Loans and advances to banks

 

2020

2019

On demand deposits with banks

85,017

151,911

Deposits with banks

22,495

22,039

Interest receivable

-1

1

Allowance for ECL

-1

-12

 

 

 

Balance sheet value as at 31 December

107,510

173,939

An amount of EUR 22.1 million of the deposits is encumbered (2019: EUR 21.7 million). These are on demand deposits at Cecabank in the amount of EUR 1.0 million (2019: EUR 1.0 million), ING Bank EUR 13.0 million (2019: EUR 13.0 million), Banco Cooperativo EUR 7.5 million (2019: EUR 7.0 million) and Mastercard EUR 0.6 million (2019: EUR 0.7 million). A deposit of EUR 1.0 million (2019: EUR 1.0 million) is subordinated. All other deposits can be freely disposed of.

Loans and advances to customers

 

2020

2019

 

 

 

Loans

8,046,008

7,129,694

Provision for doubtful debts

-46,543

-31,791

 

 

 

Balance sheet value as at 31 December

7,999,465

7,097,903

 

2020

2019

 

Gross carrying amount

Allowance for ECL

Carrying amount

Gross carrying amount

Allowance for ECL

Carrying amount

 

 

 

 

 

 

 

Corporate loans

4,912,146

-42,137

4,870,009

4,814,132

-30,105

4,784,027

Mortgage lending

2,739,930

-1,650

2,738,280

1,977,175

-838

1,976,337

Municipality loans

252,700

-

252,700

271,000

-

271,000

Current accounts and credit cards

118,907

-2,756

116,151

47,611

-848

46,763

Municipality loans

5,286

-

5,286

2,424

-

2,424

Interest receivables

17,039

-

17,039

17,352

-

17,352

 

 

 

 

 

 

 

Balance sheet value as at 31 December

8,046,008

-46,543

7,999,465

7,129,694

-31,791

7,097,903

Loans classified by residual maturity:

 

2020

2019

 

 

 

Payable on demand

129,353

193,915

1 to 3 months

583,095

452,546

3 months to 1 year

739,036

500,356

1 to 5 years

2,754,583

2,013,585

Longer than 5 years

3,793,398

3,937,501

 

 

 

Balance sheet value as at 31 December

7,999,465

7,097,903

EUR 252.7 million (2019: EUR 271.0 million) of the loans relates to loans to local authorities with a maximum original maturity of one year and one day.

The loans and advances to customers includes an amount of EUR 37.9 million (2019: EUR 42.8 million) regarding loans provided to consolidated participating interests.

A breakdown related to received collateral, relevant industries, sectors and per geographic region can be found in the pillar 3 report 2020 which can be found on the website of Triodos Bank.

Debt securities at amortised cost

 

2020

2019

 

 

 

Dutch Government bonds

69,983

70,292

Belgian Government bonds

141,697

168,222

Spanish Government bonds

63,209

72,182

Other bonds

861,978

576,574

Interest receivable

8,494

8,072

Fair value hedge accounting

1,146

1,680

Allowance for ECL

-51

-26

 

 

 

Balance sheet value as at 31 December

1,146,456

896,996

The movement in interest-bearing securities is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

896,996

1,270,624

Purchase

458,031

112,417

Repayments

-199,002

-362,823

Sale

-

-

Transfer*

-

-111,822

Amortisation difference between acquisition price and redemption value

-9,432

-8,718

Exchange rate results on foreign currencies

-

-

Interest receivable movement

422

-3,337

Fair value hedge accounting movement

-534

650

Net movement in allowance for ECL

-25

5

 

 

 

Balance sheet value as at 31 December

1,146,456

896,996

*This relates to the transfer of the interest-bearing securities from the branch in the UK to the subsidiary Triodos Bank UK Ltd.

Investment securities

 

2020

2019

 

 

 

Participating interests in group companies

223,810

232,800

Shares S.W.I.F.T. SCRL

80

20

Participating interests designated at fair value through OCI

26,673

19,542

Participating debt at mandatory fair value through profit and loss

4,460

4,737

 

 

 

Balance sheet value as at 31 December

255,023

257,099

This relates to equity participations that are held long-term for business operation purposes. The statement of equity participations in accordance with Section 2:379 of The Netherlands Civil Code is included under the accounting principles for consolidation in the Notes to the consolidated Annual Accounts.

