Triodos Bank (TRIO) investor relations material

Executive summary

• Net profit was EUR 17.0 million, down from EUR 36.2 million, mainly due to a EUR 14 million settlement provision and one-off Euronext listing costs.

• Customer deposits increased by EUR 288 million to EUR 14.8 billion, driven by personal banking.

• New business lending reached EUR 570 million and residential mortgage production EUR 333 million, with 62% of homes financed rated energy label A or higher.

• Strategic repositioning in Spain and Belgium, focusing on business lending and closing offices; discontinued new residential mortgages in Belgium and Spain.

• Successful Euronext Amsterdam listing and 80% acceptance of the DR settlement offer, reducing legal risks.

Financial highlights

• Total income was EUR 219.6 million, down 6% year-over-year, due to lower net interest margin and commission income.

• Net interest margin declined to 1.92%, impacted by ECB rate cuts and higher funding costs from MREL-related notes.

• Operating expenses rose by EUR 10.6 million to EUR 188.5 million, with EUR 14 million due to the settlement provision; excluding this, expenses decreased.

• Cost-income ratio was 86% (79% excluding the provision), above the medium-term target.

• Annualized return on equity was 2.7% (4.4% excluding the provision), compared to 5.6% in H1 2024.

Outlook and guidance

• Net interest margin expected to stabilize as ECB rate cuts end; further KYC investments planned but offset by cost management.

• Medium-term targets: RoE 5–7%, cost-income ratio 70–75%, CET1 ratio >15%, dividend payout 50%, fee income 20–30%.

• Continued focus on organic balance sheet growth, scaling business, and impact lending.