Loans and advances to banks

 

2021

2020

On demand deposits with banks

119,162

85,017

Deposits with banks

67,612

36,543

Interest receivable

-44

-1

Allowance for ECL

-1

-1

Balance sheet value as at 31 December

186,729

121,558

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 and advances to customers

 

2021

2020

Loans

8,896,871

8,046,008

Allowance for ECL

-41,563

-46,543

Balance sheet value as at 31 December

8,855,308

7,999,465

 

2021

2020

 

Gross carrying amount

Allowance for ECL

Carrying amount

Gross carrying amount

Allowance for ECL

Carrying amount

Corporate loans

4,955,244

-38,043

4,917,201

4,912,146

-42,137

4,870,009

Mortgage lending

3,621,128

-1,078

3,620,050

2,739,930

-1,650

2,738,280

Municipality loans

138,628

-

138,628

252,700

-

252,700

Current accounts and credit cards

181,190

-2,442

178,748

118,907

-2,756

116,151

Municipality loans

-14,709

-

-14,709

5,286

-

5,286

Interest receivables

15,390

-

15,390

17,039

-

17,039

Balance sheet value as at 31 December

8,896,871

-41,563

8,855,308

8,046,008

-46,543

7,999,465

Loans classified by residual maturity:

 

2021

2020

Payable on demand

181,837

129,353

1 to 3 months

482,181

583,095

3 months to 1 year

770,856

739,036

1 to 5 years

3,104,344

2,754,583

Longer than 5 years

4,316,090

3,793,398

Balance sheet value as at 31 December

8,855,308

7,999,465

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.

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

Other bonds

925,731

861,978

Interest receivable

7,797

8,494

Fair value hedge accounting

645

1,146

Allowance for ECL

-5

-51

Balance sheet value as at 31 December

1,163,603

1,146,456

The movement in interest-bearing securities is as follows:

 

2021

2020

Balance sheet value as at 1 January

1,146,456

896,996

Purchase

238,254

458,031

Repayments

-211,023

-199,002

Sale

-

-

Amortisation difference between acquisition price and redemption value

-8,932

-9,432

Exchange rate results on foreign currencies

-

-

Interest receivable movement

-697

422

Fair value hedge accounting movement

-501

-534

Net movement in allowance for ECL

46

-25

Balance sheet value as at 31 December

1,163,603

1,146,456

Investments in group companies

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

 

2021

2020

Balance sheet value as at 1 January

223,810

232,800

Acquisitions

-

-

Increase of capital

-

-

Result on participating interests

15,382

14,305

Transfer from or to provision for negative equity of participating interests

-

-

Dividend paid

-2,673

-11,222

Revaluation

-

-

Repayment of capital

-2,106

-686

Sale

-

-

Exchange rate result on foreign currency

13,196

-11,387

Balance sheet value as at 31 December

247,609

223,810

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

5,462

4,460

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

85

80

Balance sheet value as at 31 December

35,690

31,213

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:

 

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

A portion of the shares held in Visa were converted and are 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

4,460

4,737

Acquisitions

-

-

Increase of capital

16

-

Revaluation

654

-209

Repayment of capital

-

-

Divestments

-

-

Conversion1

-

292

Exchange rate results on foreign currencies

332

-360

Balance sheet value as at 31 December

5,462

4,460

1

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

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:

 

2021

2020

Balance sheet value as at 1 January

80

20

Purchases

-

60

Revaluation

5

-

Sales

-

-

Balance sheet value as at 31 December

85

80

Intangible fixed assets

 

2021

2020

Development costs for information systems

44,746

41,839

Computer software

1,196

1,282

Balance sheet value as at 31 December

45,942

43,121

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:

 

2021

2020

Purchase value as at 1 January

65,633

66,307

Cumulative amortisation as at 1 January

-23,794

-29,953

Balance sheet value as at 1 January

41,839

36,354

Capitalised expenses

13,830

14,737

Amortisation

-10,605

-9,252

Impairments

-318

-

Balance sheet value as at 31 December

44,746

41,839

 

 

 

Purchase value as at 31 December

77,429

65,633

Cumulative amortisation as at 31 December

-32,683

-23,794

Balance sheet value as at 31 December

44,746

41,839

Computer software

Computer software relates to software that has been purchased.

The movement in computer software is as follows:

 

2021

2020

Purchase value as at 1 January

3,191

3,825

Cumulative amortisation as at 1 January

-1,909

-1,985

Balance sheet value as at 1 January

1,282

1,840

Purchase

542

276

Amortisation

-613

-834

Impairments

-15

-

Balance sheet value as at 31 December

1,196

1,282

 

 

 

Purchase value as at 31 December

3,330

3,191

Cumulative amortisation as at 31 December

-2,134

-1,909

Balance sheet value as at 31 December

1,196

1,282

Property and equipment

 

2021

2020

Property for own use

59,147

60,558

Equipment

21,301

27,152

Balance sheet value as at 31 December

80,448

87,710

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

 

2021

2020

Purchase value as at 1 January

65,413

80,930

Cumulative revaluation as at 1 January

-1,595

-1,595

Cumulative depreciation as at 1 January

-3,260

-6,221

Balance sheet value as at 1 January

60,558

73,114

Purchase

212

139

Depreciation

-1,623

-1,960

Impairment

-

-4,971

Transfer

-

-5,764

Balance sheet value as at 31 December

59,147

60,558

 

 

 

Purchase value as at 31 December

65,625

65,413

Cumulative revaluation as at 31 December

-1,595

-1,595

Cumulative depreciation as at 31 December

-4,883

-3,260

Balance sheet value as at 31 December

59,147

60,558

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:

 

2021

2020

Purchase value as at 1 January

52,263

55,353

Cumulative depreciation as at 1 January

-25,111

-22,840

Balance sheet value as at 1 January

27,152

32,513

Purchase

1,976

2,344

Sale

-261

-887

Depreciation

-6,188

-6,638

Impairment

-1,378

-83

Transfer

-

-97

Balance sheet value as at 31 December

21,301

27,152

 

 

 

Purchase value as at 31 December

52,957

52,263

Cumulative depreciation as at 31 December

-31,656

-25,111

Balance sheet value as at 31 December

21,301

27,152

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.

