20 Interest Expenses

The interest expenses mainly relate to interest expense on financial liabilities measured at amortized cost.

Interest Expenses

in € million	2020	2021

Interest expense from non-derivative financial liabilities	374.0	409.5
Swaps (current interest expense for the period)	16.8	20.6
Effects from the valuation of non-derivative financial instruments	-48.6	-43.3
Effects from the valuation of swaps	42.4	-20.4
Prepayment penalties and commitment interest	6.2	22.7
Interest accretion to provisions	6.2	10.2
Interest from leases	16.1	15.8
Other financial expenses	-1.7	-3.5
	411.4	411.6

The prepayment penalties include the fees for the unscheduled repayment of loans during the fixed interest period; in the reporting year, this applied in particular to the sale of unencumbered portfolios to the State of Berlin (Berlin Deal).

A reconciliation of net interest to net interest to be classified in accordance with IFRS 9 is shown in the following table:

Reconciliation of net interest to net interest to be classified in accordance with IFRS 9

in € million	2020	2021

Interest income	21.9	21.5
Interest expense	-411.4	-411.6
Net interest	-389.5	-390.1

Less:
Net interest from provisions for pensions in acc. with IAS 19	5.6	4.5
Net interest from other provisions in acc. with IAS 37	0.6	5.3
Net interest from leases	16.1	15.8
Net interest to be classified	-367.2	-364.5

The net interest classified pursuant to IFRS 9 is as follows:

Net interest classified pursuant to IFRS 9

in € million	2020	2021

Financial assets measured at (amortized) cost	21.8	21.1
Derivatives measured at FV through P&L	-59.2	-0.2
Financial liabilities measured at (amortized) cost	-329.8	-385.4
Classification of net interest	-367.2	-364.5