(B) Notes to the Consolidated Income Statement (25) Net interest income 1 Jan-31 Dec 2008 1 Jan-31 Dec 2007 Euro mn Interest income from Property loans 1,059 966 Public-sector loans 89 85 Other lending and money market operations 430 493 Fixed-income securities and debt register claims 408 347 Current dividend income 16 12 Other interest income 0 0 Total interest income 2,002 1,903 Interest expenses for Bonds issued 503 506 Borrowed funds 434 437 Subordinated equity 74 77 Term deposits taken 411 324 Overnight deposits taken 91 122 Other banking transactions 17 26 Total interest expenses 1,530 1,492 Total 472 411 Interest income from property loans includes income from impaired loans (so-called unwinding) in the amount of 8 million (2007: 13 million). (26) Allowance for credit losses 1 Jan-31 Dec 2008 1 Jan-31 Dec 2007 Euro mn Additions 134 120 Reversals 55 125 Direct write-offs 11 84 Payments on loans and advances previously written off 10 2 Total 80 77 Apart from the standard amount required to be recognised in the allowance account for credit losses in 2008, we recognised additional valuation allowances of 34 million as a result of the current difficult market environment. 133Aareal Bank Group ­ Annual Report 2008 | Consolidated Financial Statements | Notes