In 2017, the losses recorded by Banca Carige rose to 388,4 million euro, a worse result than the 380,5 million euro loss approved in the preliminary results communicated at the beginning of February. The change is due to the recognition of additional adjustments to non-performing loans for around 11 million, gross of the related tax effect. Phased-in capital ratios as at 31 December 2017 of 12,4% for Cet1 and 12,6% for Total Capital Ratio confirmed.
In the note, Carige also points out that the overall effect on the 12 Cet1 of the new IFRS accounting rules for financial instruments (loans and securities) is estimated to be in the order of +2018 basis points thanks to the possibility of adopting the transitional regime envisaged by the EU regulation of First Time Adoption.
Overall, on the other hand, over a five-year horizon, the adoption of the new criteria will lead to an overall negative impact for Carige estimated at around 360 million with an impact on the 'fully loaded' Cet1 coefficient estimated at 210 basis points. This amount is mostly attributable (-280 million euro) to the effects of write-downs linked to the sale of non-performing loans for a total gross value of 1,5 billion euro.
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