Cash and cash equivalents

The balance sheet value of the cash and cash equivalents as at 31 December can be broken down as follows:

Amounts in thousands of EUR

2022

2021

On demand deposit Dutch Central Bank

1,717,962

2,568,297

On demand deposit Belgian Central Bank

278,042

513,382

On demand deposit German Central Bank

7,469

244,245

On demand deposit Spanish Central Bank

170,719

506,584

On demand deposit United Kingdom Central Bank

405,870

445,464

Interest receivable

1,078

-383

Balance sheet value as at 31 December

2,581,140

4,277,589

More detailed information regarding cash and cash equivalents can be found in the Risk Management chapter, section Liquidity risk, with quantitative information starting on page Liquidity risk.

Accounting policy

Cash and cash equivalents comprises of cash with central banks. Cash and cash equivalents are carried at amortised cost on the balance sheet.

Loans and advances to banks

Amounts in thousands of EUR

2022

2021

On demand deposits with banks

186,272

145,276

Deposits with banks

146,027

120,588

Interest receivable

201

-44

Allowance for ECL

-7

-24

Balance sheet value as at 31 December

332,493

265,796

Received cash collateral regarding forward currency contracts and interest rate swaps is presented as loans and advances to banks. The increase in received cash collateral is caused by fair value changes in interest rate swaps.

An amount of EUR 144.7 million of the deposits is encumbered (2021: EUR 118.2 million). These are on demand deposits at Cecabank for the amount of EUR 1.0 million (2021: EUR 1.0 million), ING Bank EUR 13.0 million (2021: EUR 13.0 million), Banco Cooperativo EUR 1.5 million (2021: EUR 1.5 million), the Dutch Central Bank EUR 50.0 million (2021: EUR 50.0 million), Rabobank EUR 6.7 million (2021: EUR 13.5 million), and ABN AMRO EUR 72.5 million (2021: EUR 39.2 million). There were no deposits subordinated (2021: EUR 1.0 million). All other deposits can be freely disposed of.

The balance sheet value of the loans and advances to banks as at 31 December can be broken down as follows by residual maturity:

Amounts in thousands of EUR

2022

2021

On demand

186,444

145,217

1 to 3 months

1,358

1,426

3 months to 1 year

-

-

1 to 5 years

-

1,000

Longer than 5 years

-

-

Encumbered assets without a maturity

144,691

118,153

Balance sheet value as at 31 December

332,493

265,796

Accounting policy

Loans and advances to banks are financial instruments initially measured at fair value including any incremental direct transaction costs. The loans and advances to banks are held to collect the contractual cash flows and meet the SPPI criteria. Therefore, subsequent measurement is at amortised cost, using the effective interest method in accordance with the Financial instruments paragraph in the accounting principles on page Financial instruments .

Loans and advances to customers

Loans and advances to customers at amortised cost:

 

2022

Amounts in thousands of EUR

Gross carrying amount

Allowance for ECL

Carrying amount

Net interest

Effective interest rate

Business loans

6,270,426

-47,927

6,222,499

172,417

2.77%

Mortgage lending

4,447,170

-1,414

4,445,756

67,306

1.67%

Short term loans1

60,000

-

60,000

-61

-0.06%

Current accounts and credit cards

159,036

-1,876

157,160

5,178

3.04%

Fair value hedge accounting

-289,691

-

-289,691

-

-

Interest receivables

23,952

-

23,952

-

-

Balance sheet value as at 31 December

10,670,893

-51,217

10,619,676

244,840

2.36%

1

These are loans, mostly to local municipalities, with a maximum maturity of one year and one day.

 

2021

Amounts in thousands of EUR

Gross carrying amount

Allowance for ECL

Carrying amount

Net interest

Effective interest rate

Business loans

6,267,585

-45,366

6,222,219

152,760

2.51%

Mortgage lending

3,621,128

-1,078

3,620,050

56,240

1.77%

Short term loans1

138,628

-

138,628

-762

-0.32%

Current accounts and credit cards

186,192

-2,536

183,656

3,536

2.33%

Fair value hedge accounting

-14,708

-

-14,708

-

-

Interest receivables

17,953

-

17,953

-

-

Balance sheet value as at 31 December

10,216,778

-48,980

10,167,798

211,774

2.19%

1

These are loans, mostly to local municipalities, with a maximum maturity of one year and one day.

The Expected Credit Loss allowance (ECL) 2022 is 0.48% of the total loan portfolio gross carrying amount at 31 December 2022 (31 December 2021: 0.48%).

The annual incurred loss rate, which is the stage 3 impairment expense over the average loan book per 31 December 2022, is 8bps (2021: 6bps).

The movements of the ECL of Loans and Advances to customers for 2022 is presented below. A further breakdown of the movements of the ECL, split between ECL on business loans and current accounts and ECL on mortgages, including comparatives is included within the current disclosure.

