Skipton Building Society Q3 2022 Pillar 3 disclosures (6359I)

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RNS Number : 6359I

Skipton Building Society

05 December 2022

RELEASE OF Q3 2022 PILLAR 3 DISCLOSURES

RNS Number: 6359I

Skipton Building Society

LEI 66AGRETLUXS4YO5MUH35

5 December 2022

SKIPTON BUILDING SOCIETY (THE "SOCIETY") RELEASES 30 SEPTEMBER 2022 PILLAR 3 DISCLOSURES WHICH INCLUDE ITS UPDATED CET1 RATIO FOLLOWING FURTHER DEVELOPMENT OF IRB MODELS

The Society announces that a copy of the Pillar 3 Disclosures will be available to view on the Society's website today at https://www.skipton.co.uk/about-us/pillar-3-disclosure.

From 1 January 2022, new regulation applicable to internally developed internal ratings-based (IRB) models resulted in the Society applying an initial temporary model adjustment (TMA) to the Society's regulator-approved IRB model output.

The revised TMA uplifts the expected loss and risk weighted exposure amounts (RWEAs) produced by the incumbent regulator-approved IRB models to the level expected once the models are finalised to meet the new regulation. This adjustment is applied at portfolio level. Until the IRB models are approved by the PRA, the revised TMA remains subject to change and may cause further movements in the capital metrics.

Whilst the revised TMA was not in place at 30 September 2022, it has been applied throughout the Pillar 3 Disclosures as at 30 September 2022 to provide transparency as to the impact of the revised TMA.

As detailed in the Pillar 3 Disclosures, the revised TMA results, as at 30 September 2022, in a reduction in the Society's CET1 ratio to 24.3% (36.5% as at 30 June 2022) and a reduction in the Society's MREL ratio to 29.5% (44.1% as at 30 June 2022). There have not been, and the Society does not expect there to be, any material changes to the risk profile or strategy of the Society as a result of the revised TMA.

Skipton Building Society

The Bailey, Skipton BD23 1DN

Telephone: [phone]

Email: [e-mail]

Website: www.skipton.co.uk

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December 05, 2022 09:49 ET (14:49 GMT)