Our key objectives for 2021

How we did

Progress at a glance

1. Business model enhancement: safeguarding our long-term sustainable business model.

Strong focus on profitable lending growth and stringent monitoring of the lending portfolio

Our lending growth was determined by balancing the maximisation of our mission with the need to meet the minimum profitability hurdle. Through stringent monitoring, our lending portfolio remained within the lines of expectations.

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Enlarge our assets under management and related fee income by growing T-IM in a profitable way and rolling out the bank investment distribution strategy

Although the effects of the COVID-19 pandemic continued to impact valuations of assets in 2021, assets under management (AuM) and inflow growth remained on track. Our distribution strategy was realised according to plan, with investment funds successfully introduced in Triodos Bank Spain and managed accounts to be launched with Triodos Bank the Netherlands in early 2022.

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Pursue balanced growth in mortgages, carefully considering impact, risk, and return

Similar to our business lending portfolio, our mortgages portfolio developed according to our objectives. In addition to this, we developed our sustainable mortgage proposition for Triodos Bank the Netherlands, with a 0% rate for sustainability home improvements (valid for 2021).

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Take measures to ensure balance between rates and fees

As in the previous year, we have acted across all banking entities to bring rates and fees more in line with economic reality with the objective of maintaining healthy balance sheet relations.

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2. Operational optimisation: improving operational processes and the cultural foundations for optimisation.

Invest in functionality to digitalise the banking operating model, protect our licence to operate, improve customer experience and reduce costs

Our domains remained largely on track to fulfil their KPI target. Although execution of some of our mobile initiatives has taken longer than anticipated, substantial financial value was delivered by our non-digitalisation initiatives. Notably during lockdown, our ability to continue to improve on-boarding and bring lending fully online, ensured continuation of the services we provide to customers.

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Obtain effectiveness and contained costs from efficiency measures and centralisation

We created structural optimisation models to improve our cost-effectiveness and prepared their execution.

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3. Risk management optimisation: safeguarding our licence to operate and managing inherent banking business risks to stay within our modest risk appetite.

Further step-up our customer integrity monitoring systems and processes

We executed our KYC and Financial Crime maturity improvement three-year programme according to plan. Group standards, relating to policy, data, portfolio risk/CDD/CAM strategic reporting, have been developed and deployed across the organisation to ensure strengthening our robustness and compliance with KYC/CDD requirements.

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4. Financial management optimisation: managing our balance sheet and profitability effectively and efficiently.

Refine the Group’s capital strategy based on recent economic developments with DRs at its core

We successfully launched the ‘Green Subordinated Tier 2 Bond’ in October 2021. Further, we have communicated our decision to work towards listing our Depository Receipts (DRs) via a Multilateral Trading Facility (MTF). We are setting up a restricted buyback programme will be initiated to bridge the trade suspension period for DR holders. We expect to receive further guidance regarding MREL from the National Resolution Authorities (NRA) in 2022.

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