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29. Financial income and expense

 2016 2015
Interest to/from banks1(11)(10)1(13)(12)
Interest and other charges on bonds-(173)(173)-(184)(184)
Premiums (paid) received on IRS6(6)-6(6)-
Premiums (paid) received on forwards31(44)(13)6-6
Income and charges from equity investments and securities2(33)(31)703-703
Value adjustments on equity investments-(189)(189)-(401)(401)
Fair value gains (losses) through profit or loss38(11)271(1)-
Exchange rate differences314(308)6135(135)-
Financial income (expense) - related parties (Note 32)52(15)37104(27)77
Other financial income and expense15(66)(51)9(51)(42)

Net financial income showed a decrease of €mil. 266 compared to 2015. However, in 2015 this item included the net effect of the sales in the Transportation sector (i.e. a capital gain of €mil. 702 from the disposal of

Ansaldo STS and a write-down of €mil. 353 of the equity investment in AnsaldoBreda, also as a result of said transactions, with a net positive effect of €mil. 349). As a whole, financial income and costs recognised in 2016 showed the following changes compared to 2015:

  • dividends, net of write-downs, increased by about €mil. 140 (excluding the write-down of AnsaldoBreda carried out during 2015, as noted above) in 2016;
  • lower interest, mainly as a result of the buy-back carried out during 2015;
  • foreign exchange gains and gains from fair value of derivatives for a total amount of €mil. 33 in 2016 against zero in 2015, when Leonardo only operated in the market to repay its own debt or on behalf of its subsidiaries, passing on any effect.

Finally, we note that in 2015 financial expenses included costs for €mil.48 deriving from the buy-back plan.

Value adjustments to equity investments are described in Note 9.

Fair value results through profit or loss are as follows:

Exchange rate swap1-11-1
Interest rate swaps-(1)(1)-(1)(1)
Ineffective portion of hedging swap37(10)27---