Triodos Bank, a frontrunner in sustainable banking since 1980, today announced its performance for 2024. Triodos Bank’s 2024 Annual Report was also published today and is available here: www.annual-report-triodos.com.
Delivering positive impact
- Triodos Bank has delivered positive impact to society through EUR 24.1 billion (2023: EUR 23.2 billion) of total assets under management directed towards its five transition themes (energy, food, resources, society and wellbeing), with a growth of EUR 905 million.
- Triodos Bank announced its commitment to provide EUR 500 million in investments, loans and contributions to the Nature-based Solutions (NbS) sector between 2020 and 2030.
- Triodos Bank financed 561 sustainable energy projects in 2024 (2023: 640 projects) attributing to the avoidance of 997 ktonnes of CO2e emissions (2023: 996 ktonnes CO2e).
- 42,500 Dutch citizens signed an initiative Triodos Bank co-initiated calling on the Dutch House of Representatives to act now to phase out fossil fuels.
Solid underlying financial performance
- The provision of EUR 101 million before tax (EUR 74.9 million after tax), related to the anticipated costs of the one-off settlement offer to eligible Depository Receipt (DR) Holders, had a significant effect on financial results over 2024. The underlying results are solid.
- Net profit decreased by 104% to EUR -3.0 million (2023: EUR 77.2 million). Underlying profit excluding the provision is EUR 71.9 million.
- Return on Equity (RoE) declined to-0.2% (2023: 6.1%). Excluding the provision, RoE was 5.6%.
- Cost to Income ratio (CIR) was 97% (2023: 73%). Without the provision, CIR increased to 76% due to increased personnel expenses resulting from wage inflation and a modest growth in co-worker (from 1,851 in 2023 to 1,938 in 2024) to manage regulatory change.
- Triodos Bank continues to be well capitalised with a CET1 ratio of 16.4% (31 December 2023: 16.7%) and Total Capital Ratio of 20.0% (31 December 2023: 20.4%).
- Triodos Bank's deposits from customers increased by EUR 719 million in 2024 to EUR 14.5 billion (2023: EUR 13.8 billion). This increase shows our customers support of our mission to make money work for positive change in society.
- Given the provision, the Executive Board proposes to not pay a final dividend over 2024. The total dividend is therefore equal to the interim dividend of EUR 1.27 per DR paid in September 2024.
Strategic and operational highlights
- Triodos Bank remains steadfast in its commitment to deliver impact through efficient banking operations and pursuing focused growth with conscious capital allocation choices and additional choices regarding product- market combinations.
- In this context, Triodos Bank is currently reviewing its mortgage lending activities internationally.
- Further, to improve its efficient and robust operating model, Triodos Bank is investing in a new more modern core banking system to offer improved propositions to our customers in Spain.
- Triodos Bank is dedicated to maintaining its leadership in impact finance and in this respect, we announced via Triodos Investment Management a joint venture with Fondaction, a mission-aligned Canadian labour-sponsored investment fund, to create an investment fund for investing in biodiversity and natural capital solutions.
- In September 2024, Triodos Bank announced it had successfully issued EUR 350 million of MREL eligible Senior Preferred Notes within our Green Bond Framework.
- DR Holders approved the listing of the Depository Receipts on Euronext Amsterdam at the Extraordinary General Meeting (EGM) on 23 October 2024. Preparations for the listing are well underway.
- In November 2024, Triodos Bank announced that Fitch Ratings had reaffirmed Triodos Bank N.V.'s Long-Term Issuer Default rating at BBB with a negative outlook.
- In January 2025, Triodos Bank announced a total package of measures agreed with Stichting Certificaathouders Triodos Bank (SCTB) that includes an opt-in settlement offer of EUR 10 per DR to eligible DR Holders. The total package also includes additional measures relating to governance, communication and community building.
- Due to changing regulation and net-zero standards, Triodos Bank has updated its climate targets.
Jeroen Rijpkema, CEO and Chair of the Executive Board:"Despite the turbulence in the world around us, we can look back on 2024 as a year of resilience of, and progress for, Triodos Bank, demonstrating that good financial performance, adequate risk management and positive impact can go hand in hand. Our solid financial position and performance allowed us to take a substantial financial provision related to the one-off settlement offer for eligible DR Holders. We expect to make this settlement available for acceptance as of the end of March.
We strengthened our future resilience by deciding to pursue a listing on Euronext, by adjusting our articles of association including the nominal value of our shares, by the successfully establishing our Debt Issuance Programme and an issuance of EUR 350 million MREL eligible Senior Preferred Notes within our Green Bond Framework. We continued financing change across the energy, food, resources, societal and wellbeing transitions.
While evolving regulations require us to reassess our specific net-zero target, the ambition to financing climate solutions and driving systemic change in the financial sector remains strong as ever. We will further optimise our operations group-wide through strict capital management and additional choices regarding product-market combinations with our Dutch banking activities taking centre stage.
Looking ahead to the year 2025, we anticipate further moderation in interest rates leading to a lower net interest margin. Furthermore, we anticipate increased costs in relation to wage inflation, the listing of our DRs on Euronext and the implementation of the settlement offer. Triodos Bank will continue to navigate these circumstances with enhanced cost control while balancing growth, impact and financial resilience."
