STOCKHOLM, Jan 19 (Reuters) - Swedish bank SEB will lower its shareholder equity by 8.2 billion Swedish crowns ($1.02 billion), mostly due to new accounting principles, including a 1.9 billion hit in the 2017 fourth quarter results, the bank said on Friday.
Adoption of new accounting principles, called IFRS 9 and IFRS 15, coming into effect at the start of 2018 will lead to a reduction of shareholders capital by 6.0 billion crowns.
Other items affecting comparability negatively, mainly transformation costs from the German business and IT write-downs, will amount to 1.9 billion crowns before tax and 1.7 billion crowns after tax in the fourth quarter 2017.
“The business outlook remains unchanged and SEB remains committed to the financial targets including a capital buffer of around 150 basis points, and the cost cap of 22 billion crowns for 2018,” SEB said in a statement.
In total, it will lead to a decrease of the capital buffer by about 0.5 percentage point.
$1 = 8.0149 Swedish crowns Reporting by Johan Ahlander; Editing by Edmund Blair