Cash and cash equivalents

The balance sheet value of the cash and cash equivalents as at 31 December can be broken down as follows:

 

2021

2020

On demand deposit Dutch Central Bank

2,568,297

1,961,432

On demand deposit Belgian Central Bank

513,382

167,249

On demand deposit German Central Bank

244,245

183,657

On demand deposit Spanish Central Bank

506,584

224,358

On demand deposit United Kingdom Central Bank

445,464

419,467

Cash in ATM's

-

16

Interest receivable

-383

-392

Balance sheet value as at 31 December

4,277,589

2,955,787

Loans and advances to banks

 

2021

2020

On demand deposits with banks

145,276

126,618

Deposits with banks

120,588

37,996

Interest receivable

-44

15

Allowance for ECL

-24

-18

Balance sheet value as at 31 December

265,796

164,611

Received cash collateral regarding forward currency contracts and interest rate swaps was presented as other assets but are reclassified to loans and advances to banks. The comparative figure in the amount of EUR 14,048 is adjusted accordingly.

An amount of EUR 118.2 million of the deposits is encumbered (2020: EUR 41.8 million). These are on demand deposits at Cecabank for the amount of EUR 1.0 million (2020: EUR 1.0 million), ING Bank EUR 13.0 million (2020: EUR 13.0 million), Banco Cooperativo EUR 1.5 million (2020: EUR 7.5 million), the Dutch Central Bank EUR 50.0 million (2020: EUR 0.0 million), Rabobank EUR 13.5 million (2020: EUR 7.1 million), ABN AMRO EUR 39.2 million (2020: EUR 12.6 million) and Mastercard 0.0 million (2019: EUR 0.6 million. A deposit of EUR 1.0 million (2020: EUR 1.0 million) is subordinated. All other deposits can be freely disposed of.

The balance sheet value of the loans and advances to banks as at 31 December can be broken down as follows by residual maturity:

 

2021

2020

On demand

145,217

126,615

1 to 3 months

1,426

8,948

3 months to 1 year

-

15,000

1 to 5 years

119,153

14,048

Longer than 5 years

-

-

Balance sheet value as at 31 December

265,796

164,611

The balance sheet value of the loans and advances to banks as at 31 December can be broken down as follows:

 

2021

2020

ABN AMRO Bank

60,998

13,592

Banco Cooperativo

2,551

8,595

Cecabank

4,289

4,000

DZ Bank

15,764

24,304

Euroclear Bank

1,542

2,248

ING Bank

35,420

57,681

National Westminster Bank (Natwest)

44,164

21,897

Rabobank

39,115

22,994

BNP Paribas

3,340

22

Royal Bank of Scotland

3,705

455

Dutch Central Bank

50,000

-

Other

4,908

8,823

Balance sheet value as at 31 December

265,796

164,611

Loans and advances to customers

Loans and advances to customers at amortised cost:

 

2021

2020

 

Gross carrying amount

Allowance for ECL

Carrying amount

Gross carrying amount

Allowance for ECL

Carrying amount

Corporate loans

6,267,585

-45,366

6,222,219

5,987,800

-46,524

5,941,276

Mortgage lending

3,621,128

-1,078

3,620,050

2,739,930

-1,650

2,738,280

Municipality loans

138,628

-

138,628

332,713

-

332,713

Current accounts and credit cards

186,192

-2,536

183,656

122,593

-2,796

119,797

Fair value hedge accounting

-14,708

-

-14,708

5,286

-

5,286

Interest receivables

17,953

-

17,953

19,358

-

19,358

Balance sheet value as at 31 December

10,216,778

-48,980

10,167,798

9,207,680

-50,970

9,156,710

The Expected Credit Loss allowance (ECL) 2021 is 0.48% of the total loan portfolio gross carrying amount at 31 December 2021 (31 December 2020: 0.55%).

The annual incurred loss rate, which is the stage 3 impairment expense over the average loan book per 31 December 2021, is 0.06%(6 bps) (2020: 0.12% (12 bps)).