Amounts in thousands of EUR

2022

Stage 1

Stage 2

Stage 3

Total

Balance sheet value at 1 January

8,675

3,418

36,887

48,980

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-2,750

1,859

8,076

7,185

of which:

 

 

 

 

- Effect of transition between stages

-907

2,660

510

2,263

- Macro-economic forward looking impact

-2,567

-470

-

-3,037

- Individual loan or advance behaviour

353

99

7,566

8,018

- Update ECL model

371

-430

-

-59

 

 

 

 

 

Net portfolio growth

463

503

-

966

Write-offs

-

-

-5,386

-5,386

Exchange rate differences

-74

-85

-369

-528

Balance sheet value at 31 December

6,314

5,695

39,208

51,217

Amounts in thousands of EUR

2021

Stage 1

Stage 2

Stage 3

Total

Balance sheet value at 1 January

8,148

9,384

33,438

50,970

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-985

-5,899

5,613

-1,271

of which:

 

 

 

 

- Effect of transition between stages

851

-266

395

980

- Macro-economic forward looking impact

-3,916

-6,646

-

-10,562

- Individual loan or advance behaviour

1,302

1,450

5,218

7,970

- Update ECL model

778

-437

-

341

 

 

 

 

 

Net portfolio growth

1,432

-168

-

1,264

Write-offs

-

-

-2,306

-2,306

Exchange rate differences

80

101

142

323

Balance sheet value at 31 December

8,675

3,418

36,887

48,980

The total ECL provision of EUR 49.0 million per 31 December 2021 increased by EUR 2.2 million to EUR 51.2 million per 31 December 2022 due to an increase in Stage 2 of EUR 2.3 million and an increase in Stage 3 of EUR 2.3 million which was offset by a decrease in Stage 1 of EUR 2.4 million. The decrease in Stage 1 is mainly caused by the decrease of EUR 2.6 million due to more favourable macro-economic forward looking parameters compared to 2021. This is partly offset by a net increase of EUR 2.3 million due to transfers from a one-year expected credit loss in Stage 1 to a lifetime expected credit loss in Stage 2 and Stage 3, and an increase in Stage 3 of EUR 8.1 million, offset by write-offs of EUR 5.4 million. This has resulted in a net loss in the profit or loss account of EUR 8.1 million (2021: a net gain EUR 7 thousand).

More detailed information regarding the allowance for ECL and the impairment gain/loss recognised in the profit or loss accounts can be found in the Risk Management chapter, section Credit risk, with quantitative information starting on page Credit risk quantitative disclosures.

The movement of the ECL of Loans and Advances is further split below between the movement of the ECL for Business loans and current accounts and the movement of the ECL for Mortgages.

The following table shows the movements within the ECL for business loans and current accounts. The allowance for expected credit losses in this table includes ECL on off-balance sheet loan commitments for certain retail products such as credit cards and overdrafts, because Triodos Bank determines the ECL per exposure, including any loan commitment component.

ECL loans and advances to customers at amortised cost - Business loans and current accounts

2022

Amounts in thousands of EUR

Stage 1

Stage 2

Stage 3

Total

Balance at 1 January

8,058

3,057

36,787

47,902

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-2,670

1,904

7,868

7,102

of which:

 

 

 

 

- Effect of transition between stages

-906

2,642

497

2,233

- Macro-economic forward-looking impact

-2,534

-415

-

-2,949

- Individual loan or advance behaviour

400

108

7,371

7,879

- Update ECL model

370

-431

-

-61

 

 

 

 

 

Net portfolio growth

308

405

-

713

Write-offs

-

-

-5,386

-5,386

Exchange rate differences

-74

-85

-369

-528

Balance at 31 December

5,622

5,281

38,900

49,803

ECL loans and advances to customers at amortised cost - Business loans and current accounts

2021

Amounts in thousands of EUR

Stage 1

Stage 2

Stage 3

Total

Balance at 1 January

7,287

9,061

32,972

49,320

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-610

-5,868

5,979

-499

of which:

 

 

 

 

- Effect of transition between stages

853

-307

395

941

- Macro-economic forward-looking impact

-3,766

-6,566

-

-10,332

- Individual loan or advance behaviour

1,365

1,462

5,584

8,208

- Update ECL model

938

-457

-

481

 

 

 

 

 

Net portfolio growth

1,301

-237

-

1,064

Write-offs

-

-

-2,306

-2,306

Exchange rate differences

80

101

142

323

Balance at 31 December

8,058

3,057

36,787

47,902

The following table shows the movements within the ECL for mortgage loans.

ECL loans and advances to customers at amortised cost – Mortgages

2022

Amounts in thousands of EUR

Stage 1

Stage 2

Stage 3

Total

Balance at 1 January

617

361

100

1,078

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-80

-45

208

83

of which:

 

 

 

 

- Effect of transition between stages

-1

18

13

30

- Macro-economic forward-looking impact

-33

-55

-

-88

- Individual loan or advance behaviour

-47

-9

195

139

- Update ECL model

1

1

-

2

 

 

 

 

 

Net portfolio growth

155

98

-

253

Balance at 31 December

692

414

308

1,414

ECL loans and advances to customers at amortised cost – Mortgages

2021

Amounts in thousands of EUR

Stage 1

Stage 2

Stage 3

Total

Balance at 1 January

861

323

466

1,650

 

 

 

 

 

Net remeasurement of allowance for expected credit losses

-375

-31

-366

-772

of which:

 

 

 

 

- Effect of transition between stages

-2

41

-

39

- Macro-economic forward-looking impact

-150

-80

-

-230

- Individual loan or advance behaviour

-63

-12

-366

-441

- Update ECL model

-160

20

-

-140

 

 

 

 

 

Net portfolio growth

131

69

-

200

Balance at 31 December

617

361

100

1,078

Loans and advances to customers classified by residual maturity:

Amounts in thousands of EUR

2022

2021

Payable on demand

160,530

186,558

1 to 3 months

451,023

520,850

3 months to 1 year

972,909

896,227

1 to 5 years

3,672,590

3,600,046

Longer than 5 years

5,362,624

4,964,117

Balance sheet value as at 31 December

10,619,676

10,167,798

A total amount of EUR 5.6 million (2021: EUR 9.4 million) of the loans and advances to customers is subordinated.

As part of the interest rate risk management, Triodos Bank entered into interest rate swaps to hedge the interest risk on fixed interest rate loans. Please see Non-trading derivatives and hedge accounting for additional information.

