Receivables from credit institutions

Amounts in thousands of EUR

2022

2021

On demand deposits with banks

144,671

119,162

Deposits with banks

126,617

67,612

Interest receivable

199

-44

Allowance for ECL

-2

-1

Balance sheet value as at 31 December

271,485

186,729

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 in 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: 39.2 million). A deposit of EUR 0.0 million (2021: EUR 1.0 million) is subordinated. All other deposits can be freely disposed of.

Claims on customers

Amounts in thousands of EUR

2022

2021

Loans

9,420,296

8,896,871

Allowance for ECL

-39,353

-41,563

Balance sheet value as at 31 December

9,380,943

8,855,308

 

2022

Amounts in thousands of EUR

Gross carrying amount

Allowance for ECL

Carrying amount

Business loans

5,027,637

-35,497

4,992,140

Mortgage lending

4,447,170

-1,414

4,445,756

Short term loans1

60,000

-

60,000

Current accounts and credit cards

154,841

-2,442

152,399

Fair value hedge accounting

-289,691

-

-289,691

Interest receivables

20,339

-

20,339

Balance sheet value as at 31 December

9,420,296

-39,353

9,380,943

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

Business loans

4,955,244

-38,043

4,917,201

Mortgage lending

3,621,128

-1,078

3,620,050

Short term loans1

138,628

-

138,628

Current accounts and credit cards

181,190

-2,442

178,748

Fair value hedge accounting

-14,709

-

-14,709

Interest receivables

15,390

-

15,390

Balance sheet value as at 31 December

8,896,871

-41,563

8,855,308

1

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

Claims on customers classified by residual maturity:

Amounts in thousands of EUR

2022

2021

Payable on demand

156,117

181,837

1 to 3 months

409,918

482,181

3 months to 1 year

837,089

770,856

1 to 5 years

3,227,655

3,104,344

Longer than 5 years

4,750,164

4,316,090

Balance sheet value as at 31 December

9,380,943

8,855,308

The claims on customers includes an amount of EUR 27.8 million (2021: EUR 33.2 million) regarding loans provided to consolidated participating interests.

A breakdown related to received collateral, relevant industries, sectors and per geographic region can be found in the pillar 3 report 2022 which can be found on the website of Triodos Bank.

Bonds and other fixed-income securities

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

Other bonds

1,106,615

925,731

Interest receivable

7,122

7,797

Fair value hedge accounting

350

645

Allowance for ECL

-28

-5

Balance sheet value as at 31 December

1,299,198

1,163,603

The movement in bonds is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

1,163,603

1,146,456

Acquisitions

619,635

238,254

Repayments

-474,029

-211,023

Sale

-

-

Amortisation difference between acquisition price and redemption value

-9,018

-8,932

Exchange rate differences

-

-

Interest receivable movement

-675

-697

Fair value hedge accounting movement

-295

-501

Net movement in allowance for ECL

-23

46

Balance sheet value as at 31 December

1,299,198

1,163,603

Shares and other variable-yield securities

Amounts in thousands of EUR

2022

2021

Participating equity at fair value through profit or loss

102

85

Balance sheet value as at 31 December

102

85

The movement in 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

Participating interests in group companies

The participating interests in group companies relate to the subsidiaries of Triodos Bank, mainly being Triodos Bank UK limited and Triodos Investment Management B.V.

Amounts in thousands of EUR

2022

2021

Investments in credit institutions

221,491

222,140

Other

33,865

25,469

Balance sheet value as at 31 December

255,356

247,609

The movement of the participating interests in group companies is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

247,609

223,810

Acquisitions

-

-

Increase of capital

-

-

Result on participating interests

19,182

15,382

Transfer from or to provision for negative equity of participating interests

-

-

Dividend paid

-

-2,673

Revaluation

-

-

Repayment of capital

-

-2,106

Sale

-

-

Exchange rate result on foreign currency

-11,435

13,196

Balance sheet value as at 31 December

255,356

247,609

Accounting policy

Participating interests are valued based on the equity method. On initial recognition, the investment in the participating interest is recognised at cost. In subsequent periods, the carrying amount of the investment is adjusted for the following:

  • Increase (or decrease) in the value of the investment for Triodos Bank’s share of the participating interest's

  • Net Income (or Net Loss) for the period

  • Decrease in the value of the participating interest for distribution of dividends received from the participating interest, where dividends received from the participating interest are not recorded in the Profit & Loss account

  • Increase (or decrease) in the value of the investment for Triodos Bank’ share of the participating interest's Other Comprehensive Income for the period.

For those items not included in the Notes to the parent company financial statements, please see the Notes to the consolidated financial statements.