The movement of the participating intrests in group companies is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

232,800

22,645

Acquisitions

-

-

Incorporations *

-

200,036

Increase of capital

-

2,500

Result on participating interests

14,305

13,848

Transfer from or to provision for negative equity of participating interests

-

-

Dividend paid

-11,222

-5,082

Revaluation

-

-

Repayment of capital

-686

-4,393

Sale

-

-

Exchange rate result on foreign currency

-11,387

3,246

 

 

 

Balance sheet value as at 31 December

223,810

232,800

* The incorporation relate to the transfer of the assets and liabilities from the branch in the UK to the subsidiary Triodos Bank UK Ltd.

The shares in S.W.I.F.T. SCRL are held in the framework of the Bank's participation in S.W.I.F.T. payment transactions.

The movement in shares is as follows:

 

2020

2019

Balance sheet value as at 1 January

20

20

Purchase

60

-

Sales

-

-

 

 

 

Balance sheet value as at 31 December

80

20

The movement of the participating interest at fair value through OCI is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

19,542

19,018

Acquisitions

210

-

Increase of capital

12,099

349

Revaluation

-4,138

-279

Repayment of capital

-

-

Divestments

-

-

Conversion*

-292

-

Exchange rate results on foreign currencies

-748

454

 

 

 

Balance sheet value as at 31 December

26,673

19,542

* A portion of the shares held in Visa were converted and are therefore derecognised as participating interest at fair value through OCI and recognised as participating debt at fair value through profit and loss.

The movement of the participating debt at fair value through profit and loss is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

4,737

3,430

Acquisitions

-

-

Increase of capital

-

877

Revaluation

-209

352

Repayment of capital

-

-

Divestments

-

-

Conversion*

292

-

Exchange rate results on foreign currencies

-360

78

 

 

 

Balance sheet value as at 31 December

4,460

4,737

* A portion of the shares held in Visa were converted and are therefore derecognised as participating interest at fair value through OCI and recognised as participating debt at fair value through profit and loss.

Intangible fixed assets

 

2020

2019

Development costs for information systems

41,839

36,354

Computer software

1,282

1,840

 

 

 

Balance sheet value as at 31 December

43,121

38,194

Development costs for information systems

The development costs for information systems relate to the development costs for the banking system.

The movement in the development costs for the information systems item is as follows:

 

2020

2019

Purchase value as at 1 January

66,307

57,442

Cumulative amortisation as at 1 January

-29,953

-23,758

 

 

 

Balance sheet value as at 1 January

36,354

33,684

Capitalised expenses

14,737

12,894

Amortisation

-9,252

-7,465

Impairments

-

-890

Transfer*

-

-1,869

Exchange rate result on foreign currency

-

-

 

 

 

Balance sheet value as at 31 December

41,839

36,354

 

 

 

Purchase value as at 31 December

65,633

66,307

Cumulative amortisation as at 31 December

-23,794

-29,953

 

 

 

Balance sheet value as at 31 December

41,839

36,354

 

 

 

* This relates to the transfer of the bookvalue of the development costs for information systems from the branch in the UK to the subsidiary Triodos Bank UK Ltd.

Computer software

Computer software relates to software that has been purchased.

The movement in computer software is as follows:

 

2020

2019

 

 

 

Purchase value as at 1 January

3,825

4,612

Cumulative amortisation as at 1 January

-1,985

-2,004

 

 

 

Balance sheet value as at 1 January

1,840

2,608

Purchase

276

474

Amortisation

-834

-1,142

Impairments

-

-37

Transfer*

-

-63

 

 

 

Balance sheet value as at 31 December

1,282

1,840

 

 

 

Purchase value as at 31 December

3,191

3,825

Cumulative amortisation as at 31 December

-1,909

-1,985

 

 

 

Balance sheet value as at 31 December

1,282

1,840

* This relates to the transfer of the bookvalue of the development costs for information systems from the branch in the UK to the subsidiary Triodos Bank UK Ltd.

Property and equipment

 

2020

2019

Property for own use

60,558

73,114

Equipment

27,152

32,513

 

 

 

Balance sheet value as at 31 December

87,710

105,627

 

 

 

The movement in the property for own use is as follows:

 

2020

2019

Purchase value as at 1 January

80,930

29,800

Cumulative revaluation as at 1 January

-1,595

-1,595

Cumulative depreciation as at 1 January

-6,221

-2,385

 

 

 

Balance sheet value as at 1 January

73,114

25,820

Purchase

139

3,517

Depreciation

-1,960

-487

Revaluation

-

-

Impairment

-4,971

-

Transfer*

-5,764

44,264

Exchange rate differences

-

-

 

 

 

Balance sheet value as at 31 December

60,558

73,114

 

 

 