The movements of the ECL of Loans and Advances to customers is as follows:

 

2021

 

Stage 1

Stage 2

Stage 3

Total

Balance at 1 January

8,148

9,384

33,438

50,970

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-985

-5,899

5,613

-1,271

of which:

 

 

 

 

- Effect of transition between stages

851

-266

395

980

- Macro-economic forward looking impact

-3,916

-6,646

-

-10,562

- Update ECL model

778

-437

-

341

- Individual loan or advance behaviour

1,302

1,450

5,218

7,970

 

 

 

 

 

Net portfolio growth

1,432

-168

-

1,264

Other transfers

-

-

-

-

Write-offs

-

-

-2,306

-2,306

Exchange rate differences

80

101

142

323

Balance at 31 December

8,675

3,418

36,887

48,980

The total ECL provision of EUR 51.0 million per 31 December 2020 decreased by EUR 2.0 million to EUR 49.0 million per 31 December 2021 due to a decrease in the Stage 2 provision of EUR 6.0 million which is partially offset by an increase in Stage 3 of EUR 3.4 million. The decrease in Stage 2 is mainly caused by the decrease of EUR 6.6 million due to more favourable macro-economic forward looking parameters compared to 2020. This is partly offset by an increase of EUR 1.5 million due to changes in individual loan or advance behaviour which includes, amongst others, changes in credit ratings and exposure. This has resulted in a net gain in the profit and loss account of EUR 7 (2020: a net loss of EUR 22,358).

In 2020, because of the COVID-19 pandemic, the economic circumstances resulted in a large increase in the ECL provision, mainly in Stages 1 and 2. This increase in ECL provision was expected to move to the Stage 3 ECL provision in 2021 once defaults due to the economic downturn would materialise. The Stage 3 ECL provision has shown an increase of EUR 3.4 million in 2021.

More detailed information regarding the allowance for ECL and the impairment gain/loss recognised in the profit and loss accounts can be found in the Risk Management chapter, section Credit risk, with quantitative information starting on page Credit risk quantitative disclosures.

Loans and advances to customers classified by residual maturity:

 

2021

2020

Payable on demand

186,558

132,435

1 to 3 months

520,850

615,256

3 months to 1 year

896,227

832,317

1 to 5 years

3,600,046

3,202,127

Longer than 5 years

4,964,117

4,374,575

Balance sheet value as at 31 December

10,167,798

9,156,710

A total amount of EUR 9.4 million (2020: EUR 16.9 million) of the loans and advances to customers is subordinated. Within the loans to local municipalities a total of EUR 65.0 million (2020: EUR 252.7 million) have a maximum original maturity of one year and one day.

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. Please see Non-trading derivatives and hedge accounting for additional information.

Debt securities at amortised cost

 

2021

2020

Dutch government bonds

69,667

69,983

Belgian government bonds

108,035

141,697

Spanish government bonds

51,733

63,209

United Kingdom government bonds

125,171

63,120

Other bonds

1,119,399

968,775

Interest receivable

8,738

9,434

Fair value hedge accounting

645

1,146

Allowance for ECL

-10

-63

Balance sheet value as at 31 December

1,483,378

1,317,301

Part of the value of securities is used as collateral for a possible debit balance, amounting to EUR 207.1 million at the Dutch Central Bank (2020: EUR 177.5 million).

As part of the interest rate risk management Triodos Bank entered into interest rate swaps to hedge the interest risk on fixed interest rate bonds. Triodos Bank changed its risk management strategy by using portfolio fair value hedging. The remaining fair value hedge accounting movement will amortise over the remaining lifetime.

The movement in debt securities at amortised cost is as follows:

 

2021

2020

Balance sheet value as at 1 January

1,317,301

1,034,291

Purchases

402,532

527,238

Repayments

-229,447

-225,689

Sale

-6,095

-

Amortisation difference between acquisition price and redemption value

-10,725

-10,752

Exchange rate results on foreign currencies

10,956

-7,435

Interest receivable movement

-696

211

Fair value hedge accounting movement

-501

-534

Net movement in allowance for ECL

53

-29

Balance sheet value as at 31 December

1,483,378

1,317,301

The increase in the debt securities are in the other bonds. The other bonds consists of European regional government and corporate bonds, listed and non-listed. The debt securities including the other bonds are specified below.

The interest bearing securities in the statement below, as at 31 December, are valued at amortised cost. This is the book value without the interest receivable, fair value hedge accounting and the allowance for the ECL.

