20th 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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Related Shares:
Paragon Group