Accounting policy

Loans and advances to customers are financial instruments initially measured at fair value including any incremental direct transaction costs. The loans and advances to customers are held to collect the contractual cash flows and meet the SPPI criteria. Therefore, subsequent measurement is at amortised cost, using the effective interest method in accordance with the Financial instruments paragraph in the accounting principles on page Financial instruments .

Critical judgement and estimates

Triodos Bank determines the ECL which is a critical estimate and includes critical judgements. For more details on the critical judgement and estimate of ECL, refer to Financial instruments .

Debt securities at amortised cost

Amounts in thousands of EUR

2022

2021

Dutch government bonds

9,940

69,667

Belgian government bonds

76,843

108,035

Spanish government bonds

98,356

51,733

United Kingdom government bonds

153,157

125,171

Other bonds

1,343,430

1,119,399

Interest receivable

7,736

8,738

Fair value hedge accounting

350

645

Allowance for ECL

-32

-10

Balance sheet value as at 31 December

1,689,780

1,483,378

Debt securities with a nominal amount of EUR 975.9 million is placed at the Dutch Central Bank (2021: EUR 207.1 million) that can be used for a credit line. In 2021 an amount of EUR 1,064.7 million of debt securities was posted as collateral at the Dutch Central Bank for the deposits from Central Banks (TLTRO) which was repaid in 2022.

Up to 2020, as part of the interest rate risk management, Triodos Bank entered into interest rate swaps to hedge the interest risk on fixed interest rate bonds. These hedge relationships were discontinued as Triodos Bank now applies macro fair value hedge accounting on its loans and advances to customers. The fair value hedge adjustment on debt securities will amortise over the remaining lifetime of the dedesignated hedge relationship.

The movement in debt securities at amortised cost is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

1,483,378

1,317,301

Acquisitions

745,581

402,532

Repayments

-507,669

-229,447

Sale

-

-6,095

Amortisation difference between acquisition price and redemption value

-9,122

-10,725

Exchange rate differences

-21,069

10,956

Interest receivable movement

-1,002

-696

Fair value hedge accounting movement

-295

-501

Net movement in allowance for ECL

-22

53

Balance sheet value as at 31 December

1,689,780

1,483,378

The increase in the debt securities is mainly caused by an increase in the other bonds of EUR 224 million. The other bonds consists of European regional government and corporate bonds, listed and non-listed. The debt securities including the other bonds are specified below.

The interest bearing securities in the statement below, as at 31 December, are valued at amortised cost. This is the book value without the interest receivable, fair value hedge accounting and the allowance for the ECL.

Amounts in thousands of EUR

2022

Issuer

Listed

Non-listed

Maturity <1 year

Maturity >1 year

Of which Green bond1

Total public sector entities

1,420,178

41,253

403,222

1,058,209

32,238

Total non-public sector entities

214,295

6,000

14,716

205,579

41,486

Total

1,634,473

47,253

417,938

1,263,788

73,724

1

These are Green/sustainable bonds of which the proceeds are invested by the issuer in areas such as sustainable energy, energy efficiency and microfinance.

Amounts in thousands of EUR

2021

Issuer

Listed

Non-listed

Maturity <1 year

Maturity >1 year

Of which Green bond1

Total public sector entities

1,166,716

66,920

447,792

785,844

32,356

Total non-public sector entities

232,369

8,000

37,532

202,837

54,564

Total

1,399,085

74,920

485,324

988,681

86,920

1

These are Green/sustainable bonds of which the proceeds are invested by the issuer in areas such as sustainable energy, energy efficiency and microfinance.

Accounting policy

All debt securities at amortised cost are held in the investment portfolio. These are financial instruments initially measured at fair value including any incremental direct transaction costs. The debt securities are held to collect the contractual cash flows and meet the SPPI criteria. Therefore, subsequent measurement is at amortised cost, using the effective interest method in accordance with the Financial instruments paragraph in the accounting principles on page Financial instruments .

Investment securities

Amounts in thousands of EUR

2022

2021

Participating interests designated at fair value through OCI

35,990

30,143

Participating debt at fair value through profit or loss

190

5,463

Associates at equity value

9,436

4,285

Participating equity at fair value through profit or loss

102

85

Balance sheet value as at 31 December

45,718

39,976

As part of its mission, Triodos Bank wishes sustainable banking to create more and more impact over the world. In this respect, Triodos Bank provides equity funding to like minded financial institutions in order to increase growth of the sustainable banking sector. No significant influence can be exercised on our participating interests. These investments are of a strategic nature and are not held for trading. The instruments classified as equities, being the participating interests, are designated to be accounted for at fair value though OCI. The instruments classified as debt, being the participating debt, are mandatorily designated to be accounted for at fair value through profit or loss.

The participating interests designated at fair value through OCI can be broken down as follows:

Amounts in thousands of EUR

2022

2021

 

Participating interest

Carrying amount

Participating interest

Carrying amount

Participating interests designated at fair value through OCI

 

 

 

 

Amalgamated Bank, New York1

2.4%

15,618

2.3%

10,703

Merkur Bank KGaA, Copenhagen1

3.6%

3,127

6.1%

3,203

Cultura Bank Sparebank, Oslo1

1.2%

95

1.2%

100

GLS Gemeinschaftsbank eG, Bochum1

1.5%

10,050

1.6%

10,050

Banca Popolare Etica Scpa, Padova1

0.1%

133

0.1%

133

Ekobanken Medlemsbank, Järna1

0.5%

49

0.6%

52

Social Enterprise Finance Australia Limited, Sydney

4.5%

1

4.5%

1

Bpifrance Financement S.A., Maisons-Alfort.

