Financial income and expenses

12 Months Ended

Dec. 31, 2023

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Financial income and expenses

7. Financial income and expenses

	2023  $m	2022  $m	2021  $m
Financial income
Financial income on deposits and money market funds	33	17	2
Interest income on loans and other assets	6	5	6
	39	22	8
Financial expenses
Interest expense on external borrowings	85	92	109
Interest expense on lease liabilities	29	29	29
Unwind of discount on deferred purchase consideration	1	–	1
Foreign exchange gains	(35)	(10)	–
Other charges	11	7	8
	91	118	147

Financial income comprises $24m (2022: $12m, 2021: $8m) relating to financial assets held at amortised cost and $15m (2022: $10m, 2021: $nil) relating to financial assets held at FVTPL.

Interest expense on external borrowings and unwind of discount on deferred purchase consideration relate to financial liabilities which are held at amortised cost. Other charges includes bank charges and non-bank interest expense.

In 2023, $43m (2022: $15m, 2021: $1m) was payable to the System Fund in relation to interest accumulated on the balance of cash received in advance of the consumption of points awarded through the IHG One Rewards loyalty programme. The expense and corresponding System Fund interest income are eliminated within financial expenses. On a net basis, financial income and expenses includes $1m (2022: $1m, 2021: $2m) of other interest which is also attributable to the System Fund.

 Net interest payable as calculated for bank covenants can be found on page 201.