Purchase value as at 31 December

65,413

80,930

Cumulative revaluation as at 31 December

-1,595

-1,595

Cumulative depreciation as at 31 December

-3,260

-6,221

 

 

 

Balance sheet value as at 31 December

60,558

73,114

The transfer in 2020 relates to by the decision of the Executive Board of Triodos Bank to sell the buildings located at the Nieuweroordweg 1 and Utrechtseweg 60 in Zeist. These buildings are expected to be sold during 2021, such that these buildings will be reclassified to assets held for sale. Refer to note 7 Property and equipment and 12 Non-current Assets Held for Sale of the consolidated financial statements for futher details. In 2019 properties for own use were transferred in from the liquidated subsidiaries Kantoor Buitenzorg B.V., Kantoor Nieuweroord B.V. and Triodos Nieuwbouw B.V. in the amount of EUR 60,848 and the transfer out of the Property for own use from the branch in the UK to the subsidiary Triodos Bank UK Ltd in the amount of EUR 13,084.

The movement in equipment is as follows:

 

2020

2019

Purchase value as at 1 January

55,353

34,490

Cumulative depreciation as at 1 January

-22,840

-22,350

 

 

 

Balance sheet value as at 1 January

32,513

12,140

Purchase*

2,344

21,432

Sale**

-887

-4

Depreciation**

-6,638

-4,252

Impairment

-83

-60

Transfer***

-97

3,257

Exchange rate differences

-

-

 

 

 

Balance sheet value as at 31 December

27,152

32,513

 

 

 

Purchase value as at 31 December

52,263

55,353

Cumulative depreciation as at 31 December

-25,111

-22,840

 

 

 

Balance sheet value as at 31 December

27,152

32,513

* The purchase mainly relates to the investment in the installation and inventory of the new office building in The Netherlands.
** Excluding disposal in the amount of EUR 3.5 million (2019: EUR 2.6 million).
*** This relates to the transfer in 2019 of the equipment from the liquidated subsidiaries Kantoor Buitenzorg B.V., Kantoor Nieuweroord B.V. and Triodos Nieuwbouw B.V. in the amount of EUR 4,911 and the transfer out of the equipment from the branch in the UK to the subsidiary Triodos Bank UK Ltd in the amount of EUR 1,654.

Investment property

Triodos Bank sometimes repossesses assets which come from acquisition in public auctions. These assets are collaterals of an executed loan. A part of the repossessed assets however will not be sold immediately because Triodos Bank has opted to add value by letting these assets and are therefore presented as investment property.

The movement in the investment property is as follows:

 

2020

2019

Purchase value as at 1 January

12,630

12,589

Cumulative depreciation as at 1 January

-1,618

-1,265

 

 

 

Balance sheet as at 1 January

11,012

11,324

New foreclosed assets

158

41

Depreciation

-234

-239

Impairments

-22

-114

 

 

 

Balance sheet value as at 31 December

10,914

11,012

 

 

 

Purchase value as at 31 December

12,788

12,630

Cumulative depreciation as at 31 December

-1,874

-1,618

 

 

 

Balance sheet value as at 31 December

10,914

11,012

Leases

Triodos Bank leases many assets including land and buildings, vehicles, and IT equipment. Information about leases for which Triodos Bank is a lessee is presented below.

Right-of-use assets

 

2020

2019

 

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

 

 

 

 

 

 

 

 

 

Balance at 1 January

18,220

1,413

343

19,976

17,955

1,358

15

19,328

Depreciation

-2,473

-601

-68

-3,142

-3,358

-616

-8

-3,982

Additions

333

367

174

874

3,623

671

336

4,630

Disposals

-18

-42

-

-60

-

-

-

-

 

 

 

 

 

 

 

 

 

Balance at 31 December

16,062

1,137

449

17,648

18,220

1,413

343

19,976

Lease liabilities

 

2020

2019

Maturity analysis – contractual undiscounted cash flows

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

 

 

 

 

 

 

 

 

 

Less than one year

2,418

397

72

2,887

2,248

352

62

2,662

One to five years

8,042

1,041

242

9,325

7,839

1,019

245

9,103

More than five years

12,082

-

144

12,226

12,553

-

54

12,607

 

 

 

 

 

 

 

 

 

Total undiscounted lease liabilities at 31 December

22,542

1,438

458

24,438

22,640

1,371

361

24,372

 

 

 

 

 

 

 

 

 

Current

1,767

376

72

2,215

1,813

394

59

2,266

Non-current

14,865

792

380

16,037

17,092

1,038

284

18,414

 

 

 

 

 

 

 

 

 

Lease liabilities included in the statement of financial position at 31 December

16,632

1,168

452

18,252

18,905

1,432

343

20,680

Other assets

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

 

2020

2019

 

 

 

Receivable regarding the deposit guarantee scheme

3,916

3,916

Other prepayments and accrued income

9,789

32,897

Other

47,987

60,648

 

 

 

Balance sheet value as at 31 December

61,692

97,461

Of the other assets, EUR 40,172 thousand has a maturity of less than one year (2019: EUR 79,862 thousand). Due to the nature and the maturity of the other assets, the fair value approximates the carrying value.

