Assets under management

Triodos Bank’s total assets under management decreased by EUR 1.6 billion in 2022 to EUR 22.6 billion, driven by a decrease of the total balance sheet by EUR 0.7 billion to EUR 15.8 billion (2021: 16.5 billion) caused by the repayment of the TLTRO III funding of EUR 1.6 billion. Our funds under management decreased by EUR 0.9 billion to EUR 6.8 billion per end of December 2022 (2021: EUR 7.7 billion) which was mainly due to a decline stock prices and a lower inflow or, in some cases, even an outflow of funds.

Balance sheet

Triodos Bank recorded an increase of sustainable loans by EUR 452 million in 2022 to EUR 10.6 billion at the end of December 2022 (2021: EUR 10.2 billion). The cash position decreased by EUR 1.7 billion, mainly due to the repayment of the TLTRO funding. The loans-to-funds-entrusted ratio has increased to 76.9% in 2022 (2021: EUR 76.5%) as additional funds entrusted on the liability side, were primarily used to further develop our sustainable loan portfolio. Our funds entrusted increased by EUR 0.5 billion in 2022, which resulted in an overall position of EUR 13.8 billion (2021: EUR 13.3 billion).

The bank’s equity position was overall stable and marginally increased by EUR 9 million to EUR 1,259 million per December 2022 (2021: EUR 1,250 million) due to the net profit of 2022 minus the dividend pay-outs in May and October 2022.

The balance sheet provision for expected credit losses (ECL) shows a limited increase of EUR 1.5 million to EUR 53.0 million per end of December 2022. The calculation of ECL stages 1 and 2 for potential future credit losses (not yet incurred) are particularly sensitive to forward-looking macro-economic parameters (e.g. gross domestic product, unemployment rate). In 2022, the global economic outlook remained uncertain due to the Russian invasion in Ukraine, the increased inflation, and energy price increases. The bank is closely monitoring the development of forward-looking macro-economic parameters and applies, if needed, adjustments to its internal ECL model at least monthly. The provision of ECL stages 1 and 2 decreased by EUR 0.2 million over the last 12 months to EUR 13.4 million per end of December 2022. However, the releases/decreases recorded in stages 1 and 2 were offset by increases in stage 3. The ECL stage 3 provision increased by EUR 1.7 million to EUR 39.7 million in 2022.

Triodos Bank benefits from high credit quality and a geographically well diversified loan portfolio. The risk profile of our loan portfolio implies that if there is an improvement in the forward-looking macro-economic parameters, perhaps because of better-than-expected post-inflation economic conditions, might result in a reduction of the bank’s overall ECL provision. Further details can be found in the following paragraphs on our financial results and in the Financials.

EUR 10.6 billion

Loans to projects across Europe benefitting people and planet

Profit or loss account

Triodos Bank reports a net profit of EUR 49.9 million after tax for 2022, which is EUR 0.9 million lower than the same period last year (EUR 50.8 million) caused by the provision for the restructuring (EUR 5.0 million) and the expenses related to the MTF listing and DR litigations (EUR 13.9 million). When these expenses are adjusted the net profit amounts to EUR 64.5 million after tax for 2022, which is EUR 13.7 million higher than the same period last year (EUR 50.8 million).

Based on the expected benefits from the earlier announced optimisation of the business and operating model, and in view of the return to positive interest rates, Triodos Bank increases its medium term return on equity (RoE) target from 4-6% to 5-7%. This will further enable Triodos Bank to combine the distribution of half of its profits to the depository receipt holders in line with the dividend policy, with the funding of its organic growth by profit retention, a strategy which is in the interest of all its stakeholders. For 2022, the bank reports a RoE of 4.0% (2021: 4.1%). After adjusting the above-mentioned expenses, the RoE in 2022 amounts to 5.1%.

Our total income, EUR 375.3 million in 2022 (2021: EUR 341.9 million) increased, driven by lending growth and improving interest margins, notwithstanding lower funds under management. The underlying interest result records an increase of EUR 31.6 million to EUR 253.1 million in 2022 (2021: EUR 221.5 million), supported by conscious lending growth in sustainable economic sectors in Europe driving our ambitious net-zero target in 2035, and improved interest rate margins.

The bank’s commission result improved by 4.2% to EUR 120.9 million in 2022 (2021: EUR 116.0 million) due to additional management fees and fees for payment transactions. The margin over balance sheet amounts to 0.3% for 2022 (2021: 0.3%). The margin over RWA in 2022 was 0.7% (2021: 0.8%).