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 letting these assets and are therefore presented as investment property.

The movement in the investment property is as follows:

 

2021

2020

Purchase 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

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

16,062

1,137

449

17,648

18,220

1,413

343

19,976

Depreciation

-2,370

-651

-68

-3,089

-2,473

-601

-68

-3,142

Additions

173

677

-

850

333

367

174

874

Disposals

-172

-41

-

-213

-18

-42

-

-60

Balance at 31 December

13,693

1,122

381

15,196

16,062

1,137

449

17,648

Lease liabilities

 

2021

2020

 

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Current

2,222

824

72

3,118

1,767

376

72

2,215

Non-current

12,124

301

315

12,740

14,865

792

380

16,037

Balance sheet at 31 December

14,346

1,125

387

15,858

16,632

1,168

452

18,252

 

2021

2020

Maturity analysis – contractual undiscounted cash flows

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Less than one year

2,181

519

72

2,772

2,418

397

72

2,887

One to five years

5,115

596

205

5,916

8,042

1,041

242

9,325

More than five years

7,154

-

110

7,264

12,082

-

144

12,226

Undiscounted lease liabilities at 31 December

14,450

1,115

387

15,952

22,542

1,438

458

24,438

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

19,411

9,789

Other

43,775

34,644

Allowance for ECL

-1,119

-705

Balance sheet value as at 31 December

64,767

47,644

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.

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

Reposessed assets

6,544

10,343

Own property held for sale

6,135

5,860

Balance sheet value as at 31 December

12,679

16,203

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.

Deposits from banks

 

2021

2020

Deposits from banks

73,919

66,965

TLTROIII

1,550,000

750,000

Interest payable

-15,614

-1,825

Balance sheet value as at 31 December

1,608,305

815,140

Deposits from customers

 

2021

2020

Business clients:

 

 

Saving accounts

1,235,538

1,440,083

Fixed term deposits

101,866

117,028

Current accounts

2,424,143

2,107,769

 

 

 

Retail clients:

 

 

Saving accounts

5,332,991

4,581,106

Fixed term deposits

373,985

415,204

Current accounts

1,916,959

1,520,479

 

 

 

Interest payable

718

1,502

Balance sheet value as at 31 December

11,386,200

10,183,171

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:

 

2021

2020

 

Business clients

Retail clients

Total

Business clients

Retail clients

Total

Payable on demand

3,690,041

7,224,401

10,914,442

3,578,695

6,075,856

9,654,551

1 to 3 months

8,101

73,215

81,316

14,639

78,469

93,108

3 months to 1 year

33,422

173,778

207,200

26,265

193,035

219,300

1 to 5 years

26,240

123,229

149,469

40,572

141,003

181,575

Longer than 5 years

3,980

29,793

33,773

5,180

29,457

34,637

Balance sheet value as at 31 December

3,761,784

7,624,416

11,386,200

3,665,351

6,517,820

10,183,171

Other liabilities

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

 

2021

2020

Other liabilities

15,221

17,014

Other accruals and deferred income

35,068

32,045

Balance sheet value as at 31 December

50,289

49,059

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.

Debt issued and other borrowed funds

 

2021

2020

Subordinated Tier 2 instruments:

 

 

Subordinated Green Bond (institutional investors)

247,930

-

Interest payable

866

-

Balance sheet value as at 31 December

248,796

-

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:

 

2021

2020

Balance sheet value as at 1 January

 

 

Issuance

247,868

-

Amortisation

62

-

Interest payable

866

-

Balance sheet value as at 31 December

248,796

-

Provisions

 

2021

2020

Financial guarantee contracts issued

20

13

Loan commitments issued

1,055

1,724

Other provisions

1,062

1,501

Balance sheet value as at 31 December

2,137

3,238

The movement of the provisions is as follows:

 

2021

2020

Balance sheet value as at 1 January

1,501

515

Addition

511

998

Withdrawal

-182

-12

Release

-768

-

Exchange rate differences

-

-

Balance sheet value as at 31 December

1,062

1,501

Capital

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:

 

2021

2020

Number of shares as at 1 January

14,467,056

14,401,765

Increase of share capital

-

65,291

Stock dividend

-

-

Number of shares as at 31 December

14,467,056

14,467,056

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.

Other reserve

 

2021

2020

Development costs

46,431

43,806

Balance sheet value as at 31 December

46,431

43,806

Development costs

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

 

2021

2020

Balance sheet value as at 1 January

43,806

38,914

Transfer from retained earnings

2,625

4,892

Balance sheet value as at 31 December

46,431

43,806

Retained earnings

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).

Contingent liabilities

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

 

2021

2020

Credit substitute guarantees

35,929

39,332

Non-credit substitute guarantees

53,113

50,954

Total contingent liabilities

89,042

90,286

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.

Irrevocable facilities

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

 

2021

2020

Undrawn debit limits on current accounts and credit cards

370,066

372,931

Accepted loans not yet paid out

976,187

1,260,811

Valid loan offers not yet accepted

127,829

106,206

Other facilities

455,500

496

Total irrevocable facilities

1,929,582

1,740,444