20th Mar 2019 08:58
LONDON (Alliance News) - Paragon Banking Group PLC said Wednesday its transition to the IFRS 9 accounting method will result in an increased impairment provision of about GBP27 million against financial 2018 results.
Paragon said the change to IFRS 9 from IFRS 39 will principally affect its loan impairments.
The lender's financial year ended September 30, for which it reported GBP10.47 billion in mortgage loan assets. The change to IFRS 9 will result in a slight drop in reported mortgage loan assets of GBP10.45 billion.
Commercial lending assets will see a slight drop to GBP1.13 billion, with Idem Capital assets decreasing marginally to GBP519.8 million.
All three changes together result in a total decrease of GBP27.2 million.
Paragon's CET1 ratio will decrease to 13.5% from 13.8% under the new method with the lender's total capital ratio slipping to 15.8% from 16.2%.
Paragon will adopt the impairment requirements in its interim report for the six months ending March 31, expected to be published May 22.
Shares in Paragon Banking were trading flat Wednesday morning at 454.80 pence each.
Related Shares:
Paragon Group