These relate to the total liabilities in respect of irrevocable undertakings, which may lead to a further loan.

in thousands of EUR

2018

2017

Undrawn debit limits on current accounts and credit cards

213,008

165,752

Accepted loans not yet paid out

1,165,538

874,303

Valid loan offers not yet accepted

84,434

106,259

Other facilities

1,009

2,353

 

1,463,989

1,148,667

Other off-balance sheet liabilities

In addition to the contingent liabilities and irrevocable facilities reported on the balance sheet, the deposit guarantee scheme and the investor compensation scheme is applicable as stated in Article 3:259 of the Financial Supervision Act. The funds entrusted insured under the deposit guarantee scheme amounts to EUR 7,512 million (2017: EUR 6,864 million). In 2016 the annually ex-ante contribution to the Deposit Guarantee Fund started in order to reach a target level of 0.8% of the insured funds entrusted in The Netherlands in 2024. The contribution to the Deposit Guarantee Fund amount to EUR 8.4 million in 2018 (2017: EUR 6.8 million).

Value Added Tax

As per July 1, 2015 the Belgian tax office enacted administrative decision E.T.127.577 (‘the Decision’) following the Belgian interpretation of the Skandia ruling by the European Court of Justice. As a result of the Decision services provided by Triodos Bank N.V.’s head office in The Netherlands to Triodos Bank Belgian branch are deemed subject to value added tax (‘VAT’) in Belgium as of this date (except for those services which are VAT exempt).

As a result, Triodos Bank Belgian branch incurs VAT on these services which is then rendered effectively non-tax deductible through the VAT exempt services provided by Triodos Bank Belgian branch towards its clients. Adding to that Triodos Bank Belgian branch faces double VAT taxation for externally bought supplies or services by Triodos Bank N.V.’s head office in The Netherlands which are allocated to Triodos Bank Belgian branch.

Triodos Bank is of the view that the Decision is not in line with Belgian and European Law, a view which is supported by its tax and legal advisors. Triodos Bank has contacted the Belgian tax authorities to discuss its position on the matter.

Should the case be decided against Triodos Bank, then the (gross) impact, before deduction of corporate income tax, on the profit and loss account involved to settle the Belgian VAT incurred by Triodos Bank Belgian branch until balance sheet date is estimated at a maximum of EUR 4.0 million (2017: EUR 4.0 million). In 2018 the corporate income tax rate in Belgium was 29.58%.

Rental commitments

in thousands of EUR

Location

Amount per annum

Residual term

Zeist, The Netherlands

536

6 months

Zeist, The Netherlands

166

12 months

Zeist, The Netherlands

410

3 months

Zeist, The Netherlands

90

12 months

Berlin, Germany

17

12 months

Brussels, Belgium

825

60 months

Gent, Belgium

48

12 months

Edinburgh, United Kingdom

23

69 months

Albacete, Spain

9

2 months

Badajoz, Spain

26

12 months

Barcelona, Spain

60

3 months

Bilbao, Spain

14

3 months

Gerona, Spain

18

1 month

Granada, Spain

31

6 months

La Coruña, Spain

12

3 months

Las Palmas, Spain

10

3 months

Madrid, Spain

35

3 months

Malaga, Spain

40

6 months

Murcia, Spain

24

3 months

Oviedo, Spain

22

3 months

Palma de Mallorca, Spain

22

3 months

Pamplona, Spain

16

3 months

Santa Cruz de Tenerife, Spain

14

3 months

Sevilla, Spain

24

3 months

Valencia, Spain

16

3 months

Valladolid, Spain

22

3 months

Zaragoza, Spain

15

6 months

Frankfurt, Germany

201

6 months

Lease commitments

in thousands of EUR

Lease commitments relate primarily to cars that have been entered into lease contracts with periods between 3 and 60 months with an annual charge of EUR 980.

Commitments for software use

in thousands of EUR

The following commitments have been entered for software use:

  • For a period of at least 1 year a fixed annual payment of EUR 150 regarding a mortgage tool.
  • For a period of at least 1 year a variable annual charge of approximately EUR 474 regarding the use of a banking system.
  • For a period of at least 1 year a variable annual charge of approximately EUR 90 regarding an application and database server.
  • For a period of at least 1 year a variable annual charge of approximately EUR 30 regarding the support of a customer engagement tool.
  • For a period of at least 1 year an annual charge of EUR 150 regarding the support of a securities administration tool.
  • For a period of at least 5 years a variable annual charge of approximately EUR 2,052 regarding the use of a banking system.
  • For a period of at least 2 years a variable annual charge of approximately EUR 62 regarding the use of an asset management tool.

Other commitments

in thousands of EUR

The following commitments have been entered:

  • Services relating managing of mortgages for a period of at least 1 year with an annual charge of EUR 1,795.
  • Services relating payment transactions for a period of at least 2 years with a variable annual charge of approximately EUR 4,500.
  • Services relating payment transactions for a period of at least 1 year with a variable annual charge of approximately EUR 106.
  • Services relating payment transactions for a period of at least 1 year with a variable annual charge of approximately EUR 175.
  • Services relating online campaigns and TV commercials for an amount of EUR 122.
  • Services relating payment transactions for a period of at least 2 years with an annual charge of approximately EUR 105.
  • Services relating payment transactions for a period of at least 1 year with an annual charge of approximately EUR 32.
  • Services relating payment transactions for a period of at least 1 years with an annual charge of approximately EUR 22.
  • Services relating payment transactions for a period of at least 2 years with an annual charge of approximately EUR 32.
  • Services relating protection of payment systems for a period of at least 0.5 years with a variable annual charge of approximately EUR 490.
  • Services relating maintenance of building equipment for a period of at least 0.5 year with an annual charge of EUR 27.
  • Services relating providing temporary co-workers for the customer contact centre for a period of at least 3 months with a variable annual charge of approximately EUR 650.
  • Services relating to an engagement dialogues programme for a period of at least two years with an annual charge of approximately EUR 88.

Triodos Bank has been working on the realisation of a new office building since 2011, with the objective to start using the building in 2017. Due to delay in (legal) proceedings, the effective start of the construction works was in 2018. Completion of the new office is now scheduled in the third quarter of 2019. Total direct construction costs for the building amounts to EUR 50 million excluding VAT. Triodos Bank has an obligation for a perpetually renewable ground lease as of 2017 for an annual amount of EUR 0.2 million.