TlB Annual Report 2009 - Triodos Bank

Triodos Bank Belgium
The Belgian banking market was dominated
by the omnipresent financial crisis
during 2009. The credit crunch that came
with it meant many banks were less willing to
lend, resulting in increased interest margins on
loans. At the same time interest rates on
savings reached a historical low as a result of
the European Central Bank’s monetary policy.
Nevertheless Belgians poured money into
saving accounts seeking security and waiting
for better investment opportunities in the
future. This led to an overall increase in savings
volumes in the Belgian market of 30%.
While many banks struggled, Triodos Bank
Belgium grew rapidly in these conditions
exceeding targets in loans and savings volumes
and number of new clients - and connecting
more savers with more sustainable projects
than ever before. The crisis created an opportunity
to communicate the benefits of Triodos
Bank’s sustainable and transparent banking
model; communication which lead to a nomination
for the Corporate Communication
Award of the year. This helped to build the
bank’s profile across the country. A survey
conducted at the end 2009 showed that recognition
of Triodos as a sustainable bank has
doubled in two years (‘top of mind’ awareness
growing from 3% in 2007 to 8% in 2009).
More and different types of business also
increasingly recognise Triodos Bank as a
professional and credible financial partner.
Examples include: a Belgian public authority
investing in Triodos Bank’s capital for the first
time creating an important precedent for others
to follow; a Triodos Bank-managed private
share issue on behalf of a sustainable company
expanding in to continental Europe, again for
the first time; a collaboration with two regional
financial vehicles to co-finance developments
in the social economy; a real estate finance
collaboration with major players in housing for
the elderly; and a co-financing agreement for a
wind farm in France, creating an opportunity
for many more of these types of agreements in
this market.
In the second half of the year high-street banks
launched massive communication campaigns
and targeted products such as green loans, and
socially responsible bank notes. While the
authenticity of these developments is often
dubious, their efforts to tap in to the sustain able
banking market says a great deal about the
profile this approach to banking now enjoys.
ACHIEVEMENT OF GOALS FOR 2009
The balance sheet total of the Belgian branch
before the elimination of transactions between
Triodos companies increased by eur 160 million
(26%) to eur 780 million. Lending increased by
eur 99 million to eur 358 million, well above a
target of eur 56 million. Entrusted funds grew
more strongly than expected, by eur 137 million
to eur 709 million. 6,900 new customers joined
the Bank, compared to a target of 5,000.
Interest margin, the main source of income for
the branch, is traditionally very low in the
Belgian market. Thanks to higher interest
income on loans and a lower interest income
on savings, the Belgian branch increased its
overall average interest margin slightly compared
to last year.
LENDING
The loan portfolio grew by eur 99 million (38%)
to eur 358 million, considerably exceeding
expected growth of eur 56 million. There was a
40% increase in finance for sustainable energy
projects and a 36% increase in lending to small
and medium-sized businesses.
In the renewable energy sector, the growth was
again most marked in wind energy (38%).
The year’s highlights included financing the
St-Patrick 35 mw wind farm in the North of
France. Triodos Bank provided half of the
eur 45 million leading debt, representing the
largest ever deal financed by Triodos Bank
Belgium. The branch also financed several solar
projects, such as Greenfever, the biggest solar
project in the Benelux.
The bank’s position as a lender to small and
medium-sized enterprises was also strengthened
in 2009. Important contracts were signed in
sustainable construction and nursing homes for
the elderly. An active approach to the social
economy led to increased lending and cooperative
deals with Netwerk Rentevrij and Credal,
TRIODOS BANK - ANNUAL REPORT 2009 23