In 2011, Triodos Bank’s income grew by 25% to EUR 129 million (2010: EUR 103 million). Triodos Investment Management contributed EUR 23 million to this figure (2010: EUR 21 million). In 2011, commission income amounted to 35% (2010: 34%) of total income, in line with expectations.
The total amount of assets under management including Triodos Bank and the investment funds and Private Banking grew by EUR 1.2 billion, or 21%, to EUR 6.8 billion.
Triodos Bank’s balance sheet total grew by 23% to EUR 4.3 billion thanks to a steady growth of the funds entrusted and a successful share issue. Growth of between 15 to 20% was expected.
Triodos Bank’s total number of customers increased by 24%, exceeding expected growth of 15% and 20%. By the end of 2011, Triodos Bank had more than 355,000 customers. This demonstrates that a growing number of people are making a much more conscious choice about how and where they want to bank.
In 2011, the ratio of operating expenses against income was 70% (2010: 76%). This is due to higher income from interest and commissions from lending activity combined with a strict control of expenses.
Profit before tax and loan provisioning increased from EUR 24.7 million to EUR 38.8 million thanks to growth of both the balance sheet and funds under management, and better efficiencies. Net profit of EUR 17.3 million was up by 51% (2010: EUR 11.5 million). Loan loss provisions were slightly higher at 0.63% of the average loan book, compared to 0.52% of the loan book in 2010. Earnings per share, calculated using the average number of outstanding shares during the financial year, were EUR 3.18 (2010: EUR 2.45), a 30% increase. The profit is placed at the disposal of the shareholders.
Triodos Bank proposes a dividend of EUR 1.95 per share (2010: EUR 1.95). This means that the pay-out ratio (the percentage of total profit distributed as dividends) will be 61% (2010: 80%).
The medium-term objective is to grow the return on equity to 7% of Triodos Bank’s equity in normal economic conditions. This target should be seen as a realistic, long-term average for the type of banking activity that Triodos Bank engages in. The mature branches (The Netherlands, Belgium and the United Kingdom) have proven that they can achieve this level of profitability. As a consequence of a troubled economic and financial climate, leading to above average provisions in the loan portfolio, and growth in the number of savings customers in particular, the profit remained below 7% in 2011, as expected.
The time frame within which Triodos Bank realises this 7% profit objective depends on the opportunities it chooses to, and can, take advantage of in a market where sustainable development will be highlighted in the coming years. In the current market, delivering this profit objective is subject to considerable uncertainty.
Triodos Investment Management’s investment funds totalled EUR 2.1 billion. Together these management funds activities make a substantial contribution to the bank’s profit. Net profit in 2011 was EUR 4.2 million (2010: EUR 3.8 million).
Triodos Private Banking has been growing successfully. Total assets under management are now EUR 436 million (2010: EUR 357 million). In addition, EUR 303 million of deposits, investment funds and Triodos Bank depository receipts are accounted for on the balance sheet of the Dutch branch. Private Banking in The Netherlands increased its profitability by 49% to EUR 0.7 million in 2011.
The Belgian results of Private and Personal banking are fully consolidated in the branch figures.
Triodos Bank increased its share capital by EUR 75 million, or 24%, thanks to depository receipt issue campaigns targeting retail investors in particular, which ran throughout the year in Belgium, The Netherlands and Spain.
The number of depository receipt holders increased from 16,991 to 21,638. Equity increased by 25% from EUR 362 million to EUR 451 million. This increase includes net new capital and profit (minus a dividend). In 2011, an internal market for the buying and selling of depository receipts for shares continued to operate effectively. At the end of 2011, the net asset value for each depository receipt was EUR 74, compared to EUR 73 at the end of 2010.
From the start of 2008, the BIS ratio (capital adequacy ratio), an important measure of a bank’s solvency, has been calculated according to the Basel II guidelines. At the end of 2011 the BIS ratio was 14.4% (2010: 14.7%). Triodos Bank aims for a solvency ratio of at least 12%. The Core Tier I ratio was 14.0% (2010: 13.8%).