Riyad Bank’s equity falls SAR 2.12 bln in Q1 on IFRS9
14/05/2018 Argaam Special
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Riyad Bank has reported a drop in its shareholders’ equity by SAR 2.12 billion in Q1 2018, as a result of the application of IFRS 9 standard.
Saudi-based banks applied the IFRS 9 accounting standard as of January 1, 2018, that requires banks to set aside provisions for credit impairment on anticipation of customer default, not when actual default happens.
Impact of IFRS (9) (SAR mln)
Closing bal. as of Dec. 31,2017 as per IFRS (39)
Expected credit losses
Reclassifications according to new standards
Opening bal. as of Jan. 1, 2018 as per IFRS (9)
The standard has a direct impact on banks' solvency positions and shareholders' equity.
Impact of IFRS (9) on Shareholders Equity* (SAR mln)