Interest income calculated using the effective interest method

 

2020

2019

 

 

 

Loans

162,060

171,383

Banks

1,856

406

Interest-bearing securities

10,192

11,804

Other investments

91

85

Negative interest expense other

3,964

1,612

 

 

 

Total interest income calculated using the effective interest method

178,163

185,290

The interest income includes revenues derived from loans and related transactions, as well as related commissions, which by their nature are similar to interest payments. The interest-bearing securities item does not include transaction results (2019: nil).

The interest income includes revenues derived from loans provided to consolidated participating interest in the amount of EUR 175 thousand (2019: EUR 160 thousand).

Interest expense

 

2020

2019

 

 

 

Funds entrusted

4,408

10,620

Banks

657

534

Negative interest income banks

7,599

7,770

Other

2,674

2,571

Negative interest income other

973

485

 

 

 

 

16,311

21,980

Investment income

 

2020

2019

 

 

 

Dividend from other participations

449

679

Realized result from other participations

-

-

 

 

 

 

449

679

Fee and commission income

 

2020

2019

 

 

 

Guarantee commission

598

710

Transaction fee securities

2,210

2,011

Payment transactions

31,761

26,265

Lending

11,475

13,077

Asset Management

6,723

6,894

Management fees

3,949

2,885

Other commission income

4,433

4,214

 

 

 

 

61,149

56,056

Fee and commission expense

 

2020

2019

 

 

 

Commission to agents

123

146

Asset Management

613

721

Other commission expense

3,310

3,667

 

 

 

 

4,046

4,534

Net income from other financial instruments at FVTPL

 

2020

2019

 

 

 

Net result on investment debt mandatorily at fair value through profit and loss:

-361

430

 

 

 

 

-361

430

Other income

 

2020

2019

Exchange results for foreign currency transactions

115

-107

Transaction results on currency forward contracts

56

108

Realized results assets not in use *

-

239

Income assets not in use *

181

246

Hedge accounting ineffectiveness

111

-15

Other income

290

132

 

 

 

 

753

603

* Assets not in use relates to acquired collateral on written off loans.

The other income relates to fees for other services performed and results from asset disposals.

Personnel and other administrative expenses

 

2020

2019

 

 

 

Co-worker costs:

 

 

  • salary expenses

65,462

63,068

  • pension expenses*

8,558

8,166

  • social security expenses

12,162

12,888

  • temporary co-workers

16,495

17,410

  • other staff costs

5,723

7,885

  • capitalised co-worker costs

-7,981

-5,828

 

 

 

 

100,419

103,589

 

 

 

Other administrative expenses:

 

 

  • office costs

3,503

4,220

  • IT costs

14,751

14,323

  • external administration costs

10,358

9,482

  • travel and lodging expenses

901

2,014

  • fees for advice and auditor*

7,206

8,087

  • advertising charges

4,700

5,817

  • accommodation expenses

4,466

5,027

  • other expenses

6,871

6,190

 

 

 

 

52,756

55,159

 

 

 

 

153,175

158,748

 

 

 

Average number FTE's during the year**

1,035.6

1,068.2

* The details of the pension scheme and of the auditor fees are included in note 27 Personnel and other administrative expenses of the financial statements.
** Of which 474.8 FTE (2019: 557.9 FTE) works outside of the Netherlands.

Depreciation, amortisation and value adjustments of property and equipment, and intangible assets

 

2020

2019

 

 

 

Amortisation of intangible fixed assets

10,072

8,606

Impairment of intangible fixed assets

-

928

 

 

 

Amortisation & impairment charge for the year

10,072

9,534

 

 

 

Depreciation of property and equipment

11,920

9,001

Impairment of tangible fixed assets

5,244

174

 

 

 

Amortisation & impairment charge for the year

17,164

9,175

Depreciation has been reduced by the part that is charged on to related parties.

Impairment losses on financial instruments

This item consists of expenses associated with write-downs on loans and other receivables.

