Equity and liabilities

The deposits from banks concerns credits held by Kreditanstalt für Wiederaufbau, Germany and Landwirtschaftliche Rentenbanken, Germany for interest-subsidised loans in the renewable energy sector.

Triodos Bank entered into TLTROIII (hereafter ‘TLTRO’) funding with the ECB, with an early repayment option on 23 June 2022. The interest rate on the TLTRO depends on the lending volumes granted to corporates (excluding financial institutions) and households (excluding mortgages).

The interest rate applied on all TLTRO operations outstanding will be 50 basis points below the average interest rate on the deposit facility prevailing over the same period, and in any case not higher than -1%, if lending conditions under the program are met. The lending condition is met if Triodos Bank shows growth in its lending volumes equal to or above 0% in two periods. The period is between 1 March 2020 and 31 March 2021 and the second period between 1 October 2020 and 31 December 2021. Triodos Bank met the conditions in both periods. The interest rate for the first period is applied between 24 June 2020 and 23 June 2021 and for the second period between 24 June 2021 and 23 June 2022. In subsequent years the interest will be between the Deposit Facility and Main Refinancing Operations interest rates, depending to what lending growth conditions Triodos Bank meets within the TLTRO program.

Deposits from banks classified by residual maturity:

Deposits from customers classified by residual maturity:

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

The other liabilities fall due within one year for an amount of EUR 55,499 (2020: EUR 54,413).

In 2021 Triodos Bank realised a successful placement of a subordinated Green Bond. The Green Bond has a nominal value of EUR 250 million, a tenor of 10.25 years, and a coupon of 2.25% for the first five and a quarter years after which there is an option to early redeem the bond. If the bond is not early redeemed, the interest rate is reset to maturity at 2.4% above the annual Euro mid swap rate. The Green Bond has been placed below nominal value at 99.497%. The placement of the Green Bond results in an increase of the Tier 2 Capital which is a diversification of the Total Capital of Triodos Bank.

The Green Bond has been issued taking into account the ICMA Green Bond Principles, Climate Bond Initiative Standards and the EU Taxonomy recommendations. It has been assessed by a Second Party Opinion as best market practice on all components. This confirms Triodos Bank’s ambition to ‘change finance, by financing change’ and underlines its position as frontrunner in sustainable banking.

The movement of the subordinated Green Bond issued is as follows:

The 10-year Triodos Bank UK Ltd. bond was issued in 2020 by Triodos Bank UK Ltd. The bond was issued at nominal value in GBP. The annual interest coupon is 4% for the first five years after which there is an option to early redeem the bond. If the bond is not early redeemed, the interest rate is reset to maturity at 3.9% above the Bank of England base rate. The bonds are subordinated to all other liabilities.

The movement of the Triodos Bank UK Ltd. bond issued is as follows:

In 2019 a managed investment fund sold an investment, for which a management fee was received. The sale has been marked, in retrospect, for a fiscal claim and therefore part of the management fee might need to be repaid in the amount of EUR 2.3 million, for which a provision was formed. Further provisions have been formed regarding employee benefits and claims.

An amount of EUR 3.2 million (2020: EUR 4.1million) can be classified as shorter than one year.

The movement of the other provisions is as follows:

Share capital

The equity stated on the consolidated balance sheet is equal to that stated on the parent company balance sheet. 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 (2020: 14,467,056 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 (2020: 14,467,056 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. More details on capital ratios are included in the Pillar 3 report which can be found on the internet site of Triodos Bank.

The movement of the number of shares is as follows:

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.

Translation reserve

The translation reserve includes the currency translation result of foreign operations and the effective portion of the net investment hedge on foreign operations.

Cost of hedging reserve

The cost of hedging reserve relates to the forward component of the net investment hedges which are recognised as cost of hedging.

Fair value reserve

The revaluation reserve relates to the unrealised value adjustments in respect of the acquisition price for participating interests.

Other reserve

The Other reserve is a regulatory reserve for in-house developed intangible assets and is not available for distribution to shareholders. The movement in the other reserve for development costs of internally developed intangible assets is as follows:

The following table shows the movement in the other reserve related to the in-house developed intangibles assets.

Retained earnings

The movement in other reserves includes purchasing of own depository receipts. At year-end 2021, Triodos Bank had purchased 250,634 own depository receipts amounting to EUR 21,556 million (2020: 237,975 own depository receipts amounting to EUR 20,656).

Profit appropriation

As set out in the Articles of Association, the appropriation of profit is as follows:

Part of the profit as reported in the adopted profit and loss account shall be used by the Executive Board to form or add to the reserves to the extent that this is deemed desirable. The remaining profit shall be distributed to the shareholders, unless the General Meeting decides otherwise.

The proposed appropriation of profit is based on the number of depository receipts issued as at 31 December 2021, minus the number of depository receipts purchased by Triodos Bank. The final proposal will be submitted at the Annual General Meeting.

The proposed appropriation of profit (in thousands of EUR) is as follows:

For the year result of 2021 Triodos Bank proposes a dividend of EUR 1.80 per share, equivalent to a 50% pay-out ratio (the percentage of total profit distributed as dividends).