0.0%

151

0.0%

156

Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden N.V. (FMO), The Hague1

2.0%

1,051

2.0%

760

Thrive Renewables Plc, Bristol

5.4%

3,605

6.0%

3,465

Transactie Monitoring Nederland B.V., Purmerend

3.0%

1,209

3.0%

780

La Société d’Investissement France Active (SIFA), Montreuil

0.1%

295

0.1%

295

Visa Inc, San Francisco1

0.0%

506

0.0%

345

La Bolsa Social, plataforma de financiación participativa, S.A., Madrid

4.7%

100

4.7%

100

Balance sheet value as at 31 December

 

35,990

 

30,143

1

Credit institution

The participating debt at fair value through profit or loss can be broken down as follows:

Amounts in thousands of EUR

2022

2021

 

Participating interest

Carrying amount

Participating interest

Carrying amount

Participating debt at fair value through profit or loss

 

 

 

 

Sustainability – Finance – Real Economies SICAV-SIF public limited liability company, Luxembourg1

-

-

12.8%

5,112

Visa Inc, San Francisco2

0.0%

190

0.0%

351

Balance sheet value as at 31 December

 

190

 

5,463

1

Sustainability – Finance – Real Economies SICAV-SIF public limited liability company (SFRE SIF) merged into Triodos Microfinance Fund (TMF) at 16 September 2022. As a result of the merger, SFRE SIF ceased to exist and Triodos Bank received shares in TMF equal in value to the previous investment in SFRE SIF. The investment in TMF is classified as associate as this is a Triodos Investment Fund.

2

Credit institution

The associates at equity value can be broken down as follows:

Amounts in thousands of EUR

2022

2021

 

Participating interest

Carrying amount

Participating interest

Carrying amount

Associates at equity value

 

 

 

 

Triodos Emerging Markets Renewable Energy Fund, Luxembourg

12.3%

4,211

16.8%

4,285

Triodos Microfinance Fund, Luxembourg1

1.4%

5,225

-

-

Balance sheet value as at 31 December

 

9,436

 

4,285

1

Sustainability – Finance – Real Economies SICAV-SIF public limited liability company (SFRE SIF) merged into Triodos Microfinance Fund (TMF) at 16 September 2022. As a result of the merger, SFRE SIF ceased to exist and Triodos Bank received shares in TMF equal in value to the previous investment in SFRE SIF. The investment in TMF is classified as associate as this is a Triodos Investment Fund.

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

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

30,143

26,673

Acquisitions

-

-

Increase of capital

594

691

Revaluation

4,873

1,801

Repayment of capital

-

-

Divestments

-

-

Exchange rate differences

380

978

Balance sheet value as at 31 December

35,990

30,143

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

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

5,463

4,461

Acquisitions

-

-

Increase of capital

-

16

Revaluation

-542

654

Repayment of capital

-156

-

Divestments

-5,2721

-

Exchange rate differences

697

332

Balance sheet value as at 31 December

190

5,463

1

Sustainability – Finance – Real Economies SICAV-SIF public limited liability company (SFRE SIF) merged into Triodos Microfinance Fund (TMF) as at 16 September 2022. As a result of the merger, SFRE SIF ceased to exist and Triodos Bank received shares in TMF equal in value to the previous investment in SFRE SIF. The investment in TMF is classified as associate at equity value as this is a Triodos Investment Fund.

When a new fund is originated, Triodos Investment Management may decide to provide seed capital to get the fund started. Depending on the fund and its needs, this may be an investment for less than one year or for a longer period. In 2021, the Triodos Emerging Markets Renewable Energy Fund was originated in which seed capital was invested. The investment classifies as an associate and is accounted for using the equity method.

The movement of the associates at equity value is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

4,285

-

Acquisitions

5,2721

4,320

Revaluation

-121

-35

Sales

-

-

Balance sheet value as at 31 December

9,436

4,285

1

Sustainability – Finance – Real Economies SICAV-SIF public limited liability company (SFRE SIF) merged into Triodos Microfinance Fund (TMF) at 16 September 2022. As a result of the merger, SFRE SIF ceased to exist and Triodos Bank received shares in TMF equal in value to the previous investment in SFRE SIF. The investment in TMF is classified as associate at equity value as this is a Triodos Investment Fund.

The movement of the participating equity at fair value through profit or loss is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

85

80

Acquisitions

-

-

Revaluation

17

5

Sales

-

-

Balance sheet value as at 31 December

102

85

Accounting policy

Investment securities include participating interests in other financial institutions either in equity or debt form and it includes seed capital investments in own investment funds that are classified as associates. The participating interests in equity are designated at FVOCI as these are strategic long-term investments. The participating interest in debt form are measured at FVTPL as these do not meet the SPPI criteria. The participating interest in associates are measured using the equity method.

For securities that are listed on an active stock exchange, the fair value will be deemed to be equal to the most recently published stock exchange price. If the security is not listed on an active stock exchange or where there is no regular price quotation, the fair value will be determined to the best of one's ability using all available data, including an annual report audited by an external independent auditor, interim financial information from the institution and any other relevant data provided to Triodos Bank.

Unrealised and realised changes in the value of investment securities at FVOCI are recognised in the other comprehensive income and will not be recycled to profit or loss. Unrealised and realised changes in the value of investment securities at FVPL are recognised in the profit or loss.

Critical judgement and estimates

Triodos Bank determines the fair values of those financial instruments measured at FVOCI and FVTPL periodically which is a critical estimate. For more details on the measurement of fair values refer to Fair value of financial instruments .

