Paragon Banking Group PLC IFRS 9 Transition Report (3538T)

TIDMPAG

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 GBP27 million at 1 October 2018. The principal impacts on its balance sheet and capital ratios are set out below:

 
 1 October 2018          IAS 39     IFRS 9    Change   Change 
                          GBPm       GBPm      GBPm       % 
 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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