Triodos Bank posts annual profits of £9m
Bristol based Triodos Bank has reported a £9.2m profit for the last 12 months.
The ethical bank said profits had increased from £7.8 on the previous year to yield a 4.8 per cent return on equity.
The bank said it maintains sound capital and healthy liquidity positions with a Common Equity Tier 1 ratio of 21.6 per cent.
Expected Credit Loss (ECL) impairment charges were £4.9m. As a proportion of the average loan book this is 0.43 per cent, which compares favourably to industry benchmarks.
Overall customers numbers in the UK grew by 3.5 per cent in the year to 87,896 and customer deposits increased 2.1 per cent to £1,642m.
Gross new sustainable lending totalled £131m. Triodos Bank UK’s total loans and advances contracted slightly to £1,121m due to the challenging economic conditions slowing customer investment plans, affecting some of the bank’s core sectors, and the sharply rising interest rates that prompted higher levels of early repayment.
Bevis Watts, chief executive of Triodos Bank UK: “We have achieved a sound financial performance given the external challenges in 2022, particularly in the UK economy.
“As the UK’s leading sustainable bank, we have focused on supporting our community through difficult times, with rising inflation and the energy crisis coming straight off the back of the pandemic years.
“However, we continue to pursue our mission to support impactful projects – for example affordable homes and community renewable energy and education providers, small businesses and charities. We also explored new impactful sectors, such as our first loan to a rewilding project.
“In these tumultuous times, long-standing global and societal issues, like climate change and inequality, can often feel like they are being side-lined. However, as we rebuild our economy, if we are to avoid future crises then we cannot simply follow the status quo.
“Triodos continues to be about challenging the existing narrative and championing a new way to do finance that’s good for people and planet.”
