Triodos Bank’s figures reveal strong opportunity for sustainable borrowing and investment
- 33% increase in lending to sustainable businesses
- Equity increase of EUR 89 million to support further growth
- Net profit up 51%
Triodos Bank has continued to increase its impact in 2011, maintaining a pattern of long-term sustainable growth, and providing compelling evidence that sustainable banking offers a credible new approach for the banking industry. In particular, lending to sustainable enterprises has increased considerably, creating opportunities for large numbers of entrepreneurs across Europe.
Lending to sustainable businesses and projects rose by 33%, well above ambitious targets.
Total assets under management, comprised of Triodos Bank, Triodos Investment Funds and Triodos Private Banking grew by 21% to EUR 6.8 billion.
Triodos Bank’s balance sheet total increased by 23% to EUR 4.3 billion.
Triodos Bank’s net profit is EUR 17.3 million, an increase of 51% compared to 2010.
Customer numbers were up by 24%, to more than 355,000.
The growth of the equity of EUR 89 million includes the result of a successful share issue (EUR 75 million). The money comes from thousands of individuals who want to co-own a bank that exclusively finances sustainable enterprise. This type of investment, which maintains positive growth, demonstrates Triodos Bank’s continuing resilience to the financial crisis.
The new capital provides a solid foundation for future growth, and will be used to support lending that benefits people, the environment and culture.
Triodos Bank Chief Executive Peter Blom: “The success of the issue – which raised new capital in The Netherlands, Belgium and Spain - shows just how far the financial crisis has influenced popular opinion. Increasingly borrowers, savers and investors recognise that a new way of banking, which embraces transparency and sustainability, is not just possible, but essential. Our financial strength comes because we are sustainable, not despite this focus.”
Triodos Bank’s equity grew by 25% to EUR 451 million in 2011. By developing its already strong capital base, Triodos Bank is building a solid foundation for future growth. Its capital ratio (Core Tier 1 ratio), an important measure of a bank’s solvency, is 14.0% (2010: 13.8%). Triodos Bank already complies with both new capital and liquidity requirements, as recently published by the Basel Committee, and better known as Basel III. The regulations are required to be fully implemented by 2019. Triodos Bank’s capital allows it to continue its positive growth, increasing its impact and lending to more sustainable businesses.
The credit portfolio continues to be of good quality. However Triodos Bank has increased the addition to the provision for bad debts to EUR 15.8 million (2010: EUR 9.8 million) in response to issues in some sectors – most notably issues with renewable energy from biomass projects which continued to impact the loan portfolio in 2011.
The biomass industry is young, its technology relatively immature, and it has struggled to cope with volatile market conditions.
Triodos Investment Management is responsible for 18 funds, totaling EUR 2.1 billion assets under management. Total growth of the investment funds was EUR 293 million in 2011, up 17%, compared to 10% in 2010. The impact of the phasing out of tax benefits for the Triodos Groenfonds and Triodos Cultuurfonds was responsible, in part, for an outflow of investment.
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.
Impact in a number of sectors
100% of Triodos Bank finance is used sustainably. As such, its most important ambition in 2011 was to grow the loan portfolio to sustainable enterprises in Europe that improve quality of life.
By the end of 2011 Triodos Bank, its climate and energy funds under management, financed over 350 renewable energy projects across Europe producing the equivalent of the electricity consumption of around 1.5 million European households, up from 1.2 million in 2010.
Impact investing in emerging markets, was delivered through specialised microfinance funds providing finance to 96 emerging and well-established microfinance institutions in 43 countries. Triodos held equity stakes in 19 leading and innovative microfinance institutions. The microfinance institutions in its portfolio reached 7.9 million loan clients - 66% of whom are women and 46% of whom live in rural areas.
2011 figures at a glance
- Triodos Bank balance sheet: EUR 4.3 billion (23% growth)
- Triodos Investment Funds: EUR 2.1 billion (17% growth)
- Number of customers: 355,000 (24% growth)
- Private Banking assets under management: are now EUR 436 million (22% growth)
- Sustainable lending: EUR 2.8 billion (33% growth)
- Triodos Bank net profit: EUR 17.3 million (51% growth)
- Capital ratio (or Core Tier 1-ratio): 14.0% (2010: 13.8%)
- Number of co-workers: 720 (13% growth)
Prospects for 2012
Triodos Bank will continue to actively contribute to a more sustainable society, responding to social, environmental and cultural challenges over the short, medium and long-term. It will extend the idea of a more conscious use of money in society through the banking system, acting as an effective reference point for sustainable banking. Excluding unforeseen circumstances, Triodos Bank expects to increase its profits in 2012.
Triodos Bank is an independent bank that promotes sustainable and transparent banking. The Bank, which was founded in 1980, does not see any conflict between a focus on people and the earth and a good financial return. Instead it is convinced that they will reinforce each other in the long-term.
Triodos Bank was involved from the very beginning in fiscal promotion schemes for green, social-ethical and cultural projects in the Netherlands. Triodos Bank launched the first green fund and culture fund in the Netherlands and is a global authority on microfinance in developing countries, and emerging economies in Central Asia and Eastern Europe.
Through its activities Triodos Bank wants to boost the market for sustainable banking. It has branches in the Netherlands , Belgium , the UK , Spain and Germany .
Global Alliance for Banking on Values
Triodos Bank co-founded the Global Alliance for Banking on Values , a network of fifteen sustainable and successful banks. Together these banks want to grow sustainable banking and its impact substantially.
Sustainable Bank of the Year
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.