Interest income

 

2021

2020

Loans and advances to customers

212,530

202,201

Loans and advances to banks

341

811

Debt securities

10,597

12,043

Negative interest expense on TLTRO III

13,703

1,911

Negative interest expense deposits from customers

6,441

3,964

Other interest income

2,708

91

Total interest income

246,320

221,021

The interest income includes income 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 includes transaction result of EUR -236.0 thousand (2020: nil).

The negative interest expense on TLTRO III relates to the negative interest on the funding received from the ECB under Deposits from banks (refer to note 13 on page Deposits from banks).

The negative interest expense other relates to the negative interest received on Deposits from customers (refer to note 14 on page Deposits from customers).

Other interest income mainly relates to a one-off interest amount receivable on estimated amounts to be paid out under the Deposit Guarantee Scheme.

Interest expense

 

2021

2020

Deposits from customers

-5,674

-10,506

Subordinated liabilities

-1,194

-9

Deposits from banks

-663

-1,062

Negative interest income banks

-13,598

-7,599

Negative interest income debt securities

-1,009

-646

Negative interest income other

-37

-973

Other interest expense

-2,675

-2,073

Total interest expense

-24,850

-22,868

 

 

 

Net interest income

221,470

198,153

The interest expense on Deposits from customers has decreased, as interest on saving accounts decreased to 0% or became negative, see interest income disclosure.

Negative interest income banks mainly relates to negative interest paid on cash at central banks. The increase is caused by the additional cash received from TLTRO III funding not yet utilised for lending activities. Net interest income on TLTRO III, after deduction of negative interest paid the aforementioned cash received regarding TLTRO III, amounted to EUR 6.9 million.

In the other interest expense a total of EUR 1.3 million (2020: EUR 1.8 million) was included for the interest on currency forward contracts.

Investment income

 

2021

2020

Dividend from investment securities

310

449

Investment income

310

449

Net fee and commission income

Disaggregation of fee and commission income

In the following table, fee and commission income from contracts with customers in the scope of IFRS 15 is disaggregated by major type of services. The table also includes a reconciliation of the disaggregated fee and commission income with the Group’s reportable segments.

The fees and commission presented in this note include income of EUR 14.0 million (2020: EUR 13.6 million) relating to financial assets and financial liabilities not measured at FVTPL. These figures exclude amounts incorporated in determining the effective interest rate on such financial assets and financial liabilities.

Asset management fees include fees earned by Triodos Bank on trust and fiduciary activities in which the Triodos Bank holds or invests assets on behalf of its customers.

Triodos Bank doesn't have any contract assets or liabilities outstanding on balance sheet date.

For the year ended 31 December

Reportable segments

 

 

 

Bank Netherlands

Bank Belgium

Bank United Kingdom

Bank Spain

Bank Germany

Total banking activities

Investment Management

Other

Total

 

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

Transaction fee securities

1,318

2,159

-

-

-

-

1

51

-

-

1,319

2,210

-

-

-

-

1,319

2,210

Payment transactions

30,506

26,789

105

90

175

153

3,309

3,201

2,007

1,681

36,102

31,914

-

-

-

-

36,102

31,914

Lending

5,037

4,132

2,340

3,750

1,837

1,552

2,629

2,676

1,302

917

13,145

13,027

-

-

-

-

13,145

13,027

Asset Management

6,290

4,663

2,745

2,061

-

-

-

-

-

-

9,035

6,724

-

-

-

-

9,035

6,724

Management fees

-

-

3,266

2,347

615

525

269

215

-

-

4,150

3,087

54,383

49,464

1,482

1,387

60,015

53,938

Other commission income

-

-

1

-

2,297

1,345

3,581

3,723

764

710

6,643

5,778

-

-

4

2

6,647

5,780

Total fee and commission income from contracts with customers

43,151

37,743

8,457

8,248

4,924

3,575

9,789

9,866

4,073

3,308

70,394

62,740

54,383

49,464

1,486

1,389

126,263

113,593

Financial guarantee contracts and loan commitments

73

77

-

-

-

-

383

358

393

163

849

598

-

-

-

-

849

598

Total fee and commission income

43,224

37,820

8,457

8,248

4,924

3,575

10,172

10,224

4,466

3,471

71,243

63,338

54,383

49,464

1,486

1,389

127,112

114,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commission to agents

-

-

-289

-121

-

-

-6

-2

-

-

-295

-123

-

-

-

-

-295

-123

Asset Management

-916

-614

-

-

-

-

-

-

-

-

-916

-614

-3,654

-3,907

-

-

-4,570

-4,521

Other commission expense

-

-

-651

-428

-1,774

-56

-2,450

-1,691

-1,259

-1,192

-6,134

-3,367

-65

-55

-

-

-6,199

-3,422

Total Fee and commission expense

-916

-614

-940

-549

-1,774

-56

-2,456

-1,693

-1,259

-1,192

-7,345

-4,104

-3,719

-3,962

-

-

-11,064

-8,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net fee and commission income

42,308

37,206

7,517

7,699

3,150

3,519

7,716

8,531

3,207

2,279

63,898

59,234

50,664

45,502

1,486

1,389

116,048

106,125

Performance obligations and income recognition policies

Fee and commission income from contracts with customers is measured based on the consideration specified in a contract with a customer. Triodos Bank recognises income when it transfers control over a service to a customer. The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related income recognition policies.

Type of service

Nature and timing of satisfaction of performance obligations, including significant payment terms

Income recognition

Transaction fee securities

Fee charged to customers for processing security transactions. Fee is charged when the transaction is settled.

Income related to transactions is recognised at the point in time when the transaction takes place.

Payment transactions:
Current and savings account subscriptions

Fee charged for opening and maintaining current and savings accounts. Fee is charged on a monthly basis for each month the account is active.

Income related to transactions is recognised at the point in time when the transaction takes place.

Payment transactions:
Transaction fees

Fee charged for processing payment transactions of customers. Fee is charged when the transaction is processed.

Income related to transactions is recognised at the point in time when the transaction takes place.

Lending

Fee charged as part of the lending process, not an integral part of the effective interest rate. These fees are charged either at the start of the loan of during the lifetime.

Income related to transactions is recognised at the point in time when the transaction takes place.

Asset Management

Asset management fees include fees earned by Triodos Bank on trust and fiduciary activities in which the Triodos Bank holds or invests assets on behalf of its customers. Payment is due on at least quarterly basis.

Income from account service and servicing fees is recognised over time as the services are provided, at the latest on the moment of payment.

Management fees

Asset management fees include fees earned by Triodos Investment Management on asset management activities for clients or Triodos Investment Funds. Payment is due on at least quarterly basis.

Income from account service and servicing fees is recognised over time as the services are provided, at the latest on the moment of payment.

Other

These are other fees charged to clients. Payment is mostly due when transactions are settled.

Income related to transactions is recognised at the point in time when the transaction takes place.

Net result from other financial instruments at FVTPL

 

2021

2020

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

2,003

-361

Net result from other financial instruments at FVTPL

2,003

-361

Other income

 

2021

2020

Exchange results for foreign currency transactions

-44

35

Transaction results on currency forward contracts

23

56

Realized results assets not in use1

1,225

-

Income assets not in use1

183

181

Hedge accounting ineffectiveness

34

111

Modification result2

27

-

Other income

652

350

Total other income

2,100

733

1

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

2

Modification result will be shown in Other income as of 2021, refer to section 29 Impairment losses on financial instruments for the modification result in 2020.

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