TlB Annual Report 2009 - Triodos Bank
TlB Annual Report 2009 - Triodos Bank
TlB Annual Report 2009 - Triodos Bank
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Doubtful debts and overdue receivables per country<br />
in thousands of EUR<br />
Doubtful debts* Provision for<br />
doubtful debts<br />
Value<br />
adjustments<br />
Overdue<br />
receivables**<br />
<strong>2009</strong> 2008 <strong>2009</strong> 2008 <strong>2009</strong> 2008 <strong>2009</strong> 2008<br />
The Netherlands 16.994 11.787 5.631 4.114 2.221 1.562 3.746 4.303<br />
Belgium 8.555 2.271 2.035 860 1.255 -66 867 1.034<br />
United Kingdom 2.837 1.381 1.326 708 641 138 3.963 5.176<br />
Spain 5.544 5.068 705 304 401 123 10.232 12.649<br />
Germany 3.105 2.581 495 1.263 476 1.263 — —<br />
Ireland — 217 200 200 -14 188 527 —<br />
France — — — — — — 27 —<br />
Total 37.035 23.305 10.392 7.449 4.980 3.208 19.362 23.162<br />
* Doubtful debts deducted from provision for doubtful debts<br />
** Overdue receivables excluding doubtful debts<br />
Provision in % of outstanding credit<br />
% Provisions<br />
1.4<br />
1.2<br />
1.0<br />
0.8<br />
0.6<br />
0.4<br />
0.2<br />
0.0<br />
2005 2006 2007 2008 <strong>2009</strong><br />
The quality of the credit portfolio is good.<br />
<strong>Triodos</strong> <strong>Bank</strong> does not use securitisation for its<br />
loan portfolio and the acquisition of loans.<br />
GOVERNMENTS AND FINANCIAL INSTITUTIONS<br />
Moneys that are not invested in loans to<br />
customers are invested for liquidity purposes in<br />
government bonds or placed with banks in the<br />
country were the money was raised. The bond<br />
portfolio of the bank is mainly comprised of<br />
government, and government guaranteed<br />
bonds. <strong>Triodos</strong> <strong>Bank</strong> also invests in a limited<br />
number of other types of bond issued by<br />
regional authorities, and financial institutions.<br />
<strong>Bank</strong>s are selected on the basis of their creditworthiness<br />
and screened on their sustainability<br />
performance by <strong>Triodos</strong> Research. For large<br />
banks, <strong>Triodos</strong> <strong>Bank</strong> uses a ‘best in class’<br />
approach combined with <strong>Triodos</strong>’ absolute<br />
criteria. Smaller local retail banks are also<br />
screened against <strong>Triodos</strong>’ absolute criteria.<br />
Exceptions to this policy can occur, if for credit<br />
risk reasons, the number of selected banks in a<br />
country is not sufficient to place <strong>Triodos</strong><br />
<strong>Bank</strong>’s liquidities. In such cases, deposit notice<br />
periods will not exceed three months. All<br />
counterparty limits for banks are granted by the<br />
Executive Board.<br />
In accordance with Basel ii guidelines, <strong>Triodos</strong><br />
<strong>Bank</strong> uses the credit ratings of Fitch and Moody’s<br />
for the assessment of the relative risk for all<br />
asset items valued by a recognised credit rating<br />
institution. For all receivables, a policy has been<br />
established that guarantees an unambiguous<br />
and coherent application of these credit ratings.<br />
MARKE T RISK<br />
Market risk is the risk that a <strong>Bank</strong>’s investment<br />
portfolio drops in value due to fluctuations in<br />
prices on the financial markets (interest rates,<br />
exchange rates, or share prices). This risk arises<br />
from trades on behalf of customers as well as<br />
own account trading. <strong>Triodos</strong> does not have a<br />
trading book.<br />
Foreign Exchange Rate Risk is managed within<br />
the Market Risk Framework. <strong>Triodos</strong> base<br />
currency is the Euro. Foreign currency positions<br />
are covered with off-balance derivatives<br />
positions, with the exception of those arising<br />
from strategic investments. The uk Branch<br />
56 TRIODOS BANK - ANNUAL REPORT <strong>2009</strong>
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