IFRS 9 capital relief saves Lloyds £768m
Phase-in measures ameliorate CET1 hit of higher loan-loss provisions
Five UK banks saved a combined £2.9 billion ($3.7 billion) of Common Equity Tier 1 (CET1) capital in Q3 thanks to measures intended to soften the blow of the switch to accounting standard IFRS 9. Lloyds reaped the greatest benefit expressed as a percentage of its total capital.
Barclays, Lloyds, HSBC, Santander UK and Standard Chartered are each benefiting from European Union rules that allow banks to phase in the CET1 depletion caused by the switchover to the accounting regime on January 1
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