Triodos’ half-year earnings fall by 32% in the midst of the CDA scandal

BarcelonaDutch ethical bank Triodos Bank achieved a net profit of €18.8m after tax in the first six months of 2022, a 32% drop from €27.7m in the same period of the previous year, as reported this Thursday through a press release. The bank points out, however, that if non-recurring costs are excluded, earnings rise to 24.2 million euros. These results exclude, among other things, litigation over its Certificates of Deposit of Shares (CDAs). This product, which the institution began distributing four decades ago, has left thousands of its customers in a complicated situation, without access to their savings and with very likely losses. The case has already reached the courts.

For the first six months of 2022, Triodos’ revenue rose to €174.4 million, up 5% year-on-year, due to credit growth and despite having fewer funds under management. On the other hand, the operating expenses of the ethical bank increased to 152.1 million euros. In this item, the entity also took into account the legal costs in relation to the CDAs and the expansion of the team for matters of compliance and prevention of capital laundering.

“The first 6 months of 2022 have been affected by challenging circumstances in terms of geopolitical, economic and social development. Triodos Bank has achieved adequate financial results and has maintained its solid financial position”, highlighted Jeroen Rijpkema, chairman of the committee executive and CEO of the bank. The manager also announced the launch of the first “bio-based” mortgage in the Netherlands, which promotes homeowners using green building materials, and offers a reduced interest rate for such homes.

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With regard to CDAs, Rijpkema has assured that the bank maintains as a “key priority” resolving the suspension of the commercialization of this product. The CDAs were referenced to the value of the Triodos shares. The way it worked was that customers would sell them when others wanted to buy them, but the problem came when those interested in the product disappeared and those who wanted out started piling up. The situation, identical to that experienced with the preferential ones because the holders did not have access to the savings invested in CDA, has left around 46,500 affected in Europe, of which 7,000 in Spain.

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