Triodos Bank (TRIO) H2 2025 earnings summary

Executive summary

• Reported a net loss of €25 million for 2025, mainly due to a €59.7/€60 million provision for German fiber optic market exposure and other strategic provisions, while core banking activities remained resilient with stable net interest margin and strong deposit growth.

• Achieved €1.1 billion in new business lending and €736–€763 million in new residential mortgages, with the mortgage portfolio reaching €5.6 billion and customer deposits rising to €15.1 billion, mainly from personal banking customers.

• Strategic milestones included listing depository receipts on Euronext Amsterdam, high settlement offer acceptance (82.4%), and significant progress in litigation risk reduction.

• Focused growth strategy led to winding down German banking, ceasing mortgage origination in Belgium and Spain, simplifying Spanish operations, and closing offices in Spain.

• Met 2030 emissions target in 2025, achieving a 42% reduction in greenhouse gas emissions compared to 2020.

Financial highlights

• Net result was €-25 million (2024: €-3 million), impacted by provisions for German fiber optic loans and DR settlements.

• Net interest margin remained stable at 1.92% (down from 2.10% in 2024); net interest income declined 5% to €331.1 million.

• Cost to income ratio improved to 85% (2024: 97%); operating expenses decreased to €374.2 million.

• CET1 ratio improved to 17.4% (2024: 16.4%), well above regulatory requirements.

• Deposits from customers grew 4.1% to €15.1 billion, with strong growth in the Netherlands.

Outlook and guidance

• Expecting loan growth of 3%-5% and stable or rising net interest income in 2026, with a return to income growth and lower operating expenses.

• Fit for Impact program targets €25-€30 million annual cost reduction by 2028 and a reduction of 250-270 FTEs.

• Cost to income ratio target set at 70%-75% and return on equity at 5%-7% midterm.

• Wind-down of German business to be completed by end of 2027.

• Legal expenses expected to decline further in 2026.