Ethical bank Triodos has seen its profits soar in the last financial year amid the Covid-19 pandemic, but has warned of "new uncertainty" for the economy amid Russia's invasion of Ukraine.
Posting its latest results, the Bristol-headquartered financial institution reported a net profit of €50.8m (£42.7m) for the year ending 2021 - up €23.6m on the year previously.
The bank’s total assets under management have increased by €3.9bn over the last 12 months to €24.2bn, while its customer numbers grew by 3% to nearly 750,000.
Triodos, which is focused on assets with a clear social, cultural or environmental impact, said it was planning to propose a dividend amount of €1.80 per depository receipt at the annual general meeting in May.
In 2021, retail and business banking activities contributed a share of 88% to the bank’s overall net profit - up from 76% in 2020. It was also named the world's top bank for funding clean energy deals.
Over the last year Triodos said it had increased its lending to sustainable businesses, despite challenging global economic circumstances due to ongoing disruption of the economy by the Covid-19 pandemic.
In the UK, overall customers numbers grew by 16% in the year to 84,964 and customer deposits increased 13.8% to £1.6bn. The total UK loan book grew to £1.1bn.
The bank said in Britain its overall customer numbers had almost doubled since it had launched its personal current account in 2017. The UK arm of the business realised a £7.8m profit after tax, to yield a 4.3% return on equity.
"We have been able to achieve strong results and customer growth despite the ongoing challenge of the Covid-19 pandemic and low-interest environment,” said Bevis Watts, chief executive of Triodos Bank UK.
“Tackling environmental and social challenges continues to be front of mind for many and, in this context, Triodos plays a vital role in the UK banking landscape. "
In 2022, Triodos said it expected to increase fee income over time by further growing the activities of Triodos Investment Management as well as fees-based banking activities.
It said it was aiming to grow its bank balance sheet "modestly", maintaining a stable loan-to-deposit ratio.
But the bank warned of "new uncertainty" caused by the invasion of Ukraine by Russia - although it said it did not have any direct exposure in either country.
“Triodos Bank is deeply concerned about Russia’s attack on a sovereign European country and feels for the people in Ukraine," the bank added in a statement.
“The impact on society and financial markets is hard to predict at this moment of publication of our annual report.”
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