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

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 60 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.

Personnel and other administrative expenses

 

2021

2020

Personnel expenses

 

 

  • salary expenses

71,026

65,462

  • pension expenses1

9,446

8,558

  • social security expenses

13,185

12,162

  • temporary co-workers

21,532

16,495

  • other staff costs

5,974

5,723

  • capitalised co-worker costs

-9,670

-7,981

Total personnel expenses

111,493

100,419

 

 

 

Other administrative expenses:

 

 

  • office costs

3,521

3,503

  • IT costs

17,392

14,751

  • external administration costs

10,635

10,358

  • travel and lodging expenses

710

901

  • fees for advice and auditor1

13,278

7,206

  • advertising charges

6,325

4,700

  • accommodation expenses

4,473

4,466

  • other expenses

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

1

The details of the pension scheme and of the auditor fees are included in note 27 Personnel and other administrative expenses of the financial statements.

2

Of which 491.2 FTE (2020: 474.8 FTE) works outside of the Netherlands.

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

1

Modification result will be shown in Other income as of 2021, refer to section 57 Other income

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,

 

 

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

 

Susanne Hannestad

 

1

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.