Issuer

2021

Public sector entities

Listed

Non-listed

Maturity <1 year

Maturity >1 year

Of which Green bond1

Belgium, government

108,035

-

81,427

26,608

-

Comunidad Autonoma de Madrid, Spain

116,960

-

35,597

81,363

14,368

Hessen, Germany

100,785

-

70,495

30,290

-

Region Wallonne, Belgium

51,054

20,000

20,000

51,054

-

The Netherlands, government

69,667

-

69,667

-

-

Kingdom of Spain, government

51,733

-

12,558

39,175

-

United Kingdom, government

125,171

-

22,589

102,582

-

European Investment Bank

68,618

-

-

68,618

-

Berlin, Germany

41,316

-

41,316

-

-

Autonomous Community of Basque Country, Spain

53,426

-

-

53,426

-

Instituto de Crédito Official (government guaranteed), Spain

16,171

-

-

16,171

-

Schleswig-Holstein, Germany

20,004

-

20,004

-

-

Xunta de Galicia, Spain

48,084

-

20,072

28,012

-

Niedersachsen, Germany

24,612

-

-

24,612

-

Junta de Castilla y Leon, Spain

23,700

-

1,021

22,679

-

Ayuntamiento de Madrid, Spain

15,509

-

15,509

-

-

Gemeinsame Deutsche Bundeslaender, Germany

21,475

-

21,475

-

-

Nordrhein-Westfalen, Germany

19,762

-

6,054

13,708

-

Region Ile de France

17,988

-

-

17,988

17,988

Rheinland-Pfalz, Germany

20,309

-

-

20,309

-

European Stability Mechanism, Luxembourg

20,279

-

-

20,279

-

Comunidad Autónoma de Andalucía, Spain

3,702

-

-

3,702

-

Nordic Investment Bank, Finland

17,386

-

-

17,386

-

Deutschsprachige Gemeinschaft Belgiens, Belgium

20,075

-

-

20,075

-

Brussels Region, Belgium

-

36,912

-

36,912

-

European Union, Belgium

5,114

-

-

5,114

-

Fonds régional bruxellois de refinancement des trésoreries communales, Belgium

-

10,008

10,008

-

-

Caisse d'Amortissement de la Dette Sociale, France

77,149

-

-

77,149

-

European Financial Stability Facility, Luxembourg

8,632

-

-

8,632

-

Total public sector entities

1,166,716

66,920

447,792

785,844

32,356

1

These are Green/sustainable bonds of which the proceeds are invested by the issuer in areas such as sustainable energy, energy efficiency and microfinance.

Issuer

2021

Non-public sector entities

Listed

Non-listed

Maturity <1 year

Maturity >1 year

Of which Green bond1

Adif Alta Velocidad, Spain

47,783

-

13,143

34,640

-

NRW Bank (government guaranteed), Germany

24,934

-

-

24,934

19,910

Kreditanstalt für Wiederaufbau (government guaranteed), Germany

46,103

-

-

46,103

-

Unibail-Rodamco-Westfield, France

15,828

-

-

15,828

-

Landwirtschaftliche Rentenbank, Germany

12,226

-

-

12,226

-

Nationwide Building Society, United Kingdom

11,890

-

11,890

-

-

Anglian Water Services Financing Plc, United Kingdom

11,156

-

-

11,156

11,156

ABN AMRO Bank N.V., The Netherlands

10,499

-

10,499

-

10,499

Nederlandse Waterschapsbank, The Netherlands

23,524

-

-

23,524

-

Cofinimmo SA N.V., Belgium

4,999

-

-

4,999

4,999

Ethias Vie, Belgium

500

-

-

500

-

Network Rail Infra Finance Plc, United Kingdom

22,927

-

-

22,927

-

Aquafin N.V., Belgium

-

8,000

2,000

6,000

8,000

Total non-public sector entities

232,369

8,000

37,532

202,837

54,564

1

These are Green/sustainable bonds of which the proceeds are invested by the issuer in areas such as sustainable energy, energy efficiency and microfinance.