The other assets includes an amount of EUR 68 thousand (2019: EUR 3.0 million) regarding receivables from consolidated participating interests.

Non-current Assets Held for Sale

The balance sheet value of the assets held-for-sale as at 31 December can be broken down as follows:

 

2020

2019

 

 

 

Reposessed assets

10,343

10,197

Own property held for sale

5,860

-

 

 

 

Balance sheet value as at 31 December

16,203

10,197

Triodos Bank can acquire the collateral under non performing loans, all assets acquired are real estate. It is the intention of Triodos Bank to dispose of these assets as they are not part of the primary business of the Bank. If permitted by the underlying contracts of the acquired assets, these assets are presented as real estate for sale, using a realtor.

The disclosure regarding the addition to the assets held for sale as required by IFRS 5 is included in note 7, Property and equipment, on page Property and equipment of the financial statements.

Deposits from banks

 

2020

2019

 

 

 

Deposits from banks

66,965

70,023

TLTROIII

750,000

-

Interest payable

-1,825

572

 

 

 

Balance sheet value as at 31 December

815,140

70,595

Deposits from customers

 

2020

2019

 

 

 

Savings accounts

6,525,824

5,432,087

Other funds entrusted

3,655,845

3,910,241

Interest payable

1,502

2,670

 

 

 

Balance sheet value as at 31 December

10,183,171

9,344,998

The Other funds entrusted item includes an amount of EUR 13.4 million (2019: EUR 22.2 million) for deposits from consolidated participating interests.

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

Funds entrusted classified by residual maturity:

 

2020

2019

 

Savings

Other funds entrusted

Total

Savings

Other funds entrusted

Total

 

 

 

 

 

 

 

Payable on demand

6,084,890

3,569,661

9,654,551

4,872,636

3,840,835

8,713,471

1 to 3 months

78,469

14,639

93,108

102,609

16,553

119,162

3 months to 1 year

193,035

26,265

219,300

228,854

26,197

255,051

1 to 5 years

141,003

40,572

181,575

197,223

25,287

222,510

Longer than 5 years

29,457

5,180

34,637

32,318

2,486

34,804

 

 

 

 

 

 

 

 

6,526,854

3,656,317

10,183,171

5,433,640

3,911,358

9,344,998

Other liabilities

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

 

2020

2019

 

 

 

Other liabilities

17,014

20,866

Other accruals and deferred income

32,045

25,616

 

 

 

Balance sheet value as at 31 December

49,059

46,482

Of the other liabilities, EUR 47,700 thousand has a maturity of less than one year (2019: EUR 45,802 thousand). Due to the nature and the maturity of the other liabilities, the fair value approximates the carrying value.

The other liabilities includes an amount of EUR 2.4 million (2019: EUR 8.5 million) regarding payables to consolidated participating interests.

Provisions

 

2020

2019

 

 

 

Financial guarantee contracts issued

13

18

Loan commitments issued

1,724

529

Other provisions

1,501

515

 

 

 

 

3,238

1,062

The movement of the provisions is as follows:

 

2020

2019

 

 

 

Balance sheet value as at 1 January

515

4,847

Addition

998

915

Withdrawal

-12

-1,944

Release

-

-2,682

Transfer*

-

-698

Exchange rate differences

-

77

 

 

 

Balance sheet value as at 31 December

1,501

515

Capital

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.

The movement in 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.

Other reserve

 

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 from retained earnings

4,892

4,199

 

 

 

Balance sheet value as at 31 December

43,806

38,914

Retained earnings

The movement in retained earnings includes purchasing of own depository receipts. At year-end 2020, Triodos Bank had purchased 237,976 own depository receipts (2019: 1,321).

Contingent liabilities

During 2020, Triodos Bank has provided a guarantee with a maximum of EUR 20 million to Triodos Investment Management relating to a transaction that was made on behalf of an investment fund managed by Triodos Investment Management. Triodos Bank receives a fee of 0.1% per annum over the maximum guarantee.