| | 2024 | 2023 |
|---|---|---|
| Other finance expenses on financial liabilities not measured at fair value | | |
| Subordinated liabilities | -115 | -115 |
| Borrowings | -179 | -74 |
| Due to banks | -149 | -75 |
| Other financial liabilities | -3 | -2 |
| | | |
| Other finance expenses on other liabilities | | |
| Employee benefits | -176 | -142 |
| Derivatives | -3,395 | -2,030 |
| Other finance or fee expenses | -1 | -11 |
| | | |
| Interest expenses on financial assets | -13 | -3 |
| | | |
| Total other finance expenses | -4,031 | -2,451 |
The increase in finance expenses on employee benefits relates to the acquisition of Aegon partly offset by the accrual on the DB obligation of post-employment benefits pensions as a result of a decreased discount rate, see section 7.5.15. The interest expense is calculated based on interest rates as of 31 December of the previous year. (31 December 2023: 3.42%; 31 December 2022: 3.67%).
Finance expenses on derivatives increased due to increased variable interest rates and the acquisition of Aegon NL.
Other finance expenses increased by € 1,580 million mainly due to higher expenses on derivatives contracts (€ 1,365 million) caused by higher variable interest rates. In combination with € 1,281million higher interest income on derivatives as part of the Direct investment income line, the net interest income on derivative contracts decreased by € 84 million.