Other participations

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

189

5,462

Associates at equity value

5,226

-

Balance sheet value as at 31 December

41,405

35,605

This relates to equity participations that are held long-term for business operation purposes. The statement of equity participations in accordance with Section 2:379 of The Netherlands Civil Code is included under the accounting principles for consolidation in the Notes to the consolidated Annual Accounts.

The movement of the other 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

5,462

4,460

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

189

5,462

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.

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

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

-

-

Acquisitions

5,2721

-

Revaluation

-46

-

Sales

-

-

Balance sheet value as at 31 December

5,226

-

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.

Intangible assets

Amounts in thousands of EUR

2022

2021

Research and development costs

48,151

44,746

Concessions, licenses and intellectual property

1,006

1,196

Balance sheet value as at 31 December

49,157

45,942

Research and development costs

The research and development costs relate to the development costs for the banking system. The movement is as follows:

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

77,429

65,633

Cumulative amortisation as at 1 January

-32,683

-23,794

Balance sheet value as at 1 January

44,746

41,839

Internal development

16,295

13,830

Amortisation

-12,890

-10,605

Impairments

-

-318

Balance sheet value as at 31 December

48,151

44,746

 

 

 

Purchase value as at 31 December

94,656

77,429

Cumulative amortisation as at 31 December

-46,505

-32,683

Balance sheet value as at 31 December

48,151

44,746

Concessions, licences and intellectual property

Concessions, licenses and intellectual property relates to computer 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

3,330

3,191

Cumulative amortisation as at 1 January

-2,134

-1,909

Balance sheet value as at 1 January

1,196

1,282

Purchases

372

542

Amortisation

-562

-613

Impairments

-

-15

Balance sheet value as at 31 December

1,006

1,196

 

 

 

Purchase value as at 31 December

3,704

3,330

Cumulative amortisation as at 31 December

-2,698

-2,134

Balance sheet value as at 31 December

1,006

1,196

Property and equipment

Amounts in thousands of EUR

2022

2021

Property for own use

57,515

59,147

Equipment

18,048

21,301

Balance sheet value as at 31 December

75,563

80,448

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

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

65,625

65,413

Cumulative revaluation as at 1 January

-1,595

-1,595

Cumulative depreciation as at 1 January

-4,883

-3,260

Balance sheet value as at 1 January

59,147

60,558

Purchases

-

212

Depreciation

-1,632

-1,623

Impairments

-

-

Balance sheet value as at 31 December

57,515

59,147

 

 

 

Purchase value as at 31 December

64,019

65,625

Cumulative revaluation as at 31 December

-

-1,595

Cumulative depreciation as at 31 December

-6,504

-4,883

Balance sheet value as at 31 December

57,515

59,147

The movement in equipment is as follows:

Amounts in thousands of EUR

2022

2021

Purchase value as at 1 January

52,957

52,263

Cumulative depreciation as at 1 January

-31,656

-25,111

Balance sheet value as at 1 January

21,301

27,152

Purchases

2,301

1,976

Sales

-4

-261

Depreciation

-5,694

-6,188

Impairments

144

-1,378

Balance sheet value as at 31 December

18,048

21,301

 

 

 

Purchase value as at 31 December

52,315

52,957

Cumulative depreciation as at 31 December

-34,267

-31,656

Balance sheet value as at 31 December

18,048

21,301

Fully depreciated equipment with a total purchase value of EUR 2.4 million (2021: EUR 1.0 million) has been disposed of.

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 letting 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

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 at 1 January

13,693

1,122

381

15,196

16,062

1,137

449

17,648

Depreciation

-2,288

-633

-55

-2,976

-2,370

-651

-68

-3,089

Additions

1,594

348

318

2,260

173

677

-

850

Disposals

-2,187

-

-220

-2,407

-172

-41

-

-213

Balance sheet value as at 31 December

10,812

837

424

12,073

13,693

1,122

381

15,196

Lease liabilities

 

2022

2021

Amounts in thousands of EUR

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Less than one year

2,091

695

56

2,842

2,222

824

72

3,118

More than one year

9,272

149

372

9,793

12,124

301

315

12,740

Balance sheet value as at 31 December

11,363

844

428

12,635

14,346

1,125

387

15,858

Amounts in thousands of EUR

2022

2021

Maturity analysis – contractual undiscounted cash flows

Property

Vehicles

Other

Total

Property

Vehicles

Other

Total

Less than one year

2,272

452

56

2,780

2,181

519

72

2,772

One to five years

5,202

390

372

5,964

5,115

596

205

5,916

More than five years

4,485

-

-

4,485

7,154

-

110

7,264

Undiscounted lease liabilities at 31 December

11,959

842

428

13,229

14,450

1,115

387

15,952

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

38,005

43,775

Allowance for ECL

-488

-1,119

Balance sheet value as at 31 December

40,217

45,356

Of the other assets, EUR 14.1 million has a maturity of less than one year (2021: EUR 19.6 million). Due to the nature and the maturity of the other assets, the fair value approximates the carrying value.

