9. Other financial income/expenses
The following table summarizes other financial income and expense for the years ended 31 December 2016 and 2015.
|
Year ended 31 December |
|
(thousands of €) |
2016 |
2015 |
Other financial income: |
|
|
Interest on bank deposit |
1,614 |
1,246 |
Effect of discounting long term R&D incentives receivables |
99 |
99 |
Currency exchange gain |
8,150 |
636 |
Other finance income |
87 |
7 |
Total other financial income |
9,950 |
1,987 |
|
|
|
Other financial expenses: |
|
|
Interest expenses |
(47) |
(46) |
Currency exchange loss |
(1,453) |
(1,310) |
Other finance charges |
(191) |
(182) |
Total other financial expense |
(1,692) |
(1,539) |
|
|
|
Total other net financial income |
8,257 |
448 |
Other financial income increased significantly by €8.0 million, or 401%, from €2.0 million for the year ended 31 December 2015 to €10.0 million for the year ended 31 December 2016. The increase primarly related to an exchange gain of €4.8 million on deposits held in U.S. dollar and exchange gains of €2.0 million realized on milestone payments from AbbVie and Gilead in U.S. dollar.
Other financial expenses increased by €0.2 million, or 10% from €1.5 million for the year ended 31 December 2015 to €1.7 million for the year ended 31 December 2016. Net exchange profit amounts to €6.7 million for the year ended 31 December 2016, compared to a net exchange loss of €0.7 million for the year ended 31 December 2015. Interest expenses were related to interests paid on financial lease.