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Triodos Bank half year figures 2014
- 6% balance sheet growth
- Total assets under management increase to EUR 10 billion
- Common Equity Tier 1 Ratio 18.3%
- Net profit EUR 11.5 million
- 4% growth in lending to sustainable businesses
- 33,000 new customers. 550,000 in total
Zeist, 28 August 2014During the first six months of 2014, Triodos Bank’s balance sheet rose by 6% to EUR 6.8 billion. Growth during the same period last year was 11%.
"Sustainable banking with Triodos Bank remains an attractive proposition for many people in Europe."
Triodos Bank CEO, Peter Blom
Total assets under management, comprised of Triodos Bank, Triodos Investment Funds and Triodos Private Banking grew by 4% to EUR 10 billion.
Triodos Bank’s net profit is EUR 11.5 million. This is 14% lower compared to the same period in 2013 due to the contribution of the nationalisation of the Dutch Bank SNS REAAL. Without this exceptional levy the net profit would have increased by 22%.
Lending to sustainable businesses and projects rose by 4%. Growth of 5% was recorded in the same period in 2013. Stable and healthy lending growth is crucial for Triodos Bank and directly contributes to its mission.
The addition to the provision for bad debts decreased to EUR 5.2 million compared with EUR 5.5 million in the same period of 2013.
In the first six months of 2014 the number of customers increased by 33,000 to a total of 550,000. This represents an increase of 6% in the first half of 2014. The amount of funds entrusted to Triodos Bank, which are composed of savings, fixed-term deposits, and sums in current accounts, increased by 7% during the first six months of 2014 (2013:12%).
Triodos Bank CEO Peter Blom: "Sustainable banking with Triodos Bank remains an attractive proposition for many people in Europe. Growth of our lending remains limited because of the economic uncertainty, a careful approach to making loans and an increasing regulatory burden which takes time and effort to deliver. A steady growth in volumes, of approximately 10% in funds entrusted and around 13% in loans, is expected for 2014."
During the first six month of 2014 the bank's equity increased by 4% to EUR 678 million, compared to 5% during the same period in 2013. The public continue to respond to campaigns to raise new capital and maintain Triodos Bank’s strong capital position.
Triodos Bank has a Common Equity Tier 1 ratio (CET1), which is an important indicator of a bank’s solvency, of 18.3%. The leverage ratio, as calculated following the new CRD IV / CRRrequirements, is 9.2%. This is far higher than the 3% now considered an appropriate minimum for European banks.
Funds under management
Funds under management consist of two parts: funds managed by Triodos Private Banking and the total amount of money invested in funds managed by Triodos Investment Management. In the first six months of 2014, total funds under management decreased by 1% to EUR 3.2 billion. In the same period last year they grew by 9%.
Assets under management by Triodos Investment Management decreased by 4% to EUR 2.4 billion mainly due to the transfer of Ampere Equity Fund (EUR 221 million) to another fund manager on 1 January 2014. Without this transfer, assets under management would have increased by 5%, compared to 8% during the same period last year.
Part of this increase was due to the Triodos Sustainable Funds (Triodos SICAV I), which grew by 26% during the first half of 2014. In addition, the Triodos Organic Growth Fund, which launched in January 2014, attracted EUR 28 million in the first half of 2014.
In the first half of 2014, funds managed by Triodos Private Banking grew by 8% to EUR 743 million, in line with plans. In the same period last year they grew by 13%.
A steady growth in volumes is expected in the second half of 2014.Triodos Bank’s profit will be stable but continue to be under pressure during 2014. However, barring unforeseen circumstances, a net profit of between EUR 20 and 25 million is expected.