Issuer

2020

Public sector entities

Listed

Non-listed

Maturity <1 year

Maturity >1 year

Of which Green bond1

Belgium, government

141,697

-

32,882

108,815

-

Comunidad Autonoma de Madrid, Spain

125,350

-

25,108

100,242

14,486

Hessen, Germany

86,319

-

-

86,319

-

Region Wallonne, Belgium

71,128

20,001

30,001

61,128

-

The Netherlands, government

69,983

-

-

69,983

-

Kingdom of Spain, government

63,209

-

10,038

53,171

-

United Kingdom, government

63,120

-

17,414

45,706

-

European Investment Bank

50,935

-

4,932

46,003

-

Berlin, Germany

41,607

-

-

41,607

-

Autonomous Community of Basque Country, Spain

41,495

-

-

41,495

-

Instituto de Crédito Official (government guaranteed), Spain

37,396

-

31,398

5,998

-

Schleswig-Holstein, Germany

30,080

-

10,004

20,076

-

Xunta de Galicia, Spain

28,027

-

-

28,027

-

Niedersachsen, Germany

24,711

-

-

24,711

-

Junta de Castilla y Leon, Spain

24,127

-

-

24,127

-

Ayuntamiento de Madrid, Spain

23,672

-

8,153

15,519

-

Gemeinsame Deutsche Bundeslaender, Germany

21,920

-

-

21,920

-

Nordrhein-Westfalen, Germany

20,019

-

-

20,019

-

Region Ile de France

17,986

-

-

17,986

17,986

Rheinland-Pfalz, Germany

15,116

-

-

15,116

-

Transport for London, United Kingdom

5,729

-

-

5,729

5,729

Comunidad Autónoma de Andalucía, Spain

3,729

-

-

3,729

-

Deutschsprachige Gemeinschaft Belgiens, Belgium

-

20,005

20,005

-

-

Brussels Region, Belgium

-

17,301

-

17,301

-

Fonds régional bruxellois de refinancement des trésoreries communales, Belgium

-

10,026

-

10,026

-

La Commanauté Francaise de Belgique, Belgium

-

10,000

-

10,000

-

Provincie Vlaams-Brabant, Belgium

-

6,000

6,000

-

-

Total public sector entities

1,007,355

83,333

195,935

894,753

38,201

1

These are Green/sustainable bonds of which the proceeds are invested by the issuer in areas such as sustainable energy, energy efficiency and microfinance.

Issuer

2020

Non-public sector entities

Listed

Non-listed

Maturity <1 year

Maturity >1 year

Of which Green bond1

Adif Alta Velocidad, Spain

48,125

-

-

48,125

-

Coöperative Rabobank U.A., The Netherlands

24,996

-

24,996

-

24,996

NRW Bank (government guaranteed), Germany

24,939

-

-

24,939

19,891

Kreditanstalt für Wiederaufbau (government guaranteed), Germany

21,820

-

-

21,820

-

Unibail-Rodamco-Westfield, France

15,941

-

-

15,941

-

Landwirtschaftliche Rentenbank, Germany

11,549

-

-

11,549

-

Nationwide Building Society, United Kingdom

11,171

-

-

11,171

-

Anglian Water Services Financing Plc, United Kingdom

10,522

-

-

10,522

10,522

ABN AMRO Bank N.V., The Netherlands

10,497

-

-

10,497

10,497

Bank Nederlandse Gemeenten (BNG), The Netherlands

6,037

-

6,037

-

-

Cofinimmo SA N.V., Belgium

4,999

-

-

4,999

4,999

Ethias Vie, Belgium

500

-

-

500

-

Société Régionale Wallonne du Transport (government guaranteed), Belgium

-

15,000

15,000

-

-

Aquafin N.V., Belgium

-

10,000

2,000

8,000

10,000

Total non-public sector entities

191,096

25,000

48,033

168,063

80,905

1

These are Green/sustainable bonds of which the proceeds are invested by the issuer in areas such as sustainable energy, energy efficiency and microfinance.

Investment securities

 

2021

2020

Participating interests designated at fair value through OCI

30,143

26,673

Participating debt at mandatory fair value through profit and loss

5,463

4,461

Shares in Triodos investment funds

4,285

-

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

85

80

Balance sheet value as at 31 December

39,976

31,214

As part of its mission, Triodos Bank wishes sustainable banking to create more and more impact over the world. In this respect, Triodos Bank provides equity funding to like minded financial institutions in order to increase growth of the sustainable banking sector. No significant influence can be exercised on our participating interests. These investments are of a strategic nature and are not held for trading. The instruments classified as equities, being the participating interests, are designated to be accounted for at fair value though OCI. The instruments classified as debt, being the participating debt, are mandatorily designated to be accounted for at fair value through profit and loss.

