IFRS 9 charge fails to dent UBS capital
The accounting charge was more that offset by increased earnings, with total CET1 capital increasing by Sfr 0.5 billion
The adoption of a new accounting standard for loans incurred a Sfr 0.3 billion ($0.31 billion) charge to UBS’s common equity Tier 1 (CET1) capital in the first quarter.
IFRS 9 Financial Instruments came into effect at the start of the year, altering the way in which banks reserve for potential loan losses. These reserves are drawn from earnings, reducing the amount available to plump up capital buffers.
The accounting charge was more that offset by increased earnings, with total CET1 capital
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