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 | ||||
|
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 | ||||
|
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 | ||||
|
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 | ||||
|
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 | |||||
|
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 | |||||||
|
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 | |||||||
|
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.
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 |