Notes to the parent company balance sheet

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 classified by residual maturity:

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.

The movement in bonds is as follows:

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

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.

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

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:

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

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

Research and development costs

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

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:

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

The movement in equipment is as follows:

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

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:

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

Lease liabilities

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

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.

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.

The balance sheet value of the assets held-for-sale as at 31 December can be broken down as follows:

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.

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:

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.

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.

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:

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:

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:

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.

The movement is as follows:

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).

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

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 .

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