Deposits from banks

 

2020

2019

 

 

 

Deposits from banks

66,965

70,023

Deposits from Central Banks (TLTROIII.5)

750,000

-

Interest payable

-1,825

697

 

 

 

Balance sheet value as at 31 December

815,140

70,720

The deposits from banks concerns credits held by Kreditanstalt für Wiederaufbau, Germany and Landwirtschaftliche Rentenbanken, Germany for interest-subsidised loans in the renewable energy sector.

Triodos Bank entered into TLTROIII (hereafter ‘TLTRO’) funding with the ECB, with early repayment option after 1 year, on 30 September 2021. The interest rate on the TLTRO depends on the lending volumes granted to corporates (excluding financial institutions) and households (excluding mortgages).

Under the conditions of the program, if a bank shows growth in its lending volumes equal to or above 0% between 1 March 2020 and 31 March 2021, the interest rate applied on all TLTRO operations outstanding over the period between 24 June 2020 and 23 June 2021 will be 50 basis points below the average interest rate on the deposit facility prevailing over the same period, and in any case not higher than -1%. In subsequent years the interest will be between the Deposit Facility and Main Refinancing Operations interest rates, depending to what lending growth conditions Triodos Bank meets within the TLTRO program. The amount of interest to be recognised on the TLTRO depends on a reasonable expectation of whether the conditions will be met over the life of the loan. Triodos Bank expects that the conditions will be met. Interest on TLTRO is presented as part of net interest margin.

Deposits from banks classified by residual maturity:

 

2020

2019

 

 

 

Payable on demand

87

697

1 to 3 months

-

1,425

3 months to 1 year

753,067

5,267

1 to 5 years

13,378

27,484

Longer than 5 years

48,608

35,847

 

 

 

Balance sheet value as at 31 December

815,140

70,720

Deposits from customers

 

2020

2019

 

 

 

Savings

7,762,988

6,365,076

Other funds entrusted

3,979,681

4,324,929

Interest payable

4,538

3,694

 

 

 

Balance sheet value as at 31 December

11,747,207

10,693,699

Savings are defined as:

  • savings accounts (with or without notice) of natural persons and non-profit institutions

  • fixed term deposits of natural persons and non-profit institutions

Other funds entrusted are defined as:

  • current accounts of natural persons and non-profit institutions

  • all accounts of governments, financial institutions (excluding banks) and non-financial corporations

Deposits from customers classified by residual maturity:

 

2020

2019

 

Savings

Other funds entrusted

Total

Savings

Other funds entrusted

Total

 

 

 

 

 

 

 

Payable on demand

7,032,403

3,703,255

10,735,658

5,233,233

4,123,538

9,356,771

1 to 3 months

300,844

193,933

494,777

592,673

137,552

730,225

3 months to 1 year

241,029

37,005

278,034

270,145

36,029

306,174

1 to 5 years

162,358

41,743

204,101

238,907

26,818

265,725

Longer than 5 years

29,457

5,180

34,637

32,318

2,486

34,804

 

 

 

 

 

 

 

 

7,766,091

3,981,116

11,747,207

6,367,276

4,326,423

10,693,699

Other liabilities

The balance sheet value of the other liabilities as at 31 December can be broken down as follows:

 

2020

2019

 

 

 

Other liabilities

17,830

20,226

Other accruals and deferred income

37,964

29,518

 

 

 

Balance sheet value as at 31 December

55,794

49,744

Interest payable regarding cash and cash equivalents was recognised as other accruals and deferred income but are transferred to cash and cash equivalents. The comparative figure in the amount of EUR 241 are adjusted accordingly.

Debt issued and other borrowed funds

This relates to a 10-year GBP bond issued in 2020 by Triodos Bank UK Ltd. The bond was issued at nominal value. The nominal interest rate is 4% for the first five years after which there is an option to early redeem the bond. If the bond is not early redeemed, the interest rate is reset to maturity at 3.9% above the Bank of England base rate. The bonds are subordinated to all other liabilities.

The movement of the debt issued is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

-

-

Issuance

6,359

-

Interest payable

9

-

Exchange rate difference

-

-

 

 

 

Balance sheet value as at 31 December

6,368

-

Provisions

 

2020

2019

 

 

 

ECL on financial guarantee contracts issued

14

19

ECL on loan commitments issued

2,233

676

Other provisions

2,137

4,782

 

 

 

Balance sheet value as at 31 December

4,384

5,477

A provision in the amount of EUR 0.6 million has been created regarding the conversion of regulated savings accounts. A provision regarding the internal reorganization was made of which EUR 0.4 million (2019: EUR 3.5 million) is still unutilised. Further provisions have been formed regarding disputes and claims.