Intangible assets

Amounts in thousands of EUR

2022

2021

Development costs for information systems

49,369

46,104

Management contracts

756

957

Computer software

1,100

1,243

Balance sheet value as at 31 December

51,225

48,304

The development costs for information systems

The development costs for information systems contain costs for internally developed intangible assets related to the Banks ICT systems in The Netherlands, Spain and Germany.

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

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

81,816

69,830

Cumulative amortisation as at 1 January

-35,712

-26,556

Balance sheet value as at 1 January

46,104

43,274

Internal development

16,449

13,889

Amortisation

-13,117

-10,829

Impairments

-

-318

Exchange rate differences

-67

88

Balance sheet value as at 31 December

49,369

46,104

 

 

 

Purchase value as at 31 December

99,074

81,816

Cumulative amortisation as at 31 December

-49,705

-35,712

Balance sheet value as at 31 December

49,369

46,104

Management contracts

The management contracts relate to contracts for the management of funds by Triodos Investment Management. When it acquired its participating interest in Triodos Investment Management in 2006, Triodos Bank paid EUR 4 million for this to Stichting Triodos Holding. No impairment was recognised based on the remaining usefulness of the contracts.

The movement in management contracts is as follows:

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

4,030

4,030

Cumulative amortisation as at 1 January

-3,073

-2,871

Balance sheet value as at 1 January

957

1,159

Amortisation

-201

-202

Balance sheet value as at 31 December

756

957

 

 

 

Purchase value as at 31 December

4,030

4,030

Cumulative amortisation as at 31 December

-3,274

-3,073

Balance sheet value as at 31 December

756

957

Computer software

Computer software relates to software that has been purchased. The movement in computer software is as follows:

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

4,088

3,903

Cumulative amortisation as at 1 January

-2,845

-2,573

Balance sheet value as at 1 January

1,243

1,330

Purchases

453

583

Amortisation

-590

-656

Impairments

-

-15

Exchange rate differences

-6

1

Balance sheet value as at 31 December

1,100

1,243

 

 

 

Purchase value as at 31 December

4,478

4,088

Cumulative amortisation as at 31 December

-3,378

-2,845

Balance sheet value as at 31 December

1,100

1,243

Accounting policy

Intangible assets are stated at cost less accumulated amortisation and impairment losses. Amortisation is charged to profit or loss over the asset's estimated economic life using the straight-line method that best reflect the pattern of economic benefits. These estimated useful economic lives are:

  • Internally developed assets: 5 to 10 years

  • Computer software: 3 to 5 years

  • Management contracts: 20 years

Direct costs relating to internally developed assets are capitalised once technical feasibility and economic viability have been established. These costs include co-worker costs and the costs of materials and services. Capitalisation of costs ceases when the asset is capable of operating as intended.

During and after development, accumulated costs are annually reviewed for impairment triggers. If there is an impairment trigger, any impairments will be recognised in the profit or loss in line with the impairment accounting policy for non-financial assets as included on page Impairment of non-financial assets.

The development costs for the banking system will be amortised over the estimated useful life from the moment the system is used, to a maximum of 10 years.

Management contracts paid by Triodos Bank when acquiring the participating interest in Triodos Investment Management B.V. will be written off over a period of 20 years till October 2026. The remaining depreciation period is four years as of the end of 2022.

Computer software that has been purchased will be written off over its useful life. This period will not exceed five years.

Property and equipment

Amounts in thousands of EUR

2022

2021

Property for own use

68,905

71,516

Equipment

19,786

23,148

Balance sheet value as at 31 December

88,691

94,664

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

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

80,297

79,196

Cumulative revaluation as at 1 January

-1,596

-1,596

Cumulative depreciation as at 1 January

-7,185

-5,063

Balance sheet as at 1 January

71,516

72,537

Purchases

-

212

Depreciation

-2,009

-1,998

Impairments

-

-

Exchange rate differences

-602

765

Balance sheet value as at 31 December

68,905

71,516

 

 

 

Purchase value as at 31 December

77,960

80,297

Cumulative revaluation as at 31 December

-

-1,596

Cumulative depreciation as at 31 December

-9,055

-7,185

Balance sheet value as at 31 December

68,905

71,516

The movement in equipment is as follows:

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

57,930

56,736

Cumulative depreciation as at 1 January

-34,782

-27,783

Balance sheet value as at 1 January

23,148

28,953

Purchases

2,678

2,129

Sales

-4

-113

Depreciation

-6,080

-6,551

Impairments

144

-1,378

Exchange rate differences

-100

108

Balance sheet value as at 31 December

19,786

23,148

 

 

 

Purchase value as at 31 December

57,393

57,930

Cumulative depreciation as at 31 December

-37,607

-34,782

Balance sheet value as at 31 December

19,786

23,148

Fully depreciated equipment with a total purchase value of EUR 2.4 million (2021: EUR 1.4 million) has been disposed of.

Accounting policy

Items of property and equipment are stated at cost less accumulated depreciation and impairment losses.

Depreciation is charged to profit or loss on a straight-line basis so as to write-off the depreciable amount of each item of property and equipment over its estimated useful life. The depreciable amount is the cost of an asset less its residual value. Land for own use is not depreciated.

The estimated useful lives of Triodos Bank’s property and equipment are:

  • Property and leasehold property: 40 years (or lease term if shorter)

  • Machinery: 3 to 5 years

  • Furniture and fixtures: 5 years

The residual value and useful life of property and equipment are reviewed at each balance sheet date and updated for any changes to previous estimates.

Property under development is valued at the lower of the expenditure and the expected realised value upon completion. The expenditure consists of payments made to third parties. The difference between the proceeds on disposal of equipment and net carrying value is recognised in the profit or loss account under Other income.

