Page 26 - 86395_CCB - 2024 Annual Report (web)

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Shareholders’ funds

£’000 2024 2023

Share capital 44,955 44,955
Convertible loan notes 22,900 22,900

Retained earnings 172,503 147,299
Fair value through other comprehensive income reserve (274) (376)

Total Shareholders’ Funds 240,084 214,778

31 December 2024 31 December 2023

Before After Before After
transitional transitional transitional transitional
Unaudited relief relief relief relief

Risk weighted assets (RWA) £m 980.3 980.3 835.7 841.6
Common Equity Tier 1 ratio (CET1) 21.6% 21.8% 22.5% 22.7%

Tier 1 capital ratio 24.0% 24.1% 25.2% 25.4%
Total capital ratio 24.5% 24.6% 25.8% 26.0%

The Bank has a strong, high quality The Bank’s capital ratios exceeded its
capital base. All the Bank’s shareholder funds regulatory requirements throughout the year.
qualify as Tier 1 capital, with its share capital The Bank’s Common Equity Tier 1 capital
and reserves qualifying as Common Equity ratio (including the impact of the transitional
Tier 1 capital. arrangements) at the 31 December 2024 was
Total shareholders’ funds increased 21.8% (2023: 22.7%). The Bank’s total capital
during the year from £214.8m to ratio (including the impact of the transitional
£240.1m, driven by growth in the Bank’s arrangements) at 31 December 2024 was
retained earnings. 24.6% (2023: 26.0%). The Bank’s Common
The Bank elected to adopt the Equity Tier 1 capital ratio and total capital
June 2020 extension to the IFRS 9 capital excluding the transitional arrangements
transitional relief arrangement announced were 21.6% and 24.5% at 31 December 2024
within the CRR Quick Fix regulations. respectively (2023: 22.5%,25.8%).
This relief ended on 1 January 2025. IFRS 9
transitional relief in 2024 was £1m.
The Bank continues to benefit from its
British Business Bank ‘Enable’ Guarantee
facility. As at the 31 December, £60.5m of
loans were included within the guarantee
facility (2023: £44m). The guarantee, which
for regulatory reporting purposes is treated
as a synthetic securitisation, enables the Bank
to risk weight the loans within the guarantee
at zero percent. This benefit is partially offset
by the cost of the first loss tranche which is
reported as a capital deduction of £2.6m.