Paragon Banking Group PLC

Regulatory Filings • Mar 20, 2019

National Storage Mechanism | Additional information

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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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