"The steps we took in 2025 and early 2026 lay the foundation for a stronger, more resilient Triodos Bank in the years ahead."
2025 was a year in which Triodos Bank's financial results were under pressure, mainly driven by credit losses and related provisions. Yet, for me, the year also marked the beginning of several important developments that will strengthen Triodos Bank structurally in 2026 and beyond.
Despite a challenging external environment, we successfully navigated the transition to a lower‑interest‑rate environment, reflected in stable underlying performance and increasingly disciplined cost management. At the same time, recent legal rulings and the strong acceptance of our DR settlement offer have significantly reduced our DR litigation risks, which is important to strengthen the financial position of the bank. And we have laid the groundwork for improving our operational efficiency and focused our organisational footprint, including the launch of the transformation programme Fit for Impact and the wind‑down of our German activities.
Underlying performance
Our underlying business was stable. One clear reflection of this is the development of our net interest margin. This was achieved through disciplined management of our interest rate position and careful adjustments to the pricing of funds entrusted. These actions helped maintain the strength of our commercial activities despite a shifting interest rate environment.
Additionally, for the first time since at least 2020, the number of co‑workers levelled off. This is an early but tangible sign that our efforts to become a more efficient and focused organisation are beginning to take effect. Together, these developments show that we are gradually reinforcing the foundations of the bank.
Resilience of our balance sheet
Part of strengthening that foundation involves confronting challenges directly. In December, we announced a EUR 60 million provision for expected loan losses in our German fibre optic loan portfolio following a broad market correction in the sector. Slower‑than‑expected commercial rollout, intensified competition and revised business cases across multiple operators required us to reassess expected recoveries and future cash flows. While this provision was a painful decision with a significant impact on the financial results, it was a necessary one. It ensures our credit risk profile accurately reflects today’s operating reality and reinforces the resilience of our balance sheet for the years ahead. Our capital position also strengthened over the year under the new CRR III framework, reinforcing that we remain a well‑capitalised bank.
Strengthening our financial foundations
Achieving our mid-term financial targets is one of the objectives of Fit for Impact, the transformation programme initiated in early 2026. By implementing a planned net reduction of 250–270 FTE by 2028, we anticipate generating annual structural savings of EUR 25–30 million.
At the same time, the listing of the DRs on Euronext Amsterdam has also improved tradability, and the strong 82.4% acceptance rate of our settlement offer has substantially reduced litigation risks. Together, these steps contribute towards resolving challenges related to the DRs.
Another important decision was our intention to wind down our German operations. Although difficult, this step enables us to sharpen our geographical footprint and allocate resources where Triodos Bank can create the greatest impact. By simplifying the organisation and focusing on what we do best, we are not only building a more coherent and effective structure for sustainable growth, but also positioning Triodos Bank to strengthen its financial position in the years ahead.
Looking ahead
The measures we put in place in 2025 and early 2026 form the basis on which we will build the next phase of Triodos Bank’s development. Although 2025 shows a net loss and performance outside our financial target ranges, the steps we have taken reduce risk, simplify the organisation and lower our cost base.
For 2026, we expect Triodos Bank to return to growth in income and achieve a decline in operating expenses compared to 2025. With the introduction of Fit for Impact, we strive to achieve the lower end of our mid-term 70–75% cost to income ratio target and the high end of our mid-term 5–7% return on equity target.
Becoming a more cost‑efficient bank enables us to offer more attractive products, scale with confidence and strengthen our ability to grow our positive impact. Ultimately, that is what matters most at Triodos Bank.
Kees van Kalveen
Chief Financial Officer