The other assets includes an amount of EUR 2.6 million (2021: EUR 1.3 million) regarding receivables from consolidated participating interests.

Accrued assets

Of the accrued assets, EUR 10.2 million has a maturity of less than one year (2021: EUR 12.4 million). Due to the nature and the maturity of the accrued assets, the fair value approximates the carrying value.

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

Balance sheet value as at 31 December

4,750

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.

Amounts owed to credit institutions

Amounts in thousands of EUR

2022

2021

Deposits from banks

337,072

73,919

Deposits from Central Banks (TLTRO)

-

1,550,000

Interest payable

15

-15,614

Balance sheet value as at 31 December

337,087

1,608,305

Amounts owed to customers

Amounts in thousands of EUR

2022

2021

Business clients:

 

 

Saving accounts

1,215,835

1,235,538

Fixed term deposits

151,551

101,866

Current accounts

2,862,805

2,424,143

 

 

 

Retail clients:

 

 

Saving accounts

5,390,139

5,332,991

Fixed term deposits

312,981

373,985

Current accounts

2,049,225

1,916,959

 

 

 

Interest payable

1,716

718

Balance sheet value as at 31 December

11,984,252

11,386,200

The amounts owed to customers include an amount of EUR 23.6 million (2021: EUR 12.2 million) for deposits from consolidated participating interests.

Amounts owed to customers classified by residual maturity:

 

2022

2021

Amounts in thousands of EUR

Business clients

Retail clients

Total

Business clients

Retail clients

Total

Payable on demand

4,102,632

7,419,638

11,522,270

3,690,041

7,224,401

10,914,442

1 to 3 months

71,647

63,886

135,533

8,101

73,215

81,316

3 months to 1 year

37,566

157,774

195,340

33,422

173,778

207,200

1 to 5 years

16,344

88,878

105,222

26,240

123,229

149,469

Longer than 5 years

2,608

23,279

25,887

3,980

29,793

33,773

Balance sheet value as at 31 December

4,230,797

7,753,455

11,984,252

3,761,784

7,624,416

11,386,200

Other debts

The other debts fall due within one year for an amount of EUR 19.0 million (2021: EUR 15.2 million). Due to the nature and the maturity of the other debts, the fair value approximates the carrying value.

The other debts includes an amount of EUR 0.0 million (2021: EUR 0.0 million) regarding payables to consolidated participating interests.

Accrued liabilities

The accrued liabilities fall due within one year for an amount of EUR 53.7 million (2021: EUR 34.9 million). Due to the nature and the maturity of the accrued liabilities, the fair value approximates the carrying value.

Provisions

Amounts in thousands of EUR

2022

2021

ECL on financial guarantee contracts issued

112

20

ECL on loan commitments issued

927

1,055

Other provisions

5,566

1,062

Balance sheet value as at 31 December

6,605

2,137

In May 2022 Triodos Bank announced its intention to optimise its resources and deliver increased impact for the bank’s customers and investors. This restructure will help the bank to realise cost savings of approximately EUR 11-12 million. The restructuring is aiming to optimise the Bank through integration. To enable this restructuring Triodos Bank has recorded a restructuring provision of EUR 4.3 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. Further details over the restructuring plan can be found under note 16 Provisions, within the consolidated accounts of Triodos Bank.

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 derecognised in 2022 due to developments that have made the probability of future payments highly unlikely.

The movement of the other provisions is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

1,062

1,501

Addition

5,482

511

Withdrawal

-112

-182

Release

-866

-768

Exchange rate differences

-

-

Balance sheet value as at 31 December

5,566

1,062

Subordinated liabilities

Amounts in thousands of EUR

2022

2021

Subordinated Tier 2 instruments:

 

 

Subordinated Green Bond (institutional investors)

248,336

247,930

Interest payable

5,073

866

Balance sheet value as at 31 December

253,409

248,796

In 2021 Triodos Bank realised a successful placement of a subordinated Green Bond. The Green Bond has a nominal value of EUR 250 million, a tenor of 10.25 years, and a coupon of 2.25% for the first five and a quarter years after which there is an option to early redeem the bond. If the bond is not early redeemed, the interest rate is reset to maturity at 2.4% above the annual Euro mid swap rate. The Green Bond has been placed below nominal value at 99.497%. The placement of the Green Bond results in an increase of the Tier 2 Capital which is a diversification of the Total Capital of Triodos Bank.

