Financial results

In 2010, Triodos Bank’s income grew by 16% to EUR 103 million (2009: EUR 88 million). Triodos Investment Management contributed EUR 21 million to this figure (2009: EUR 19 million).

In 2010, commission income amounted to 34% (2009: 33%) of our total income in line with expectations.

In 2010, the ratio of operating expenses is 76% (2009: 80%). In 2009, the ratio was higher than expected as a result of the cost of a contribution to the Dutch deposit guarantee system due to the collapse of the Dutch DSB Bank.

Net profit of EUR 11.5 million, up 20% on 2009. (impact statistic)

Net profit of EUR 11.5 million was up by 20% (2009: EUR 9.6 million). Earnings per share, calculated using the average number of outstanding shares during the financial year, were EUR 2.45 (2009: EUR 3.00), an 18% decrease. The profit is placed at the disposal of the shareholders.

Triodos Bank proposes a dividend of EUR 1.95 per share (2009: EUR 1.95). This means that the pay-out ratio (the percentage of total profit distributed as dividends) will be 80% (2009: 65%).

The medium-term objective is to grow the return on equity to 7% of Triodos Bank’s equity in normal economic conditions. This target was not projected for 2010 per se, but 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, new investments such as a new branch in Germany, and growth in the number of savings customers in particular, the profit remained below 7% in 2010, 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 is managing 20 investment funds, totalling EUR 1.8 billion. Together these funds make a substantial contribution to the bank’s profit. Net profit in 2010 was EUR 3.8 million (2009: EUR 3.6 million).

Number of statement of depository receipts per holder

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Amounts in millions of EUR

Depository receipt holders

Issued capital

 

2010

2009

2010

2009

 

 

 

 

 

1 – 50

8,154

7,487

10.9

9.5

51 – 500

7,805

6,470

94.0

74.5

501 – 1,000

669

537

33.6

26.7

1,001 and more

363

284

224.4

203.5

 

 

 

 

 

 

 

 

 

 

Total

16,991

14,778

362.9

314.2

 

 

 

 

 

The number of depository receipt holders increased from 14,778 to 16,991. Equity increased by 14% from EUR 318 million to EUR 362 million. In 2010, maintaining an internal market for the buying and selling of depository receipts for shares continued to operate effectively. At the end of 2010, the net asset value for each depository receipt was EUR 73, increasing from 72 at the end of 2009.

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 2010 the BIS ratio was 14.7% (2009: 16.5%), a decrease that was due to the high growth of the loan book during the year. This percentage is well above the regulatory minimum of 8%.

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