SABB discloses impact of IFRS9 on balance sheet

The Saudi British Bank (SABB) expects a net decrease of shareholders’ equity at 4.5 percent, following the implementation of IFRS9 Standard as of January 1.

This reduction in shareholders' equity is estimated at SAR 1.5 billion, while total equity reached SAR 33.34 billion at the end of 2017.

The lender said its capital adequacy ratio is likely to decline 1.66 percent, with the related impact to be reflected over five years, as directed by the Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank.

The assessments above imply a point in time estimate rather than forecasts. Actual impact of the new standard could vary significantly from such estimates, the bank said.