An amount of EUR 4.1 million (2019: EUR 3.5 million) can be classified as shorter than one year.

The movement of the other provisions is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

4,782

5,259

Addition

1,179

5,024

Withdrawal

-1,952

-2,471

Release

-1,850

-3,113

Exchange rate differences

-22

83

 

 

 

Balance sheet value as at 31 December

2,137

4,782

Equity

Share capital

The equity stated on the consolidated balance sheet is equal to that stated on the parent company balance sheet. The authorised capital totals to an amount of EUR 1.5 billion and is divided into 30 million ordinary shares, each with a nominal value of EUR 50. At year-end, there were 14,467,056 ordinary shares (2019: 14,401,765 shares), each of EUR 50, issued to and fully paid up by Stichting Administratiekantoor Aandelen Triodos Bank. As at the same date, Stichting Administratiekantoor Aandelen Triodos Bank had also issued 14,467,056 depository receipts (2019: 14,401,765 depository receipts), each with a nominal value of EUR 50.

The purchasing and reissuing of depository receipts for own shares is charged or credited respectively to the Other reserves. Any balance remaining after the re-issuing of all own depository receipts purchased shall be placed at the disposal of the Annual General Meeting. More details on capital ratios are included in the Pillar 3 report which can be found on the internet site of Triodos Bank.

The movement of the number of shares is as follows:

 

2020

2019

 

 

 

Number of shares as at 1 January

14,401,765

13,494,697

Increase of share capital

65,291

642,944

Stock dividend

-

264,124

 

 

 

Number of shares as at 31 December

14,467,056

14,401,765

Share premium reserve

This item includes the share premium reserve, which is composed of deposits that exceed the nominal capital, after deduction of capital transfer tax. The full balance of the share premium reserve has been recognised as such for tax purposes.

Translation reserve

The translation reserve includes the currency translation result of foreign operations and the effective portion of the net investment hedge on foreign operations.

Cost of hedging reserve

The cost of hedging reserve relates to the forward component of the net investment hedges which are recognised as cost of hedging.

Fair value reserve

The revaluation reserve relates to the unrealised value adjustments in respect of the acquisition price for participating interests.

 

2020

2019

 

 

 

Development costs

43,806

38,914

 

 

 

Balance sheet value as at 31 December

43,806

38,914

Development costs

The movement in the other reserve for development costs is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

38,914

34,715

Transfer of other reserve

4,892

4,199

 

 

 

Balance sheet value as at 31 December

43,806

38,914

Retained earnings

The movement in other reserves includes purchasing of own depository receipts. At year-end 2020, Triodos Bank had purchased 237,975 own depository receipts amounting to EUR 20,656 (2019: 1,321 own depository receipts amounting to EUR 126).

Profit appropriation

As set out in the Articles of Association, the appropriation of profit is as follows:

Part of the profit as reported in the adopted profit and loss account shall be used by the Executive Board to form or add to the reserves to the extent that this is deemed desirable. The remaining profit shall be distributed to the shareholders, unless the General Meeting decides otherwise.

The proposed appropriation of profit is based on the number of depository receipts issued as at 31 December 2020, minus the number of depository receipts purchased by Triodos Bank. The final proposal will be submitted at the Annual General Meeting.

The proposed appropriation of profit (in thousands of EUR) is as follows:

Net profit

27,203

Addition to the retained earnings

-17,954

 

 

Dividend (EUR 0.65 per depository receipt)

9,249

Dividend proposal of 18 March 2020 as published in the annual accounts 2019 was revised. This was a direct response to the recommendation made by the European Central Bank and De Nederlandsche Bank (DNB) on 27 March to all banks, not to pay out dividend in order to prioritise supporting the real economy by lending to customers during the COVID-19 pandemic. For the year result of 2020 Triodos Bank proposes a dividend of EUR 0.65 per share, equivalent to a 15% pay-out ratio (the percentage of total profit distributed as dividends) of 2019 and 2020 together in compliance with the latest guidelines of DNB following the instruction of the ECB.