Samba discloses impact of IFRS9 on balance sheet

Samba Financial Group has filed a preliminary assessment of the potential impact of the enactment of IFRS9 Standard on its balance sheet.

The lender expects a net decrease of shareholders’ equity by 5 percent from the date of introduction of the standard.

The reduction will be around SAR 2.1 billion, from a total equity of SAR 42.3 billion as at the end of 2017, according to Argaam's internal analysis.

The bank's capital adequacy ratio is set to drop by 0.65 percent.

The assessments above imply a point in time estimate rather than forecasts. Actual effect of the implementation of the standard could vary significantly from this estimate, the disclosing bank said.