Interest income
| 2021 | 2020 |
|---|---|---|
Loans and advances to customers | 169,624 | 162,060 |
Loans and advances to banks | 50 | 225 |
Negative interest expense on TLTRO III | 13,703 | 1,911 |
Debt securities | 8,241 | 10,192 |
Other interest income | 2,707 | 91 |
Negative interest expense other | 6,441 | 3,964 |
Total interest income | 200,766 | 178,443 |
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 does not include transaction results (2020: nil).
The interest income includes income derived from loans provided to consolidated participating interest in the amount of EUR 129 (2020: EUR 175).
Interest expense
| 2021 | 2020 |
|---|---|---|
Deposits from customers | -2,719 | -4,408 |
Subordinated liabilities | -928 | - |
Deposits from banks | -656 | -937 |
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 | -2,643 | -2,028 |
Total interest expense | -21,590 | -16,591 |
Investment income
| 2021 | 2020 |
|---|---|---|
Dividend from other participations | 310 | 449 |
Realized result from other participations | - | - |
Total investment income | 310 | 449 |
Fee and commission income
| 2021 | 2020 |
|---|---|---|
Guarantee commission | 849 | 598 |
Transaction fee securities | 1,319 | 2,210 |
Payment transactions | 35,927 | 31,761 |
Lending | 11,308 | 11,475 |
Asset Management | 9,045 | 6,723 |
Management fees | 5,017 | 3,949 |
Other commission income | 4,349 | 4,433 |
Total fee and commission income | 67,814 | 61,149 |
Fee and commission expense
| 2021 | 2020 |
|---|---|---|
Commission to agents | 295 | 123 |
Asset Management | 916 | 613 |
Other commission expense | 4,360 | 3,310 |
Total fee and commission expense | 5,571 | 4,046 |
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 |
Total net result FVTPL | 2,003 | -361 |
Other income
| 2021 | 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Exchange results for foreign currency transactions | 2 | 115 | |||||||||
Transaction results on currency forward contracts | 23 | 56 | |||||||||
Realized results assets not in use1 | - | - | |||||||||
Income assets not in use1 | 183 | 181 | |||||||||
Hedge accounting ineffectiveness | 34 | 111 | |||||||||
Modification result2 | 94 | - | |||||||||
Other income | 1,689 | 290 | |||||||||
Total other income | 2,025 | 753 | |||||||||
| |||||||||||
The other income relates to fees for other services performed and results from asset disposals.
Personnel and other administrative expenses
| 2021 | 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Personnel expenses |
|
| |||||||||
| 71,026 | 65,462 | |||||||||
| 9,446 | 8,558 | |||||||||
| 13,185 | 12,162 | |||||||||
| 21,532 | 16,495 | |||||||||
| 5,974 | 5,723 | |||||||||
| -9,670 | -7,981 | |||||||||
Total personnel expenses | 111,493 | 100,419 | |||||||||
|
|
| |||||||||
Other administrative expenses: |
|
| |||||||||
| 3,521 | 3,503 | |||||||||
| 17,392 | 14,751 | |||||||||
| 10,635 | 10,358 | |||||||||
| 710 | 901 | |||||||||
| 13,278 | 7,206 | |||||||||
| 6,325 | 4,700 | |||||||||
| 4,473 | 4,466 | |||||||||
| 6,966 | 6,871 | |||||||||
Total other administrative expenses | 63,300 | 52,756 | |||||||||
|
|
| |||||||||
Total personnel and other administrative expenses | 174,793 | 153,175 | |||||||||
|
|
| |||||||||
Average number FTE's during the year2 | 1,097.7 | 1,035.6 | |||||||||
| |||||||||||
Depreciation, amortisation and value adjustments of property and equipment, and intangible assets
| 2021 | 2020 |
|---|---|---|
Amortisation of intangible fixed assets | 11,218 | 10,072 |
Impairment of intangible fixed assets | 333 | - |
Amortisation & impairment charge for the year | 11,551 | 10,072 |
|
|
|
Depreciation of property and equipment | 11,139 | 11,920 |
Impairment of tangible fixed assets | 2,319 | 5,244 |
Amortisation & impairment charge for the year | 13,458 | 17,164 |
Depreciation has been reduced by the part that is charged on to related parties.