The value of these interests is based on the published share price. In absence of a public share price or if such a public share price is established in a non active stock exchange market (low trading activity) Triodos Bank estimates the fair value through the net asset value.

The other participating interests can be broken down as follows:

 

2021

2020

 

Participating interest

Amount in thousands of EUR

Participating interest

Amount in thousands of EUR

Participating interests at fair value through OCI

 

 

 

 

Amalgamated Bank, New York1

2.3%

10,703

2.3%

8,156

Merkur Bank KGaA, Copenhagen1

6.1%

3,203

6.2%

3,150

Cultura Bank Sparebank, Oslo1

1.2%

100

1.2%

95

GLS Gemeinschaftsbank eG, Bochum1

1.6%

10,050

1.8%

10,050

Banca Popolare Etica Scpa, Padova1

0.1%

133

0.2%

133

Ekobanken Medlemsbank, Järna1

0.6%

52

0.6%

52

Social Enterprise Finance Australia Limited, Sydney

4.5%

1

4.5%

1

Bpifrance Financement S.A., Maisons-Alfort.

0.0%

156

0.0%

140

Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden N.V. (FMO), The Hague1

2.0%

760

2.0%

702

Thrive Renewables Plc, Bristol

6.0%

3,465

5.8%

3,275

Transactie Monitoring Nederland B.V., Purmerend

3.0%

780

3.0%

210

La Société d’Investissement France Active (SIFA), Montreuil

0.1%

295

0.1%

300

Visa Inc, San Francisco1

0.0%

345

0.0%

309

La Bolsa Social, plataforma de financiación participativa, S.A., Madrid

4.7%

100

6.0%

100

Balance sheet value as at 31 December

 

30,143

 

26,673

 

 

 

 

 

Participating debt at fair value through profit and loss

 

 

 

 

Sustainability – Finance – Real Economies SICAV-SIF public limited liability company, Luxembourg

12.8%

5,112

12.8%

4,150

Visa Inc, San Francisco1

0.0%

351

0.0%

311

Balance sheet value as at 31 December

 

5,463

 

4,461

1

Credit institution

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

 

2021

2020

Balance sheet value as at 1 January

26,673

19,542

Acquisitions

-

210

Increase of capital

691

12,099

Revaluation

1,801

-4,138

Repayment of capital

-

-

Divestments

-

-

Conversion1

-

-292

Exchange rate results on foreign currencies

978

-748

Balance sheet value as at 31 December

30,143

26,673

1

In 2020, a portion of the shares held in Visa were converted and were 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:

 

2021

2020

Balance sheet value as at 1 January

4,461

4,737

Acquisitions

-

-

Increase of capital

16

-

Revaluation

654

-208

Repayment of capital

-

-

Divestments

-

-

Conversion1

-

292

Exchange rate results on foreign currencies

332

-360

Balance sheet value as at 31 December

5,463

4,461

1

In 2020, a portion of the shares held in Visa were converted and were therefore derecognised as participating interest at fair value through OCI and recognised as participating debt at fair value through profit and loss.

When a new fund is originated, Triodos Investment Management posts, if needed, seed capital to get the fund started. Depending on de fund and its needs, this may be an investment for less than one year or for a longer period. In 2021, the Triodos Emerging Markets Renewable Energy Fund was originated in which seed capital was posted. The investment classifies as an associate and is accounted for using the equity method.

The movement of Shares in Triodos investment funds is as follows:

 

2021

2020

Balance sheet value as at 1 January

-

-

Purchase

4,320

-

Revaluation

-35

-

Sales

-

-

Balance sheet value as at 31 December

4,285

-

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.

 

2021

2020

Balance sheet value as at 1 January

80

20

Purchase

-

60

Revaluation

5

-

Sales

-

-

Balance sheet value as at 31 December

85

80

Intangible assets

 

2021

2020

Development costs for information systems

46,104

43,274

Management contracts

957

1,159

Computer software

1,243

1,330

Balance sheet value as at 31 December

48,304

45,763

The development costs for information systems

The development costs for information systems contain costs for internally developed intangible assets related to the Bank’s ICT systems in The Netherlands, Spain and Germany.