Property and equipment are annually reviewed for impairment triggers. If there is an impairment trigger, any impairments will be recognised in the profit or loss accounts in line with the impairment accounting policy for fixed assets as included on page Impairment of non-financial assets.

Critical judgement and estimates

In December 2019 Triodos Bank moved in the Netherlands to the newly developed office building de Reehorst. The innovative design is based on principles of the circular economy and biomimicry. The design and production of materials are based on the structure derived from nature. The building is re-mountable and modular, built with sustainable and reusable materials.

Within common accounting policies the residual value of owned offices is set at zero as information on residual value is lacking. Because this building is circular and set up to have value in the future, Triodos Bank has investigated the residual value. This was captured in a report from a third party circular demolishing company, in which the value of several re-useable components has been calculated. The value is achieved if the components are remounted as a whole in a new building, considering costs for removing. Based on this report Triodos Bank currently estimated the residual value of de Reehorst at EUR 3.0 million.

The residual value gets its value from the market in which components from the building can be reused. At this moment in time this market is in development and new building initiatives using re-useable materials as a starting point are few. Developments on these fronts and other changes (e.g. CO2-tax) can impact the residual value of de Reehorst in the future.

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 renting out these assets and are therefore presented as investment property.

The movement in the investment property is as follows:

Amounts in thousands of EUR

2022

2021

Acquisition value as at 1 January

10,463

12,788

Cumulative depreciation as at 1 January

-2,558

-1,874

Balance sheet as at 1 January

7,905

10,914

New foreclosed assets

35

-

Sales

-1,037

-1,874

Depreciation

-164

-239

Impairments

-

-896

Balance sheet value as at 31 December

6,739

7,905

 

 

 

Purchase value as at 31 December

8,699

10,463

Cumulative depreciation as at 31 December

-1,960

-2,558

Balance sheet value as at 31 December

6,739

7,905

Leases as lessor

Triodos Bank leases out its investment properties for the purpose of adding value to the repossessed assets. Triodos Bank has recognised the following items in the profit or loss account.

Amounts in thousands of EUR

2022

2021

Rental income

70

183

Operating expenses

-238

-499

Total result on investment properties

-168

-316

Accounting policy

Investment properties comprise land and buildings that are not occupied for use by, or in the operations of Triodos Bank, nor for sale in the ordinary course of business, but are held primarily to earn rental income and/or for capital appreciation. Investment property is initially measured at cost and subsequently stated at cost less accumulated depreciation and impairment losses. Depreciation is determined in accordance with the accounting principles as stated in note 7 Property and equipment. Investment property are annually reviewed for impairment triggers. If there is an impairment trigger, any impairments will be recognised in the profit or loss accounts in line with the impairment accounting policy for fixed assets as included on page Impairment of non-financial assets.

Any gain or loss on disposal of investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.

Transfers are made to (or from) investment property only when there is a change in use. When the use of a property changes such that it is reclassified as property and equipment, its carrying value at the date of reclassification becomes its cost for subsequent accounting.

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

 

2022

2021

Amounts in thousands of EUR

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Balance sheet value as at 1 January

15,095

1,258

381

16,734

17,538

1,360

448

19,346

Depreciation

-2,460

-700

-55

-3,215

-2,537

-748

-67

-3,352

Additions

1,613

349

318

2,280

173

736

-

909

Exchange rate differences

-65

-

-

-65

93

-

-

93

Disposals

-2,187

-

-220

-2,407

-172

-90

-

-262

Balance sheet value as at 31 December

11,996

907

424

13,327

15,095

1,258

381

16,734

Lease liabilities

 

2022

2021

Amounts in thousands of EUR

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Less than one year

2,250

733

56

3,039

2,381

891

72

3,344

More than one year

10,333

180

372

10,885

13,397

369

315

14,081

Balance sheet value as at 31 December

12,583

913

428

13,924

15,778

1,260

387

17,425

The below table shows the maturity analysis for contractual undiscounted cash flows.

 

2022

2021

Amounts in thousands of EUR

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Less than one year

2,454

490

56

3,000

2,772

630

72

3,474

One to five years

5,514

421

372

6,307

7,351

670

211

8,232

More than five years

5,557

-

-

5,557

9,843

-

134

9,977

Undiscounted lease liabilities as at 31 December

13,525

911

428

14,864

19,966

1,300

417

21,683

Amounts recognised in profit or loss

Amounts in thousands of EUR

2022

2021

Depreciation

-3,214

-3,352

Interest on lease liabilities

-345

-408

Expenses of short-term leases

-25

-46

Expenses of low-value assets

-20

-5

Sub-lease income

48

48

Amounts recognised in the statement of cash flows

Amounts in thousands of EUR

2022

2021

Total cash outflow for leases

3,443

3,675

Real estate leases

Triodos Bank leases land and buildings for its office space. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. Some leases provide for additional rent payments that are based on changes in local price indices.

Other leases

Triodos Bank leases vehicles and equipment, with lease terms of generally three to five years. Triodos Bank also leases IT equipment with contract terms of generally one to three years. Leases with a contract term of less than one year and/or a value of less than EUR 5 thousand or EUR equivalent are considered short-term and/or leases of low-value items.

Triodos Bank has elected not to recognise right-of-use assets and lease liabilities for short-term and low-value leases.