Assets committed to the triple bottom line (TBL) and the real economy

Triodos Bank is a values-based bank and applies the Global Alliance for Banking on Values (GABV) scorecard using indicators like ‘assets committed to TBL’ and ‘assets committed to real economy’ to monitor and qualify impact.

Real-economy assets in a values-based bank should be relatively high. Financial exposures can be classified as 'real economy' (as opposed to financial economy) if it is directly linked to a real-economy asset or activity. This means that the exposure is aimed at directly supporting the production of goods and services, as opposed to focusing primarily on buying and selling in the financial markets.

In 2022, Triodos Bank's real economy to total assets ratio was 77% (2021: 70%). We lend and invest in the real economy because that is where we can have a positive impact on people’s lives and safeguard the environment.

Triodos Bank has 77% (2021: 70%) of its total assets committed to triple bottom line. This figure provides the best indication of a bank’s commitment to sustainability. Triple bottom line assets refer to assets not only focused on economic benefits, but also on positive social and environmental benefits: people, planet and prosperity.

For more information and the complete GABV scorecard see section Our impact approach and Appendix IV – Global Alliance for Banking on Values scorecard – quantitative evidence of our impact .

The bank continues to focus on realising healthy interest margins and improving fee income from investment fund and payment solutions.

The bank’s total operating expenses (excluding loan impairments) increased by EUR 24.9 million to EUR 300.1 million in 2022 (2021: EUR 275.2 million), mainly due to additional employee expenses for compliance and anti-money laundering (AML) topics, costs associated with the preparation of the MTF listing and legal advisor costs in relation to our DRs and the restructuring provision (EUR 5.0 million). These expense drivers have an impact on our short-term ability to further improve our cost-income ratio (CIR). In May 2022, we announced the optimisation of our operating model to further sustain the increase of positive impact and the enhancement of our financial performance. Over 2022 the bank reports a cost-income ratio of 80% (2021: 80%). When excluding the provision for the restructuring and the expenses related to the preparation of the MTF listing and DR legal advisor costs the CIR amounts to 75% (2021: 80%). In future periods the bank will continue to focus on realising cost synergies while coping with regulatory cost increases.

Our loan business remains resilient. The cumulated ECL expenses increased over the last 12 months and resulted in a net increase of EUR 8.5 million in 2022. In 2022, the global economic outlook significantly changed, and inflation rates spiked, causing uncertainties which could lead to significant disruptions in value chains. In particular, the volatile macro-economic forward-looking parameters led to a release in ECL stages 1 and 2 of EUR 0.2 million. Further, and due to the worsening of the economy, we saw an increase in ECL stage 3 provisioning covering defaulted loans in the amount of EUR 1.7 million. Total ECL expenses on loans in 2022 compared to the average loan book over 2022 resulted in clearly normalised risk cost ratio (2022: 8 bps; 2021: 0 bps; 2020: 27 bps). The annual incurred loss rate in ECL stage 3 amounts to 8 bps for 2022 (2021: 6 bps; 2020: 12 bps). Both factors still underpin the high credit quality in Triodos Bank’s loan portfolio, which focuses on balancing impact, risk and return for each single loan engagement.


Considering the achieved net result for the year 2022 and taking into account the discussions in the AGM (May 2022) and the EGM (October 2022) around our dividend policy, Triodos Bank proposes a dividend over 2022 amounts to EUR 2.11 per Depository Receipt (DR) (2021: EUR 1.80) excluding the extraordinary dividend of EUR 1.01 per DR. This includes the earlier paid interim dividend of EUR 0.35 and a final dividend amount of EUR 1.76 per DR that Triodos Bank will propose at the Annual General Meeting in May 2023.

It needs to be considered that this final dividend comes on top of the interim dividend paid in October 2022 of EUR 0.35 per share, taking the total pay-out ratio 2022 of the interim and the final dividend together to a one-time level of 60%, as explained in the EGM of October 2022. The dividend will only be paid in cash as an economic price for the DRs at which these new DRs would be issued can only be determined once trading has resumed. The remaining profit will be attributed to the retained earnings of the bank and will be utilised to make impact with our lending activities.

In addition, an extraordinary dividend was paid in October 2022 of EUR 1.01 per share.

Cash payments per DR represent gross amounts which are subject to Dutch dividend withholding tax and other applicable taxes for those domiciled outside of the Netherlands.