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

 

2021

2020

Purchase value as at 1 January

69,830

70,628

Cumulative amortisation as at 1 January

-26,556

-32,416

Balance sheet value as at 1 January

43,274

38,212

Internal development

13,889

14,732

Acquisitions

-

-

Amortisation

-10,829

-9,577

Impairments

-318

-

Exchange rate results on foreign currencies

88

-93

Balance sheet value as at 31 December

46,104

43,274

 

 

 

Purchase value as at 31 December

81,816

69,830

Cumulative amortisation as at 31 December

-35,712

-26,556

Balance sheet value as at 31 December

46,104

43,274

Management contracts

The management contracts relate to contracts for the management of funds by Triodos Investment Management. When it acquired its participating interest in Triodos Investment Management in 2006, Triodos Bank paid EUR 4 million for this to Stichting Triodos Holding. No impairment was recognised based on the remaining usefulness of the contracts.

The movement in management contracts is as follows:

 

2021

2020

Purchase value as at 1 January

4,030

4,030

Cumulative amortisation as at 1 January

-2,871

-2,670

Balance sheet value as at 1 January

1,159

1,360

Amortisation

-202

-201

Balance sheet value as at 31 December

957

1,159

 

 

 

Purchase value as at 31 December

4,030

4,030

Cumulative amortisation as at 31 December

-3,073

-2,871

Balance sheet value as at 31 December

957

1,159

Computer software

Computer software relate to software that has been purchased. The movement in computer software is as follows:

 

2021

2020

Purchase value as at 1 January

3,903

4,573

Cumulative amortisation as at 1 January

-2,573

-2,602

Balance sheet value as at 1 January

1,330

1,971

Internal development

-

-

Acquisitions

583

245

Amortisation

-656

-882

Impairment

-15

-

Exchange rate results on foreign currencies

1

-4

Balance sheet value as at 31 December

1,243

1,330

 

 

 

Purchase value as at 31 December

4,088

3,903

Cumulative amortisation as at 31 December

-2,845

-2,573

Balance sheet value as at 31 December

1,243

1,330

Property and equipment

 

2021

2020

Property for own use

71,516

72,537

Equipment

23,148

28,953

Balance sheet value as at 31 December

94,664

101,490

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

 

2021

2020

Purchase value as at 1 January

79,196

95,495

Cumulative revaluation as at 1 January

-1,596

-1,596

Cumulative depreciation as at 1 January

-5,063

-7,749

Balance sheet as at 1 January

72,537

86,150

Purchases

212

152

Depreciation

-1,998

-2,322

Revaluation

-

-

Impairment

-

-4,971

Transfer to held for sale

-

-5,764

Exchange rate differences

765

-708

Balance sheet value as at 31 December

71,516

72,537

 

 

 

Purchase value as at 31 December

80,297

79,196

Cumulative revaluation as at 31 December

-1,596

-1,596

Cumulative depreciation as at 31 December

-7,185

-5,063

Balance sheet value as at 31 December

71,516

72,537

The Executive Board of Triodos Bank decided in December 2020 to sell the buildings located at the Nieuweroordweg 1 and Utrechtseweg 60 in Zeist and related to Triodos Head Office. The decision to sell the buildings was made in December 2020 as a consequence of the new way of working within Triodos Bank during 2020 resulting from the COVID-19 pandemic. This way of working entails a combination of working from home and working from the office. Triodos Bank believes that this is a more efficient way of working. Furthermore, it is in line with the Triodos Bank values of lowering the carbon footprint which will be continued after the COVID-19 pandemic.

This decision triggered an impairment in 2020 because the carrying value of the buildings will no longer be recovered through its continuing use, but through the sale of the property. An impairment loss of EUR 5.1 million for property and equipment related to Triodos Head Offices combined is recorded in 2020 in the profit and loss account. The impairment is recognised to adjust the carrying value to the fair value less cost of disposal.

At the end of 2021 an agreement to sell has been signed with a buyer. The book value represents the sales price less cost to sell and continues to be classified as held for sale, refer to note 12 Non-current Assets Held for Sale . The transaction is expected to be finalised in the first half year of 2022.

