Page 100 - 86395_CCB - 2024 Annual Report (web)

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24 Subordinated debt liability
Subordinated debt liabilities are classified as financial liabilities measured at amortised cost. Subordinated
liabilities comprise notes issued by the Bank, as summarised in the following table. Amounts below include
accrued interest and capitalised costs.

£’000 Issue date Call date Maturity date 2024 2023
11.5% fixed rate reset callable British Business Aug 2023 Aug 2028 Aug 2033 4,800 4,751
subordinated notes Bank Investments

The principal terms of the subordinated debt 26 Provisions
liabilities are as follows:
A provision is recognised in the Statement
– Interest: interest on the notes is fixed at an initial of Financial Position when the Bank has
rate until the reset date. On the reset date, the a present legal or constructive obligation
interest rate will be reset and fixed based on a set because of a past event, that can be
margin above a defined market rate. reliably measured, and it is probable that
an outflow of economic benefits will be
– Redemption: the Bank may elect to redeem all, required to settle the obligation. Provisions
but not part, of the notes by exercising its call are determined by discounting the expected
option as specified in the terms of the agreement.
future cash flows at a pre‑tax rate that
– The notes constitute direct, unsecured, and reflects risks specific to the liability.
subordinated obligations of the Bank and rank
at least pari passu, without any preference, £’000 2024 2023
among themselves as Tier 2 capital. The notes Provisions 750 –
rank behind the claims of depositors and other
unsecured and unsubordinated creditors but rank
in priority to holders of Tier 1 capital and of equity During the year the Bank has recognised a
in the Company. provision in respect of the future outcome
of a regulatory review. This provision
25 Other liabilities and accruals includes judgements and estimates for
operational and legal costs and potential
£’000 2024 2023 awards, based on various scenarios using a
range of assumptions. There are currently
Accruals 6,273 6,727
significant uncertainties as to the possible
Lease liability 1,793 1,919 results of the review and as such, the ultimate
financial impact could be higher or lower
Corporation tax – 689
than the amount provided. It is therefore
Other creditors 1,211 982 not practicable to quantify the extent of any
contingent liability.
Total 9,277 10,317
See Note 32 for more details on the lease liability.