Last checked at 20 Mar 2019 07:00
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 |
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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)% |
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Equity | 1,095.9 | 1,073.9 | (22.0) | (2.0)% |
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CET 1 Ratio | 13.8% | 13.5% | (0.3%) |
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Total Capital Ratio | 16.2% | 15.8% | (0.4%) |
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UK Leverage Ratio | 6.4% | 6.3% | (0.1%) |
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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 |
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Richard Woodman, Chief Financial Officer |
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Tel: 020 7786 8455 / 020 7786 8494 |
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