in interest expense. At 31 December 2015 net losses of DKK 10.9 million (2014: net gains of DKK 30.1 million) relating
to the cash flow hedges were recognised in other comprehensive income.
33 Operational leasing
2015 2014
Future operating lease payments
Within 1 year 45,355 48,024
From 1-5 years 41,399 35,928
More than 5 years - -
Total 86,754 83,952
The Group is the leesee in a number of operating leases, involving mainly leasing of office premises, car leasing, software leasing and
other.
Operating lease expenses recognised in the income statement in 2015 amounts to DKK 53.4 million (2014: DKK 62.4 million).
SAXO BANK · ANNUAL REPORT 2015 · 83