in thousands of EUR

2019

2018

Loans

8,221,227

7,287,126

Provision for doubtful debts

–33,757

–39,156

Balance sheet value as at 31 December

8,187,470

7,247,970

This relates to loans to customers.

Prior year figures have been adjusted for an amount of EUR -25,810 due to a change of the accounting principle regarding the effective interest rate methodology. For further explanation see the general accounting principles.

As part of the interest rate risk management Triodos Bank entered into interest rate swaps to hedge the interest risk on fixed interest rate loans. The critical terms of the interest rate swaps such as nominal amount, maturity date and interest payment dates fully match the terms of the respective loans. The total notional value of these loans is EUR 153.0 million which equals the notional value of the interest rate swaps (2018: EUR 142.3 million). The fair value of the interest rate swaps as at 31 December 2019 is EUR -2.4 million (2018: EUR -1.3 million). Triodos Bank applies cost price hedge accounting on these interest rate swaps and therefore the fair value is not recognised on the balance sheet.

Loans classified by residual maturity:

in thousands of EUR

2019

2018

Payable on demand

215,846

334,904

1 to 3 months

471,092

300,239

3 months to 1 year

555,834

370,358

1 to 5 years

2,316,106

1,965,417

Longer than 5 years

4,662,349

4,316,208

Balance sheet value as at 31 December

8,221,227

7,287,126

EUR 24.9 million (2018: EUR 24.8 million) of the loans are subordinated.

EUR 271.0 million (2018: EUR 144.7 million) of the loans relates to loans to local authorities with a maximum original maturity of one year and one day.

The movement of the provision for doubtful debts is as follows:

 

2019

2018

 

Specific

Collective

Total

Specific

Collective

Total

Balance sheet value as at 1 January

33,742

5,414

39,156

43,678

5,918

49,596

Addition

10,016

401

10,417

7,561

1,013

8,574

Write-off

–9,137

–9,137

–13,561

–13,561

Release

–6,416

–380

–6,796

–3,908

–1,515

–5,423

Exchange rate differences

99

18

117

–28

–2

–30

Balance sheet value as at 31 December

28,304

5,453

33,757

33,742

5,414

39,156

The quality of the loan book remained satisfactory overall. This, and a continuing focus on maintaining and diversifying a high quality loan portfolio, kept impairments for the loan portfolio at a low level. In 2019 the impairments were 0.05% of the average loan book (2018: 0.05%).

The provision does not relate to contingent liabilities and irrevocable facilities. The collective provision relates to an Incurred But Not Reported (IBNR) provision in the amount of EUR 5.5 million (2018: EUR 5.4 million).

EUR 0.0 million of the addition to the provision relates to interest that has been invoiced but has not been received (2018: EUR 0.1 million).

A breakdown related to received collateral, relevant industries, sectors and per geographic region can be found in the Pillar 3 report 2019 which is published on the website of Triodos Bank.