| | 2023 | 2022 |
|---|---|---|
| Other finance expenses on financial liabilities not measured at fair value | | |
| Subordinated liabilities | -115 | -51 |
| Borrowings | -198 | -3 |
| Savings deposits | -60 | - |
| Due to banks | -91 | -11 |
| Other financial liabilities | -2 | -2 |
| | | |
| Other finance expenses on other liabilities | | |
| Employee benefits | -142 | -35 |
| Derivatives | -2,117 | -313 |
| Other finance or fee expenses | -11 | -5 |
| | | |
| Interest expenses on financial assets | -1 | -28 |
| | | |
| Total other finance expenses | -2,736 | -449 |
Finance expenses on subordinated liabilities increased due to € 1 billion Tier 2 notes issued on 22 November 2022, see chapter 7.5.12.The increase in finance expenses on borrowings is mainly due to the acquisition of Aegon NL, see chapter 7.4.5.
The increase in finance expenses on employee benefits is due to the acquisition of Aegon NL, and due to a higher interest accrual on the DB obligation of post-employment benefits pensions as a result of an increased discount rate, see chapter 7.5.15. The interest expense is calculated based on interest rates as of 31 December of the previous year. (31 December 2022: 3.67%; 31 December 2021: 0.90%).
Finance expenses on derivatives increased due to increased variable interest rates and the acquisition of Aegon NL.