 

2020

2019

 

 

 

Allowance for expected credit loss

20,582

3,314

Modification result

7

34

Correction on addition to provision doubtful debts regarding interest that has been invoiced but not received

-

-7

Impairments other receivables

286

303

 

 

 

Total expense

20,875

3,644

Taxation on operating result

 

2020

2019

 

 

 

Taxation to be paid

7,940

8,166

Deferred taxation

-2,328

2,120

 

 

 

 

5,612

10,286

Prior year taxation on operating results have been adjusted for an amount of EUR 1,409. For further explanation see the general accounting principles.

Reconciliation of effective tax rate

 

2020

2019

 

 

 

Result before taxation

18,510

35,443

Statutory tax rate

25.0%

25.0%

 

 

 

Statutory tax amount

4,628

8,861

 

 

 

Income Non Taxable

17

-283

Tax Deduction Not Expensed

-

-44

Expenses Non Deductible

1,095

1,089

Impact tax rate differences - stat rate foreign jurisdictions

-293

726

Restatement of deferred taxation items as the result of amended tax rates

815

329

Incentives for gifts, community investment and innovation

-330

-214

Other reconciling items

-320

-178

 

 

 

Effective tax amount

5,612

10,286

 

 

 

Effective tax rate

30.3%

29.0%

Subsequent events

The end of 2020 was marked by an increasing number of Covid-19 infections across Europe leading to additional measures taking in the affected countries. The economic consequences for vulnerable individuals and firms resulted into additional governmental support. Triodos Bank monitors the potential and social implications for the countries and sectors where it is active. Mitigating actions have been taken and will be adapted as necessary as we keep on supporting our customers. The uncertainties and sensitivity that accompanies the pandemic is captured in the allowance for expected credit losses as calculated by Triodos Bank. The reflection of this ongoing event has therefore been captured in the financial valuations as per 31 December.

Triodos Bank has temporarily stopped offering depository receipts as from 5 January 2021. A trade pattern has emerged where the number of sell orders outweighs the number of buy orders for Depository Receipts. This trend emerges despite the financial health of the bank, as our capital and liquidity ratios remain well above regulatory minimum levels. The ongoing uncertainty around the Corona crisis and its longer-term economic effects have not disappeared, on the contrary, further lockdown and other restrictions are seen globally. Relevant measures are investigated to achieve balanced trading. The details of possible new measures are considered relevant information for making an informed investment decision.

Peter Blom, our CEO, has decided to step down from his role, having worked at Triodos Bank for forty years. He will leave Triodos Bank at the end of this year’s Annual General Meeting, on 21 May 2021.

Jellie Banga decided to step down from her role as Vice-Chair of the Executive Board and the Chief Operating Officer effective May 1, 2021. In reviewing the scope of Jellie’s role, Triodos Bank has decided to split her role into a COO role – focusing on the operating side of the bank – and a Chief Commercial Officer (CCO) role - focusing on the commercial side of the bank. This will bring the total number of Executive Board members to five.

Fitch Ratings (Fitch) announced on 16 February 2021 it has assigned Triodos Bank a Long-Term Issuer Default rating at ‘BBB’ with a stable outlook and a Viability Rating at ‘bbb’. Fitch’s rating analysis was done at the request of Triodos Bank. The rating gives Triodos Bank a better position on the financial markets should the need arise. It will improve access to institutional debt funding and potentially reduce the cost of funding. Therefore, it supports the banks financial health. The Stable Outlook reflects Fitch’s view that Triodos Bank’s ratings have sufficient headroom at their current level to absorb significant shocks under various scenarios to Fitch’s baseline economic forecast.

Zeist, 17 March 2021

Supervisory Board,

Executive board,

 

 

Aart de Geus, Chair

Peter Blom, Chair

Fieke van der Lecq, Vice-Chair

Jellie Banga, Vice-Chair

Ernst Jan Boers

André Haag

Sébastien D’Hondt

Carla van de Weerdt

Mike Nawas

 

Dineke Oldenhof