Triodos Bank reaches £1bn in UK lending as expected credit losses rise due to Covid-19

By Oliver Smith on Friday 21 August 2020

Digital Banking

An additional €12.6m in expected credit loss provision weighed on the bank's H1 profits.

Triodos Bank reaches £1bn in UK lending as expected credit losses rise due to Covid-19
Image source: Bevis Watts/Triodos Bank.

Sustainable bank Triodos has hit a £1bn UK lending milestone as its 2020 half year results were published this morning.

Triodos, which operates in six European countries, saw its total loan book reach €8.58bn (up 4.6 per cent) with the UK accounting for £1008m of that.

Profits fell to just €6.7m during the six months to 30 June, down from €18.1m last year, which the bank said was almost entirely due to a much larger expected credit loss provision that it’s been forced to account for in the wake of Covid-19.

Triodos added €12.6m to its credit loss provision in the first half of the year, up from just €2m added in H1 2019, which it said was “strongly affected by the negative economic outlook for 2020 due to the COVID-19 crisis”.

Read more: Triodos Bank UK CEO - “We’re no ‘challenger bank’, we exist to challenge the way banking is done”

Overall the bank’s balance sheet across its markets has grown to €12.9bn, up 8.6 per cent year-on-year and with the UK accounting for £1.5bn of that.

Speaking on the UK results, Triodos Bank UK CEO Bevis Watts said: “As we celebrate 25 years of operating in the UK this year it feels timely that we have reached a milestone of £1 billion in sustainable lending.” 

“This represents investment in green energy & buildings, organic food & farming, care for those in need and support for arts & culture – all positive lending areas that really need support now more than ever as we look to reset our economy onto a sustainable and more socially inclusive footing.”

Looking ahead the bank cautioned that further expected credit loss provisions may be needed, saying it remains “uncertain to what extent returns realised in the second half of this year will be partially offset by further increase of ECL provisions.”

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