Page 99 - 86395_CCB - 2024 Annual Report (web)

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22 Customers’ accounts £’000 2024 2023
IFRS 9 stipulates that all financial liabilities be Easy access 33,975 33,990
classified at amortised cost, except for those
recognised at fair value through the Income Term and notice accounts
Statement (including derivative contracts). Payable within 1 year 1,013,365 914,629
This includes:
Payable after one year 224,865 207,255
– financial liabilities which have been designated
as Fair Value Though Profit & Loss (FVTPL) Total 1,272,205 1,155,874
on the basis that this provides more relevant Fair value adjustment – (650)
financial information;
for hedged risk
– Financial liabilities which arise when a transfer of Remaining fair value (381) –
a financial asset do not qualify for derecognition adjustment for
(or when the continuing involvement previously hedged risk
approach applies);
Total deposits 1,271,824 1,155,224
– Financial guarantee contracts;
from customers
– Commitments to provide a loan at a below market
rate of interest; or £’000 2024 2023
– Contingent consideration recognised by an Variable rate 529,216 581,987
acquirer in a business combination to which deposit balances
IFRS 3 applies.
Fixed rate deposit balances 742,989 573,887
The Bank has assessed all financial liabilities to
classify and measure them appropriately. As with Total 1,272,205 1,155,874
financial assets, financial liabilities are initially Fair value adjustment – (650)
measured at their fair value, plus or minus any for hedged risk
transaction costs which are directly attributable to
the financial liability. Remaining fair value (381) –
adjustment for
In respect of Customer Deposits, the Bank classifies previously hedged risk
its customer deposits as being held at amortised cost,
which is consistent with the criteria outlined above. Total deposits 1,271,824 1,155,224
from customers
The Bank pays fixed commission to certain brokers
in respect of its deposit accounts. The commission 23 Central Bank Facilities
is charged as a percentage of the customer balance
and is recognised within interest payable. The Bank has drawings of £55m under the Bank of
England Term Funding Scheme for SMEs (‘TFSME’).
Deposits are the Bank’s primary source of These funds were originally drawn in September
debt funding.
2021, have a maturity of four years and bear interest
The Bank’s growth in fixed rate lending in 2024 at bank base rate. The remaining maturity of the
resulted in the fixed rate deposit hedges in‑force at Bank’s drawings is 9 months.
the end of 2023 no longer mitigating Interest Rate The Bank has pre‑positioned loan assets with the
Risk. These hedged relationships were therefore Bank of England for future use in Sterling Monetary
closed out. The fair value adjustment in respect of Schemes. More details are set out in Note 29.
the previously hedged balances at 31 December
2024 was £381k (2023: £650k). This balance is £’000 2024 2023
being amortised over the remaining 16 months of
the previously hedged deposit balances. £95k of TFSME 55,000 65,000
fair value adjustment was charged to the Income Total 55,000 65,000
statement in 2024.