Notes to the parent company balance sheet

Received cash collateral regarding forward currency contracts and interest rate swaps was recognised as other assets but are transferred 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 41.2 million). These are on demand deposits at Cecabank in 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) and ABN AMRO EUR 39.2 million (2020: 12.6 million). A deposit of EUR 1.0 million (2020: EUR 1.0 million) is subordinated. All other deposits can be freely disposed of.

Loans classified by residual maturity:

EUR 65.0 million (2020: EUR 252.7 million) of the loans relates to loans to local authorities with a maximum original maturity of one year and one day.

The loans and advances to customers includes an amount of EUR 33.2 million (2020: EUR 37.9 million) regarding loans provided to consolidated participating interests.

A breakdown related to received collateral, relevant industries, sectors and per geographic region can be found in the pillar 3 report 2021 which can be found on the website of Triodos Bank.

The movement in interest-bearing securities is as follows:

The investments in group companies relate to the subsidiaries of Triodos Bank, mainly being Triodos Bank UK limited and Triodos Investment Management B.V.

The movement of the participating interest in group companies is as follows

This relates to equity participations that are held long-term for business operation purposes. The statement of equity participations in accordance with Section 2:379 of The Netherlands Civil Code is included under the accounting principles for consolidation in the Notes to the consolidated Annual Accounts.

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

The movement of the participating debt at fair value through profit and loss is as follows:

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.

The movement in shares is as follows:

Development costs for information systems

The development costs for information systems relate to the development costs for the banking system.

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

Computer software

Computer software relates to software that has been purchased.

The movement in computer software is as follows:

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

The transfer in 2020 relates by the decision of the Executive Board of Triodos Bank to sell the buildings located at the Nieuweroordweg 1 and Utrechtseweg 60 in Zeist. These buildings were reclassified to assets held for sale in 2020. Refer to note 7 Property and equipment and 12 Non-current Assets Held for Sale of the consolidated financial statements for further details.

The movement in equipment is as follows:

Fully depreciated equipment with a total purchase value of EUR 1.0 million (2020: EUR 3.5 million) has been disposed of.

The transfer in 2020 relates to the decision of the Executive Board of Triodos Bank to sell the equipment located at the Nieuweroordweg 1 and Utrechtseweg 60 in Zeist. The equipment was reclassified to assets held for sale in 2020. Refer to note 7 Property and equipment and 12 Non-current Assets Held for Sale of the consolidated financial statements for further details.

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 letting these assets and are therefore presented as investment property.

The movement in the investment property is as follows:

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

Lease liabilities

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

Received cash collateral regarding forward currency contracts and interest rate swaps was recognised as other assets but are transferred 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.

Of the other assets, EUR 32.0 million has a maturity of less than one year (2020: EUR 40.2 million). Due to the nature and the maturity of the other assets, the fair value approximates the carrying value.

The other assets includes an amount of EUR 1.3 million (2020: EUR 68.0 million) regarding receivables from consolidated participating interests.

The balance sheet value of the assets held-for-sale as at 31 December can be broken down as follows:

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.

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 book value can be explained by a revaluation based on the sale agreement in 2021.

The Other funds entrusted item includes an amount of EUR 12.2 million (2020: EUR 13.4 million) for deposits from consolidated participating interests.

Funds entrusted classified by residual maturity:

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

Of the other liabilities, EUR 50.1 million has a maturity of less than one year (2020: EUR 47.7 million). Due to the nature and the maturity of the other liabilities, the fair value approximates the carrying value.

The other liabilities includes an amount of EUR 0 million (2020: EUR 2.4 million) regarding payables to consolidated participating interests.

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 is in line with 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 movement of the provisions is as follows:

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.

The movement in the number of shares is as follows:

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.

Development costs

The movement in the other reserve for development costs is as follows:

The movement in retained earnings 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: 237,976 amounting to EUR 20,656).

This item relates to credit-substitute guarantees and non-credit-substitute guarantees that are partly secured by blocked accounts for the same amount.

Credit substitute guarantees are guarantees to customers for loans provided to these customers by other banks. Non-credit substitute guarantees are guarantees to customers for all other obligations of these customers to third parties. For example:

• Obligations to purchase sustainable goods, such as wind turbines.

• Obligations to decommission equipment or reinstate property (mostly related to project finance provided by Triodos Bank).

During 2020, Triodos Bank has provided a guarantee with a maximum of EUR 20 million to Triodos Investment Management relating to a transaction that was made on behalf of an investment fund managed by Triodos Investment Management. Triodos Bank receives a fee of 0.1% per annum over the maximum guarantee.

These relate to the total liabilities in respect of irrevocable undertakings, which may lead to a further loan.