The movement in equipment is as follows:

 

2021

2020

Purchase value as at 1 January

56,736

60,460

Cumulative depreciation as at 1 January

-27,783

-25,914

Balance sheet value as at 1 January

28,953

34,546

Purchase

2,129

2,856

Sale

-113

-1,226

Depreciation

-6,551

-6,954

Impairment

-1,378

-83

Transfer to held for sale

-

-97

Exchange rate differences

108

-89

Balance sheet value as at 31 December

23,148

28,953

 

 

 

Purchase value as at 31 December

57,930

56,736

Cumulative depreciation as at 31 December

-34,782

-27,783

Balance sheet value as at 31 December

23,148

28,953

Fully depreciated equipment with a total purchase value of EUR 1.4 million (2020: EUR 4.1 million) has been disposed of.

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 renting out these assets and are therefore presented as investment property.

The movement in the investment property is as follows:

 

2021

2020

Acquisition value as at 1 January

12,788

12,630

Cumulative depreciation as at 1 January

-1,874

-1,618

Balance sheet as at 1 January

10,914

11,012

New foreclosed assets

-

158

Sales

-1,874

-

Depreciation

-239

-234

Impairments

-896

-22

Balance sheet value as at 31 December

7,905

10,914

 

 

 

Purchase value as at 31 December

10,463

12,788

Cumulative depreciation as at 31 December

-2,558

-1,874

Balance sheet value as at 31 December

7,905

10,914

Leases as lessor

Triodos Bank leases out its investment properties for the purpose of adding value to the repossessed assets. Triodos Bank has recognised the following items in the profit and loss account.

 

2021

2020

Rental income

183

181

Operating expenses

-499

-46

Total result on investment properties

-316

135

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

 

2021

2020

 

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Balance at 1 January

17,538

1,360

448

19,346

19,357

1,656

342

21,355

Depreciation

-2,537

-748

-67

-3,352

-2,541

-687

-68

-3,296

Additions

173

736

-

909

859

433

174

1,466

Exchange rate difference

93

-

-

93

-119

-

-

-119

Disposals

-172

-90

-

-262

-18

-42

-

-60

Balance at 31 December

15,095

1,258

381

16,734

17,538

1,360

448

19,346

Lease liabilities

 

2021

2020

 

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Current

2,381

891

72

3,344

1,912

463

72

2,447

Non-current

13,397

369

315

14,081

16,207

929

380

17,516

Balance sheet value at 31 December

15,778

1,260

387

17,425

18,119

1,392

452

19,963

 

2021

2020

Maturity analysis – contractual undiscounted cash flows

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Less than one year

2,772

630

72

3,474

2,418

397

72

2,887

One to five years

7,351

670

211

8,232

8,042

1,041

242

9,325

More than five years

9,843

-

134

9,977

12,082

-

144

12,226

Undiscounted lease liabilities at 31 December

19,966

1,300

417

21,683

22,542

1,438

458

24,438

Amounts recognised in profit or loss

 

2021

2020

Interest on lease liabilities

408

216

Expenses of short-term leases

46

61

Expenses of low-value assets

5

212

Sub-lease income

48

48

Amounts recognised in the statement of cash flows

 

2021

2020

Total cash outflow for leases

3,675

3,578

Real estate leases

Triodos Bank leases land and buildings for its office space. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. Some leases provide for additional rent payments that are based on changes in local price indices.

Other leases

Triodos Bank leases vehicles and equipment, with lease terms of generally three to five years. Triodos Bank also leases IT equipment with contract terms of generally one to three years. Leases with a contract term of less than one year and/or a value of less than EUR 5.000 are considered short-term and/or leases of low-value items.

Triodos Bank has elected not to recognise right-of-use assets and lease liabilities for these leases.

Non-trading derivatives

Additional hedge accounting disclosures are part of the financial risk management paragraph, please see note Non-trading derivatives and hedge accounting for additional information.

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 fair value of the interest rate swaps with a positive value at the end of the year is represented on the asset side of the balance sheet and the interest rate swaps with a negative value on the liability side.

