REG - Paragon Banking Grp - IFRS 9 Transition Report

Paragon BankingAnnouncement

20/03/2019 07:05

RNS Number : 3538T
Paragon Banking Group PLC
20 March 2019
 


Under stock exchange embargo until 7.00am Wednesday 20 March 2019
 
IFRS 9 Transition Report
 
Paragon Banking Group PLC ('Paragon' or the 'Group'), has today published its IFRS 9 transition report, giving details of the impact on its balance sheet and capital position of the adoption of IFRS 9 'Financial Instruments', which principally affects its accounting for loan impairments.
To view the transition report, please follow the link below:
http://www.rns-pdf.londonstockexchange.com/rns/3538T_1-2019-3-19.pdf
As previously disclosed in the financial statements of the Group for the year ended 30 September 2018, the transition to IFRS 9 will result in an increase in impairment provision of approximately £27 million at 1 October 2018.  The principal impacts on its balance sheet and capital ratios are set out below:




1 October 2018


IAS 39

£m


IFRS 9

£m


Change

£m


Change
%




Loans to customers


 


 


 


 




Mortgages


10,473.5


10,449.5


(24.0)


(0.2)%




Commercial Lending


1,133.2


1,131.3


(1.9)


(0.2)%




Idem Capital


521.1


519.8


(1.3)


(0.3)%




Total


12,127.8


12,100.6


(27.2)


(0.2)%




 


 


 


 


 




Equity


1,095.9


1,073.9


(22.0)


(2.0)%




 


 


 


 


 




CET 1 Ratio


13.8%


13.5%


(0.3%)


 




Total Capital Ratio


16.2%


15.8%


(0.4%)


 




UK Leverage Ratio


6.4%


6.3%


(0.1%)


 




 
Capital ratios set out above are calculated on a fully loaded basis.  The change in capital ratios after relief is minimal.
The Group will adopt the impairment requirements of IFRS 9 in the preparation of its half yearly financial report for the six months ending 31 March 2019, will be published on Wednesday 22 May 2019.
 
 
For further information, please contact:




Paragon Banking Group PLC


 




Richard Woodman, Chief Financial Officer


 




 


 




Tel: 020 7786 8455 / 020 7786 8494


 




 




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