Impairment result on financial instruments
This item consists of expenses associated with write-downs on loans and other receivables.
| 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|
Allowance for expected credit loss | -2,969 | 20,582 | |||||||
Modification result1 | - | 7 | |||||||
Correction on addition to provision doubtful debts regarding interest that has been invoiced but not received | - | - | |||||||
Impairments other receivables | 78 | 286 | |||||||
Total impairment result on financial instruments | -2,891 | 20,875 | |||||||
| |||||||||
Taxation on operating result
| 2021 | 2020 |
|---|---|---|
Taxation to be paid | 12,827 | 7,940 |
Deferred taxation | 642 | -2,328 |
Total taxation on operating result | 13,469 | 5,612 |
Reconciliation of effective tax rate
| 2021 | 2020 |
|---|---|---|
Result before taxation | 48,846 | 18,510 |
Statutory tax rate | 25.0% | 25.0% |
|
|
|
Statutory tax amount | 12,211 | 4,628 |
|
|
|
Income Non Taxable | -222 | 17 |
Tax Deduction Not Expensed | - | - |
Expenses Non Deductible | 1,266 | 1,095 |
Impact tax rate differences - stat rate foreign jurisdictions | 268 | -293 |
Restatement of deferred taxation items as the result of amended tax rates | 194 | 815 |
Incentives for gifts, community investment and innovation | -326 | -330 |
Other reconciling items | 78 | -320 |
Effective tax amount | 13,469 | 5,612 |
|
|
|
Effective tax rate | 27.6% | 30.3% |
Subsequent events
Fitch Ratings (Fitch) announced on 4 February 2022 it has affirmed the Long-Term Issuer Default rating of Triodos Bank at ‘BBB’ with a stable outlook and has affirmed the Viability Rating of Triodos Bank at ‘bbb’. Fitch’s rating analysis was done at the request of Triodos Bank. The Stable Outlook reflects Fitch’s view that Triodos Bank’s ratings have sufficient headroom at their current level to absorb significant shocks under various scenarios to Fitch’s baseline economic forecast.
The current CRO, Carla van der Weerdt, is expected to require a recovery period of up to 12 months from the health impact of long COVID-19. Triodos Bank will seek a temporary statutory replacement for this role in the Executive Board. Pending the search and approval process for a temporary statutory replacement, André Haag (Chief Finance Officer) currently assumes the statutory oversight responsibility for the Risk function of Triodos Bank, similar to the period June to October 2021. Due to her absence she was not able to sign these financial statements.
The invasion of Ukraine by Russia at the end of February 2022 presents new uncertainty. As the war started in 2022, it has no effect on the financial position presented as per 31 December 2021. The impact on the short term and the longer term on society and financial markets is hard to predict at this moment of publication of our annual report. Triodos Bank does not have direct exposure in Russia, but we anticipate that the effects on society and financial markets will amongst others influence management fees and Expected Credit Losses.
Driebergen-Rijsenburg, 16 March 2022
Supervisory Board, | Executive board, | ||||||||
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| ||||||||
Aart de Geus, Chair | Jeroen Rijpkema, CEO, Chair | ||||||||
Mike Nawas, Vice-Chair | André Haag, CFO | ||||||||
Ernst-Jan Boers | Carla van der Weerdt, CRO1 | ||||||||
Dineke Oldenhof | Jacco Minnaar, CCO | ||||||||
Sébastien D’Hondt | Nico Kronemeijer, COO | ||||||||
Danielle Melis |
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Susanne Hannestad |
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