Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Profit or loss before tax from continuing operations must equal a calculation over eleven rows (EBA rule v08931_m)

A warning in the funding plans return (FP), on template P 04.02, statement of profit or loss for small and non complex credit institutions.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Profit or (-) loss before tax from continuing operations must equal these eleven worked out:

  • Interest income
  • Minus interest expense
  • Fee and commission income
  • Minus fee and commission expenses
  • Operating gains or (-) losses from financial assets and liabilities
  • Other items (+/-) contributing to total net operating income, net for small and non-complex institutions
  • Minus administrative expenses
  • Minus depreciation
  • Minus (increases or (-) decreases of the fund for general banking risks, net)
  • Minus (impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss)
  • Other items (+/-)contributing to the profit or (-)loss before tax from continuing operations for small and non-complex institutions

EBA checks it for four columns: actual current position, planned Year 1 Position, planned Year 2 Position and planned Year 3 Position. That makes four checks. A failure names the one that failed.

How the Line4 Check report words itShow

The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.

Actual current position: Profit or (-) loss before tax from continuing operations = Interest income - (Interest expense) + Fee and commission income - (Fee and commission Expenses) + Operating gains or (-) losses from financial assets and liabilities + Other items (+/-) contributing to total net operating income, net for small and non-complex institutions - (Administrative Expenses) - (Depreciation) - (Increases or (-) decreases of the fund for general banking risks, net) - (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) + Other items (+/-)contributing to the profit or (-)loss before tax from continuing operations for small and non-complex institutions

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark P 04.02 as reported.
  5. 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.

The cells it reads

Statement of profit or loss for small and non complex credit institutions (P 04.02)

Rows

  • 010Interest income
  • 090(Interest expense)
  • 200Fee and commission income
  • 210(Fee and commission Expenses)
  • 297Operating gains or (-) losses from financial assets and liabilities
  • 354Other items (+/-) contributing to total net operating income, net for small and non-complex institutions
  • 360(Administrative Expenses)
  • 390(Depreciation)
  • 455(Increases or (-) decreases of the fund for general banking risks, net)
  • 460(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss)
  • 609Other items (+/-)contributing to the profit or (-)loss before tax from continuing operations for small and non-complex institutions
  • 610Profit or (-) loss before tax from continuing operations

Columns

  • 010Actual current position
  • 020Planned Year 1 Position
  • 030Planned Year 2 Position
  • 040Planned Year 3 Position
Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{P_04.02,r610,c010,} = {P_04.02,r010,c010,} - {P_04.02,r090,c010,} + {P_04.02,r200,c010,} - {P_04.02,r210,c010,} + {P_04.02,r297,c010,} + {P_04.02,r354,c010,} - {P_04.02,r360,c010,} - {P_04.02,r390,c010,} - {P_04.02,r455,c010,} - {P_04.02,r460,c010,} + {P_04.02,r609,c010,}

The next three:

{P_04.02,r610,c020,} = {P_04.02,r010,c020,} - {P_04.02,r090,c020,} + {P_04.02,r200,c020,} - {P_04.02,r210,c020,} + {P_04.02,r297,c020,} + {P_04.02,r354,c020,} - {P_04.02,r360,c020,} - {P_04.02,r390,c020,} - {P_04.02,r455,c020,} - {P_04.02,r460,c020,} + {P_04.02,r609,c020,}{P_04.02,r610,c040,} = {P_04.02,r010,c040,} - {P_04.02,r090,c040,} + {P_04.02,r200,c040,} - {P_04.02,r210,c040,} + {P_04.02,r297,c040,} + {P_04.02,r354,c040,} - {P_04.02,r360,c040,} - {P_04.02,r390,c040,} - {P_04.02,r455,c040,} - {P_04.02,r460,c040,} + {P_04.02,r609,c040,}{P_04.02,r610,c030,} = {P_04.02,r010,c030,} - {P_04.02,r090,c030,} + {P_04.02,r200,c030,} - {P_04.02,r210,c030,} + {P_04.02,r297,c030,} + {P_04.02,r354,c030,} - {P_04.02,r360,c030,} - {P_04.02,r390,c030,} - {P_04.02,r455,c030,} - {P_04.02,r460,c030,} + {P_04.02,r609,c030,}

Every FP rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.