Prudential capital and liquidity

The prudential capital of Triodos Bank consists of Common Equity Tier 1 (CET1) and subordinated debt capital (Tier 2). The bank’s capital ratios (CET1 and TCR) were strengthened with the shareholder’s resolution at the AGM in May 2022 to partially retain profits. This capital has been utilised for additional lending to our customers and has in this way contributed to new impact creation. Due to this growth of the lending portfolio, the bank’s total capital ratio (TCR) decreased from 21.3% in December 2021 to 21.0% in December 2022. The minimum total capital ratio (TCR) for Triodos Bank is 13.9% in 2022 based on the overall capital requirements. The CET1 capital increased by 1.8% over the last 12 months to EUR 1,165 million per end of December 2022 (2021: EUR 1,144 million). This increase was mainly driven by retained earnings after the AGM profit resolution in May 2022. Triodos Bank’s mid-term strategy aims for a CET1 ratio of at least 15.0% in the current regulatory context. The CET1 ratio ended at 17.3% in December 2022 (2021: 17.5%) in line with expectations and well above internal hurdle rates. Tier 2 capital remained stable at EUR 255 million per end of December 2022 (2021: EUR 255 million) mainly consisting of the subordinated green bond issued in November 2021. The leverage ratio of Triodos Bank as per December 2022 is 6.9% ( 2021: 8.1%), well above the minimum requirement of 3.0%. The decrease of the leverage ratio is mainly due to the termination of the temporary application of the Capital Requirements Regulation (CRR) exemption as per 1 April 2022 where certain central bank exposures were previously allowed to be excluded from the leverage ratio.

The bank’s overall liquidity position remains robust with an LCR of 193% per end of December 2022 (2021: 229%). The regulatory minimum LCR is 100%. The decrease relates to the repayment of EUR 1,550 million TLTRO funding with the ECB.

Triodos Bank will continue to work on improving its profitability while maintaining a solid equity base, capital ratios and a substantial liquidity surplus. The bank recognises that this modest risk strategy has implications for its target return on equity.

Depository Receipts

The number of individual Depository Receipt holders remained stable at 43,545 in 2022. Due to legal reporting requirements applicable to Dutch financial institutions, the economic value, or fair value, of Triodos Bank Depository Receipts (DRs) must be determined as per 1 January 2023. As there is currently no trading in Triodos Bank DRs, the economic value can only be determined on the basis of an estimate. The estimated economic value of a Triodos Bank DRs as per 1 January 2023 has been determined to be EUR 60. This was communicated on 21 December 2022. To assist with the determination of the estimate, Triodos Bank engaged valuation specialists from an international accounting and consultancy firm. It should be noted that this valuation is for fiscal reporting requirements only and does not represent an indication about the price of the DRs for the future listing on an MTF.

Multilateral Trading Facility

On 21 December 2021, Triodos Bank announced the decision to pursue a listing of our Depository Receipts (DRs) on a Multilateral Trading Facility (MTF). Triodos Bank is taking all necessary steps to prepare for an MTF listing, including obtaining all relevant approvals. A listing on an MTF provides a route to improving tradability for our investors based on variable pricing, instead of pricing based on net asset value. An MTF listing will enable Triodos Bank to pursue its mission in line with its values and retain its identity. The MTF listing also provides Triodos Bank with potential access to the capital markets in the future.

In 2022, Triodos announced the choice of Captin as the MTF provider. Together with Captin, we have continued the preparations for the listing and we have successfully enrolled the first Depository Receipt holders to the Captin platform in order to be able to trade in DRs as per listing, which is expected in Q2 of 2023.

Public rating from Fitch

Fitch Ratings announced on 9 December 2022 it has reaffirmed Triodos Bank’s Long-Term Issuer Default rating at ‘BBB’ and Viability rating at ‘bbb’. Fitch has revised the outlook from stable to negative as it reasons that legal disputes with some of Triodos Bank's Depository Receipt holders regarding the suspension of trade of its Depository Receipts may create a certain level of uncertainty. According to Fitch, Triodos Bank’s ratings primarily reflect its established niche franchise and business model in the sustainable banking segment and an average – yet constrained – profitability. The ratings also consider Triodos Bank's solid capitalisation, which compares well with those of similarly rated peers. The bank's adequate asset quality and healthy funding and liquidity profile support the ratings. Fitch’s rating analysis was done as part of the regular annual review process. The independent rating report for Triodos was issued by Fitch Ratings on 9 December 2022 (see website Triodos Bank rating 'BBB', revises outlook | Triodos Bank).

Commercial offices in Spain

In 2022 Triodos Bank executed a modernisation program in relation to our local footprint in Spain. Based on an in-depth analysis of the Spanish central and commercial offices, we adapted towards the changing customer needs, and we improved our service offerings, including a more integrated and efficient organisational set-up. This has not led to a decrease of FTE in the local organisation. All of our co-workers could be reassigned with jobs in relation to KYC and anti money laundering at the central office in Spain.