The Green Bond has been issued taking into account the ICMA Green Bond Principles, Climate Bond Initiative Standards and the EU Taxonomy recommendations. It has been assessed by a Second Party Opinion as best market practice on all components. This confirms Triodos Bank’s ambition to ‘change finance, by financing change’ and underlines its position as frontrunner in sustainable banking.

The movement of the subordinated Green Bond issued is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

248,796

-

Issuance

-

247,868

Amortisation

406

62

Interest payable

4,207

866

Balance sheet value as at 31 December

253,409

248,796

Equity

Share capital

The authorised capital totals to an amount of EUR 1.5 billion and is divided into 30 million ordinary shares, each with a nominal value of EUR 50. At year-end, there were 14,467,056 ordinary shares (2021: 14,467,056 shares), each of EUR 50, issued to and fully paid up by Stichting Administratiekantoor Aandelen Triodos Bank. As at the same date, Stichting Administratiekantoor Aandelen Triodos Bank had also issued 14,467,056 depository receipts (2021: 14,467,056 depository receipts), each with a nominal value of EUR 50.

The purchasing and reissuing of depository receipts for own shares is charged or credited respectively to the Other reserves. Any balance remaining after the re-issuing of all own depository receipts purchased shall be placed at the disposal of the Annual General Meeting.

The movement in the number of shares is as follows:

Amounts in thousands of EUR

2022

2021

Number of shares as at 1 January

14,467,056

14,467,056

Increase of share capital

-

-

Number of shares as at 31 December

14,467,056

14,467,056

Share premium reserve

This item includes the share premium reserve, which is composed of deposits that exceed the nominal capital, after deduction of capital transfer tax. The full balance of the share premium reserve has been recognised as such for tax purposes.

Statutory reserve

The statutory reserve is a regulatory reserve for in-house developed intangible assets and is not available for distribution to shareholders.

Amounts in thousands of EUR

2022

2021

Development costs

49,568

46,431

Balance sheet value as at 31 December

49,568

46,431

The movement is as follows:

Amounts in thousands of EUR

2022

2021

Balance sheet value as at 1 January

46,431

43,806

Transfer of retained earnings

3,137

2,625

Balance sheet value as at 31 December

49,568

46,431

Reatined earnings

The movement in retained earnings includes purchasing of own depository receipts. At year-end 2022, Triodos Bank had purchased 250,634 own depository receipts amounting to EUR 21,556 thousand (2021: 250,634 amounting to EUR 21,556 thousand).

Contingent liabilities

This item relates to credit-substitute guarantees and non-credit-substitute guarantees that are partly secured by blocked accounts for the same amount.

Amounts in thousands of EUR

2022

2021

Credit substitute guarantees

25,295

35,929

Non-credit substitute guarantees

40,848

53,113

Total contingent liabilities

66,143

89,042

Credit substitute guarantees are guarantees to customers for loans provided to these customers by other banks. Non-credit substitute guarantees are guarantees to customers for all other obligations of these customers to third parties. For example:

  • Obligations to purchase sustainable goods, such as wind turbines.

  • Obligations to decommission equipment or reinstate property (mostly related to project finance provided by Triodos Bank).

During 2020, Triodos Bank has provided a guarantee with a maximum of EUR 20 million to Triodos Investment Management relating to a transaction that was made on behalf of an investment fund managed by Triodos Investment Management. Triodos Bank receives a fee of 0.1% per annum over the maximum guarantee.

The decrease of the credit substitute guarantees is mainly due to the conversion, by a client, of a large credit substitute guarantee into a loan agreement with Triodos Bank.

The decrease of the non-credit substitute guarantees is mainly due to the termination of a few large bank guarantees.

Contingent liabilities - Legal proceedings

Triodos Bank is involved in a number of legal proceedings. Management assesses the outcome of litigation matters, and takes provisions when expected losses with respect to such matters are more likely than not. Provisions are not recognised for matters against Triodos Bank for which an expected outflow of resources cannot be reliably estimated or that are not more likely than not to lead to an outflow of resources. Therefore, per year end Triodos Bank has a contingent liability due to legal proceedings in relation to Depository Receipts. For more information on the contingent liavility, refer to 19 Contingent liabilities .

Irrevocable facilities

These relate to the total liabilities in respect of irrevocable undertakings, which may lead to a further loan.

Amounts in thousands of EUR

2022

2021

Undrawn debit limits on current accounts and credit cards

362,338

370,066

Accepted loans not yet paid out

1,274,781

1,430,467

Valid loan offers not yet accepted

74,393

127,829

Other facilities

1,037

1,220

Total irrevocable facilities

1,712,549

1,929,582