Triodos Bank Annual Figures 2013
Steady growth of funds, customers and lending. Strong long-term perspectives
28-02-2014 | Zeist
• 22% balance sheet growth in 2013
• Total assets under management increase to EUR 9.6 billion
• Equity increased by 16%
• Net profit up by 14% in 2013
• Core Tier 1 capital ratio 17.8%
• 80,000 new customers. 517,000 in total
Triodos Bank’s balance sheet total grew in 2013 by 22% to EUR 6.4 billion thanks to a steady growth of the funds entrusted and a successful share issue.
Total assets under management, comprised of Triodos Bank, Triodos Investment Funds and Triodos Private Banking grew by 20% to EUR 9.6 billion.
Triodos Bank’s net profit of EUR 25.7 million, represents an increase of 14% compared to 2012.
Customer numbers were up by 18%. By the end of 2013 Triodos Bank had passed the important milestone of 500,000 customers.
Triodos Bank CEO, Peter Blom: “With consistent, balanced growth in recent years Triodos Bank has become a medium size European bank. There is clearly a demand for a bank like Triodos Bank.
Triodos Bank continued to build on its position as a resilient financial institution in 2013. Its equity increased in 2013 by 16%, or EUR 89 million. This increase includes net new capital of EUR 68 million. The new capital comes from thousands of individuals, many of whom have become co-owners of Triodos Bank for the first time. The number of depository receipt holders increased from 26,000 to over 31,000 by the end of 2013. Triodos Bank’s solid financial position is built on a business model that is focused on the real, sustainable economy.
Peter Blom: “Long-term finance is a key component of a more sustainable economy. Financial markets’ propensity to focus on the short term drains resources away from the real economy into an abstract financial system. By adopting a long-term approach, banks will consider longer-term systemic perspectives in a much stronger way. This will lead to more sustainable business models which take long-term effects on the environment and the community into account.”
The new capital has helped Triodos Bank to increase the core tier 1 ratio to 17.8%, at the end of 2013. Triodos Bank aims for a regulatory solvency of at least 14%. This new capital provides a solid foundation for the development of the bank and the growth of the lending to sustainable sectors. Triodos Bank complies fully with the capital and liquidity requirements, known as Basel III. The leverage ratio of Triodos Bank at the end of 2013 was 8.7%.
Lending rose in 2013 by 8%. Expected growth was between 15 and 20%. The main reason for this decline is a substantial reduction in larger loans to Dutch municipalities, primarily because of liquidity management. These investments are included in the loan portfolio in accordance with regulations related to financial reporting. As a result of liquidity management considerations, these short-term loans were converted to other investments that are not included in the loan portfolio. Without this change the loan portfolio would have grown by 14%.
The quality of the loan book remained satisfactory overall, notwithstanding the economic recession. This and a continuing focus on diversifying the loan portfolio, led to a decline in the overall loan loss provision to 0.49% of the average loan book (2012: 0.67%). This is closer to Triodos Bank’s long-term internal benchmark for provisions of 0.25%.
Prospects for 2014
Peter Blom: “In 2014 we will focus on the quality and diversification of our loan book. We will concentrate on loans that reflect Triodos Bank’s efforts to finance front-runners in their fields; the entrepreneurs developing the sustainable industries of the future. Delivering this effectively will require extra effort and resources in 2014.”
Triodos Bank expects to grow more modestly in 2014 by 5 to 15% while maintaining, or slightly improving, its net profit. Triodos Bank’s results will be materially affected by a special one-off tax levied by the Dutch government as a contribution to the rescue of the Dutch SNS Bank.
All branches are expected to broaden their customer base. The number of customers is expected to grow by between 10 and 15%.
At the end of 2013 Triodos Investment Management managed 19 investment funds for retail and institutional investors, totaling EUR 2.5 billion in assets under management. Total growth of the investment funds was EUR 317 million, representing an increase of 15%. We consider this a very good outcome given that the current market conditions and government austerity measures in Europe limited investment inflows.
Triodos Investment Funds invest in sustainable sectors such as microfinance, organic agriculture, cultural projects, renewable energy, sustainable real estate, and stock-market listed companies who are screened for their sustainable performance (SRI).
Early 2014 Triodos Investment Management launched Triodos Organic Growth Fund. This long-term evergreen fund is the first impact investment fund of its kind and provides equity to leading organic food and sustainable consumer product companies across Europe.
2013 figures at a glance
• Triodos Bank balance sheet: EUR 6.4 billion (22% growth)
• Triodos Investment Funds: EUR 2.5 billion (15% growth)
• Private Banking assets under management: are now EUR 685 million (23% growth)
• Number of customers: 517,000 (18% growth)
• Lending: EUR 3.5 billion (8% growth)
• Triodos Bank net profit: EUR 25.7 million (14% growth)
• Core Tier 1-ratio: 17.8% (2012: 15.9%)
• Number of co-workers: 911 (16% growth)
About Triodos Bank
Founded in 1980, Triodos Bank has become a reference point for sustainable banking globally.
Triodos Bank is an independent bank that promotes sustainable and transparent banking. It does not see any conflict between a focus on people and the planet and a good financial return. Instead it believes that they reinforce each other in the long-term.
Triodos Bank has branches in The Netherlands, Belgium, UK, Spain and Germany. It is a global authority in the field of microfinance in developing countries, Central Asia and Eastern Europe.
Triodos Bank co-founded the Global Alliance for Banking on Values , a network of 25 sustainable banks. Together these banks want to grow sustainable banking and its impact substantially.
In 2009 Triodos Bank was voted the most sustainable bank of the year, because of the leadership and innovation Triodos Bank has shown for the past 30 years in integrating sustainability in all its activities. An international jury, appointed by the Financial Times and the IFC - a member of the World Bank – voted for the winners at the FT Sustainable Banking Awards.
Triodos Bank N.V. has a full banking licence and is registered with The Nederlandsche Bank N.V. (the Dutch central bank) and The Netherlands Authority for the Financial Markets.
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