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4. Loans

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Loans

6,647,497

5,765,388

Provision for doubtful debts

–49,596

–57,050

 

 

 

 

 

 

Balance sheet value as at 31 December

6,597,901

5,708,338

 

 

 

This relates to loans to customers.

As part of the interest rate risk management Triodos Bank entered into interest rate swaps to hedge the interest risk on fixed interest rate loans. The critical terms of the interest rate swaps such as nominal amount, maturity date and interest payment dates fully match the terms of the respective loans. The total notional value of these loans is EUR 145.1 million which equals the notional value of the interest rate swaps (2016: EUR nil). The fair value of the interest rate swaps as at 31 December 2017 is EUR 364.6 thousand (2016: EUR nil). Triodos Bank applies cost price hedge accounting on these interest rate swaps and therefore the fair value is not recognised on the balance sheet.

Loans classified by residual maturity:

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Payable on demand

191,073

192,884

1 to 3 months

583,364

631,471

3 months to 1 year

397,422

429,912

1 to 5 years

1,712,240

1,526,954

Longer than 5 years

3,763,398

2,984,167

 

 

 

 

 

 

Balance sheet value as at 31 December

6,647,497

5,765,388

 

 

 

EUR 496.0 million (2016: EUR 571.0 million) of the loans relates to loans to local authorities with a maximum original maturity of one year and one day.

The movement of the provision for doubtful debts is as follows:

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2017

2016

 

Specific

Collective

Total

Specific

Collective

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet value as at 1 January

53,679

3,371

57,050

65,493

2,558

68,051

Addition

6,817

4,140

10,957

9,623

1,102

10,725

Write-off

–8,987

–8,987

–14,735

–14,735

Release

–7,693

–1,574

–9,267

–6,050

–248

–6,298

Exchange rate differences

–138

–19

–157

–652

–41

–693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet value as at 31 December

43,678

5,918

49,596

53,679

3,371

57,050

 

 

 

 

 

 

 

The quality of the loan book remained satisfactory overall. This, and a continuing focus on maintaining and diversifying a high quality loan portfolio, led to a decline of the impairments for the loan portfolio to 0.03% of the average loan book (2016: 0.10%).

The provision does not relate to contingent liabilities and irrevocable facilities. In the provision for doubtful debts is included an Incurred But Not Reported (IBNR) provision in the amount of EUR 5.9 million (2016: EUR 3.3 million). The increase is related to further refinements of the calculation.

EUR 0.1 million of the addition to the provision relates to interest that has been invoiced but has not been received (2016: EUR 0.2 million).

A breakdown related to received collateral, relevant industries, sectors and per geographic region can be found in the pillar 3 report 2017 which can be found on the internet site of Triodos Bank.