SAIB discloses impact of IFRS9 on balance sheet

Saudi Investment Bank (SAIB) expects a net decrease of shareholders’ equity by 4 to 5 percent as of Jan. 1, due to a potential increase in credit impairment provisions as a result of IFRS9 implementation.

The reduction in the bank's shareholders' equity is set to range between SAR 540 million and 675 million, from a total equity of SAR 13.5 billion, by the end of 2017.

The lender said its capital adequacy ratio will be reduced by less than 1 percent.

These assessments imply a point in time estimate rather than forecasts, as the actual impact of the new standard could vary significantly, the bank said.