Accounting policy

As a lessee

Triodos Bank assesses whether a contract is or contains a lease, at inception of a contract. Triodos Bank recognises a right of use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, Triodos Bank recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, Triodos Bank uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

  • Fixed lease payments (including in-substance fixed payments), less any lease incentives;

  • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

  • The amount expected to be payable by the lessee under residual value guarantees;

  • The exercise price of purchase options, if the lessee is reasonably certain to exercise the options;

  • Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease; and

  • Lease payments to be made under reasonably certain extension options.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

Triodos Bank remeasures the lease liability (and makes a corresponding adjustment to the related right of use asset) whenever:

  • The lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;

  • The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change due to a change in a floating interest rate, in which case a revised discount rate is used);

  • A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The right of use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are annually reviewed for impairment triggers. If there is an impairment trigger, any impairments will be recognised in the profit or loss accounts in line with the impairment accounting policy for non-financial assets as included on page Impairment of non-financial assets.

Whenever Triodos Bank incurs an obligation for costs to restore a leased asset to the condition required by the terms and conditions of the lease, a provision is recognised.

Right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that Triodos Bank expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The periodic impact in the profit or loss accounts are the depreciation charges on the right of use assets and the interest charges on the lease liability.

Triodos Bank elected to use the recognition exemption for lease contracts that, at the commencement date, have a lease term of 12 months or less (‘short term leases’), and lease contracts for which the underlying asset is of low value (‘low value assets’). Payments associated with short term leases and leases of low value assets are recognised on a straight line basis as an expense in the consolidated statement of profit or loss.

As a lessor

Triodos Bank enters into lease agreements as a lessor with respect to some of its office space.

Leases for which Triodos Bank is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Triodos Bank does not act as a lessor for any finance leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

When a contract includes lease and non-lease components, Triodos Bank allocates the consideration under the contract to each component.

Judgement and estimate

The lease liabilities are initially measured at the present value of the future lease payments, discounted at the lessee's incremental borrowing rate (IBR) given that the interest rate implicit in the lease cannot be readily determined. The IBR is the rate of interest that Triodos Bank would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what Triodos Bank ‘would have to pay’, which requires estimation and inherently involves significant judgement when no observable rates are available. Triodos Bank estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific adjustments (such as Triodos Bank's stand-alone credit rating).

Non-trading derivatives

Additional hedge accounting disclosures are part of the financial risk management paragraph, please see note Non-trading derivatives and hedge accounting for additional information.

As part of the interest rate risk management, Triodos Bank entered into interest rate swaps to hedge the interest risk on fixed interest rate loans. The fair value of the interest rate swaps with a positive value at the end of the year is represented on the asset side of the balance sheet and the interest rate swaps with a negative value on the liability side. Breakdown of derivatives by remaining term to maturity and fair value is presented below:

Non-trading derivative assets

2022

Notional amount

Fair value

Amounts in thousands of EUR

Total

<= 1 year

> 1 year <= 5 years

> 5 years

Over-the-Counter (OTC) currency contracts:

 

 

 

 

 

Forwards

227,721

227,721

-

-

5,011

Non deliverable forwards

1,418

1,418

-

-

375

 

 

 

 

 

 

OTC interest rate contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

1,415,600

36,000

84,600

1,295,000

290,310

Total derivatives

1,644,739

265,139

84,600

1,295,000

295,696

Average IRS rates:

 

0.27%

0.34%

0.74%

 

2021

Notional amount

Fair value

Amounts in thousands of EUR

Total

<= 1 year

> 1 year <= 5 years

> 5 years

OTC currency contracts:

 

 

 

 

 

Forwards

5,277

-

5,277

-

554

Non deliverable forwards

4,453

2,969

1,484

-

1,113

 

 

 

 

 

 

OTC interest rate contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

868,500

-

7,500

861,000

17,983

Total derivatives

878,230

2,969

14,261

861,000

19,650

Average IRS rates:

 

n/a

-0.40%

0.16%

 

Triodos Bank applies macro fair value hedge accounting, in which the interest rate swaps (IRS) are the hedging instruments. Triodos Bank only enters into these contracts for the purpose of hedging the interest rate risk, no derivatives are used for trading purposes. In 2022, Triodos Bank entered into additional interest rate swaps to further mitigate the interest rate risk. See page Market risk management for further information on interest rate risk for Triodos Bank.

In order to hedge the currency risk of the investment funds of Triodos Investment Management, Triodos Bank entered into non-deliverable currency contracts with third parties and entered into back-to-back non-deliverable currency contracts with the investment funds, including a small margin. As the investment funds are not consolidated, the notional amounts of the long and short position are the same. In 2017, Triodos Bank stopped entering into new currency contract with for the investment funds due to new regulation.

Non-trading derivative liabilities

2022

Notional amount

Fair value

Amounts in thousands of EUR

Total

<= 1 year

> 1 year <= 5 years

> 5 years

OTC currency contracts:

 

 

 

 

 

Forwards

5,605

5,605

-

-

879

Non deliverable forwards

1,418

1,418

-

-

370

 

 

 

 

 

 

OTC interest rate contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

-

-

-

-

-

Total derivatives

7,023

7,023

-

-

1,249

Average IRS rates:

 

n/a

n/a

n/a

 

2021

Notional amount

Fair value

Amounts in thousands of EUR

Total

<= 1 year

> 1 year <= 5 years

> 5 years

OTC currency contracts:

 

 

 

 

 

Forwards

226,720

221,443

5,277

-

3,113

Non deliverable forwards

4,453

2,969

1,484

-

1,077

 

 

 

 

 

 

OTC interest rate contracts:

 

 

 

 

 

Interest rate swaps (hedge accounting only)

233,900

124,000

102,700

7,200

2,757

Total derivatives

465,073

348,412

109,461

7,200

6,947

Average IRS rates:

 

0.12%

0.46%

0.47%

 

The forward currency contracts relates mainly to GBP contracts that Triodos Bank entered for a notional amount of EUR 222.1 million (2021: EUR 221.4 million) for hedging the currency risk of the UK subsidiary equity participation of Triodos Bank. The forward currency contracts relating to GBP contracts are classified in 2022 as a non-trading derivative asset because the fair value is positive. These contracts are classified in 2021 as a non-trading derivative liability because the fair value was negative in that year.

