• Better leverage of scale across the markets
• A reduction of up to 150 jobs in 2024 is anticipated
• Savings of EUR 11-12 mln on annual basis
• Intention to take a restructuring provision of EUR 6 mln
Jeroen Rijpkema, Chief Executive Officer of Triodos Bank:
“Triodos Bank started as a small bank with the mission to use money for positive change. In the past 42 years, we have grown into a medium-sized bank active in five European countries. While our mission to create positive impact remained unchanged, the financial landscape has changed and requires us to evolve with it.
To remain a frontrunner in sustainable finance, we need to improve our cost-to-income ratio and return on equity. Adjusting our business and operating model by leveraging our scale across the various countries will enable us to achieve this.”
Today’s announcement is a further step towards achieving the targets Triodos Bank shared at the Extraordinary General Meeting on 28 September 2021: further improving its cost-to-income ratio to 75-70% and improving the return on equity to a range of 4-6% by 2025.
The envisaged changes will facilitate better alignment of activities, deeper integration of processes and simplified governance across the group to support further growth of our activities in the Netherlands, Belgium, Germany, Spain, and the United Kingdom.
This restructure will help the bank to realise cost savings of circa EUR 11-12 million. It is anticipated that the changes will result in a reduction of 130 to 150 jobs across the banking activities by the end of 2024. The reduction of jobs will be achieved through natural attrition, redeployment and redundancies. To enable this restructuring Triodos Bank intends to take a restructuring provision of EUR 6 mln. Consultations with labour unions and the Works Council about a social plan have started.
Dependent on the advice of the Works Council, Triodos Bank expects to be able to start with implementing the intended changes after summer this year.