Provisions

In May 2022, Triodos Bank announced its intention to optimise its resources and deliver increased impact for the bank’s customers and investors. This restructuring will help the bank to realise cost savings of approximately EUR 11-12 million. The restructuring is aiming to optimise the Bank through integration and enables Triodos Bank to reduce 130 to 150 positions across the banking activities by the end of 2024. The reduction of positions will be achieved through natural attrition, redeployment and redundancies. To enable this restructuring, Triodos Bank has recorded a restructuring provision of EUR 5.0 million, representing the cost related to redundancies. Any costs related to ongoing business such as retraining or relocating employees and consulting fees are not provided for.

In 2021, a provision of EUR 2.3 million was recorded in relation to a sale in 2019 of an investment within a managed investment fund that had been marked, in retrospect, for a fiscal claim, in which case part of the received management fee might need to be repaid. This provision has been released in 2022 due to developments that have made the probability of future payments highly unlikely.

An amount of EUR 5.1 million (2021: EUR 3.2 million) can be classified as shorter than one year.

The movement of the other provisions is as follows:

Loan commitments issued result in issued loans when offers are signed or when commitments are used. The following table shows the movements within the ECL on loan commitments issued.