Breakdown of derivatives by remaining term to maturity and fair value:

Non-trading derivative assets

 

Notional amount

Fair value

2021

Total

<= 1 year

> 1 year <= 5 years

> 5 years

 

Currency contracts:

 

 

 

 

 

OTC:

 

 

 

 

 

Forwards

5,277

-

5,277

-

554

Non deliverable forwards

4,453

2,969

1,484

-

1,113

Swap

-

-

-

-

-

 

 

 

 

 

 

Other OTC contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

868,500

-

7,500

861,000

17,983

Total derivatives

878,230

2,969

14,261

861,000

19,650

Average IRS rates:

 

 

-0.40%

0.16%

 

 

Notional amount

Fair value

2020

Total

<= 1 year

> 1 year <= 5 years

> 5 years

 

Currency contracts:

 

 

 

 

 

OTC:

 

 

 

 

 

Forwards

4,908

-

4,908

-

176

Non deliverable forwards

9,191

5,013

4,178

-

1,595

Swap

-

-

-

-

-

 

 

 

 

 

 

Other OTC contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

70,000

-

-

70,000

24

Total derivatives

84,099

5,013

9,086

70,000

1,795

Average IRS rates:

 

 

 

-0.02%

 

Triodos Bank applies macro fair value hedge accounting, in which the interest rate swaps (also named IRS) are the hedging instruments. Triodos Bank only enters into these contract for the purpose of hedging the interest rate risk, no derivatives are used for trading purposes. In 2021 Triodos Bank entered into additional interest rate swaps to further mitigate the interest rate risk. See page Market risk management for further information on interest rate risk for Triodos Bank.

Triodos Bank entered into currency contracts with Triodos Investment Management in order to manage the currency risk of the investment funds. Triodos Bank hedges these positions directly in the market. Therefore the long and short position are almost the same. In 2017 Triodos Bank stopped entering into new currency contract with Triodos Investment Management because of new regulation.

Non-trading derivative liabilities

 

Notional amount

Fair value

2021

Total

<= 1 year

> 1 year <= 5 years

> 5 years

 

Currency contracts:

 

 

 

 

 

OTC:

 

 

 

 

 

Forwards

226,720

221,443

5,277

-

3,113

Non deliverable forwards

4,453

2,969

1,484

-

1,077

Swap

-

-

-

-

-

 

 

 

 

 

 

Other OTC contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

233,900

124,000

102,700

7,200

2,757

Total derivatives

465,073

348,412

109,461

7,200

6,947

Average IRS rates:

 

0.12%

0.46%

0.47%

 

 

Notional amount

Fair value

2020

Total

<= 1 year

> 1 year <= 5 years

> 5 years

 

Currency contracts:

 

 

 

 

 

OTC:

 

 

 

 

 

Forwards

206,008

201,100

4,908

-

2,584

Non deliverable forwards

9,191

5,013

4,178

-

1,524

Swap

-

-

-

-

-

 

 

 

 

 

 

Other OTC contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

295,175

24,975

187,500

82,700

6,344

Total derivatives

510,374

231,088

196,586

82,700

10,452

Average IRS rates:

 

-0.12%

0.24%

0.18%

 

The forward currency contracts relates mainly to GPB contracts that Triodos Bank entered for a notional amount of EUR 221.4million (2020: EUR 201.1million) for hedging the currency risk of the UK subsidiary equity participation of Triodos Bank. The other currency contracts relates to contracts that Triodos Bank entered into with Triodos Investment Management in order to manage the currency risk of the investment funds. Triodos Bank hedges these positions directly in the market. Therefore the long and short position of these contracts are almost the same.

Other assets

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

 

2021

2020

Receivable regarding the deposit guarantee scheme

2,700

3,916

Other prepayments and accrued income

35,558

22,702

Other

17,226

21,953

Allowance for ECL

-1,119

-705

Balance sheet value as at 31 December

54,365

47,866

Received cash collateral regarding forward currency contracts and interest rate swaps was presented as other assets but are reclassified to loans and advances to banks. The comparative figure in the amount of EUR 14,048 is adjusted accordingly.

The main reason for the increase in other prepayments and accrued income is the received cash collateral for rents in Spain.

The other assets fall due within one year for an amount of EUR 46,201 (2020: EUR 40,368).

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:

 

2021

2020

Repossessed assets

6,544

10,343

Own property held for sale

6,135

5,860

Shares in investment funds held for sale

-

2,769

Balance sheet value as at 31 December

12,679

18,972

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.

Triodos Investment Management has provided seed capital to a new investment fund in November 2020 to improve the product offering and with the intention to exit within a year. The exit was realised, as intended, in November 2021.

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. The increase in bookvalue can be explained by the revaluation based on the sale agreement in 2021.

 

2021

2020

Cumulative impairments on assets held for sale

-762

-594

Total for the year

-762

-594