Accounting policy

Derivative financial instruments, consisting of foreign currency forward contracts and interest rate swaps, are initially recognised at fair value, with subsequent fair value movements recognised in profit or loss. Triodos Bank uses interest rate swaps and foreign exchange forwards as derivatives for hedging purposes. Fair values of interest rate swaps are determined by discounted cash flows against prevailing market interest rates. Foreign exchange forwards fair values are determined by the movement of the foreign exchange rate. Changes in the fair value are included in the profit or loss account.

The effective portion of fair value movements of those derivatives in a cash flow or net investment hedge relationship are recognised in OCI and recycled to the profit or loss when the related result on the hedged item is recognised in profit or loss.

Hedge Accounting

Triodos Bank elected, as a policy choice permitted by IFRS 9, to continue to apply hedge accounting in accordance with IAS 39. Triodos Bank designates certain derivatives held for risk management as well as certain non-trading derivative financial instruments as hedging instruments in qualifying hedging relationships. On initial designation of the hedge, Triodos Bank formally documents the relationship between the hedging instruments and hedged items, including the risk management objective and strategy in undertaking the hedge, together with the method that will be used to assess the effectiveness of the hedging relationship. Triodos Bank makes an assessment, both on inception of the hedging relationship and on an ongoing basis, of whether the hedging instruments are expected to be highly effective in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated, and whether the actual results of each hedge are within the effective range. A hedge is regarded as highly effective if the changes in fair value or cash flows attributable to the hedged risk of the hedging instrument and the hedged item during the period for which the hedge is designated, are expected to offset in a range of 80% to 125%.

Triodos Bank uses derivatives (principally interest rate swaps) for economic hedging purposes in the management of its asset and liability portfolios. The objective of economic hedging is to enter into positions with an opposite risk profile to an identified exposure to reduce that risk exposure. In addition to economic hedging, Triodos Bank also applies hedge accounting. The hedge accounting types are discussed below. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to profit or loss over the period to maturity using a recalculated effective interest rate. If the hedged item is derecognised, any remaining adjustment to the carrying amount is recognised as part of the derecognition gain/loss.

Fair value hedges

Triodos Bank applies macro fair value hedge accounting to the hedges that are in place to hedge the changes in fair value due to changes in interest rates of its longer term fixed-rate financial assets. Under this hedging strategy, interest rates swaps are designated as hedging instruments, which are in an economic hedge relationship with a portfolio of loans and mortgages as hedged item to cover the fair value risk due to changes interest rate. For additional information on the hedge relationship, refer to Non-trading derivatives and hedge accounting .

Net investment hedge of a foreign operation

Triodos Bank hedges its net investment in Triodos Bank UK Limited, its subsidiary in the United Kingdom. The hedged risk is the foreign currency exposure arising from the net investment. Triodos Bank designates the hedged risk as the risk of the GBP spot changes against the Euro, in order to reduce fluctuations in the value of the net investment in its subsidiaries due to movements in the GBP exchange rate. Triodos Bank makes use of foreign exchange forward contracts to hedge this risk. The derivatives are recorded at fair value on the balance sheet.

The fair value movements of these contracts are determined by the changes in spot foreign exchange rate, and the basis spread. The basis spread is the difference between the spot and forward rate in the contract. Triodos Bank elects to use the cost of hedging method for changes in the basis spread and records these in a separate component within equity. The spot rate changes are, together with the changes in the hedge risk, recognised in the translation reserve through OCI. Any ineffective portion of the changes in the fair value of the derivative is recognised immediately in profit or loss. The amount recognised in OCI is fully or partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal of the foreign operation, respectively.

Critical judgement and estimates

Triodos Bank determines the fair values of those financial instruments measured at FVOCI and FVTPL periodically which is a critical estimate. For more details on the measurement of fair values refer to Fair value of financial instruments .

Other assets

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

Amounts in thousands of EUR

2022

2021

Receivable regarding the deposit guarantee scheme

2,700

2,700

Other prepayments and accrued income

36,782

35,558

Other

16,759

17,226

Allowance for ECL

-488

-1,119

Balance sheet value as at 31 December

55,753

54,365

The other assets fall due within one year for an amount of EUR 40 million (2021: EUR 46 million).

Accounting policy

Other assets are recognised initially at fair value and subsequently measured at amortised cost.

Critical judgement and estimates

Triodos Bank determines the ECL which is a critical estimate and includes critical judgements. For more details on the critical judgement and estimate of ECL, refer to Financial instruments .

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:

Amounts in thousands of EUR

2022

2021

Repossessed assets

4,750

6,544

Own property held for sale

-

6,135

Shares in investment funds held for sale

832

-

Balance sheet value as at 31 December

5,582

12,679

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 sale of own property held for sale has been finalised in May 2022.

Triodos Investment Management has provided seed capital to a new investment fund in March 2022 to improve the product offering and with the intention to exit within a year.

Amounts in thousands of EUR

2022

2021

Cumulative impairments on assets held for sale

-928

-762

Total for the year

-928

-762

Accounting policy

A non-current asset is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. The condition for such classification is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition.

Non-current assets classified as held for sale are initially measured as the lower of;

  • Carrying amount; and

  • Fair value less costs to sell.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.