Page 86 - 86395_CCB - 2024 Annual Report (web)

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NOTES TO THE

FINANCIAL STATEMENTS

1 Reporting entity 4 Going concern
Cambridge & Counties Bank Limited (referred to as The Financial Statements are prepared on a going
‘the Bank’) is a company incorporated and domiciled concern basis, as the Directors are satisfied that
in the United Kingdom. The Bank is registered in the Bank has the resources to continue in business
England and Wales and has the registered number for a period of at least 12 months from the date
07972522. The registered address of the Bank is of signing these Financial Statements. In making
Charnwood Court, 5B New Walk, Leicester, England, this assessment, the Directors have considered a
LE1 6TE. Cambridge & Counties Bank is a UK Bank wide range of information relating to present and
that specialises in providing lending and deposit future conditions, including future projections
products to Small and Medium Enterprises (SMEs). of profitability, impairment, cash flows and
The Bank is a private company limited by shares. capital resources.
The Board remains confident that the offering
2 Basis of accounting
to the market remains relevant and attractive,
The Bank’s Financial Statements have been prepared and that 2025 will present further opportunities
in accordance with UK‑adopted international to continue to grow customer assets without
accounting standards and with the requirements of strain on the Bank’s capital or liquidity measures.
the Companies Act 2006 as applicable to companies The Bank’s 3‑year strategic plan is updated
reporting under those standards. They have been periodically throughout the year to produce a
prepared under the historical cost convention forward‑looking assessment.
as modified by the revaluation of financial The Directors have a reasonable expectation that
instruments through the Income Statement, and the the Bank has adequate resources to continue in
revaluation of financial instruments through other operational existence for the foreseeable future.
comprehensive income. The Financial Statements The projections for the Bank’s future performance,
are presented in pounds sterling, which is the capital strength and liquidity, for a period more
functional and presentational currency of the Bank.
than 12 months from the date of approval of these
Judgements made by the Directors in the accounts, all show that the Bank has adequate
application of these accounting policies that have resources to meet its regulatory and operational
significant effect on the Financial Statements requirements. Therefore, the going concern
and estimates with a significant risk of material basis of accounting has been used to prepare the
adjustment are discussed in Note 5 to the financial statements.
Financial Statements.
The Directors recognise that the current UK
macroeconomic outlook will continue to evolve
3 Changes in accounting policies
with the timing of reductions in bank base rate
There have been no changes to the Bank’s the greatest uncertainty. The Bank has considered
accounting policies during 2024. these events within its going concern assessment.
The scenarios modelled consider the following
The Bank’s accounting policies are set out within events in particular:
the relevant note to the Financial Statements.
– A faster and deeper reduction in property prices
than already considered in the bank’s base case;
– Lower new business volumes as investors
withdraw from the property market; and

– Increased losses as customers are unable to repay
loans due to higher monthly instalments and
increased rental voids
The Bank’s provisions and loss absorbing capacity
will continue to be assessed as part of the Bank’s
regular stress testing exercises. The Bank models
a range of stress scenarios which include PRA
published stressed scenarios. Lower interest rates
could reduce the Bank’s income growth rate outlook
(even after reduced impairment losses), whilst a
lower rate of inflation could reduce cost growth.