KENANGA ANNUAL REPORT 2017

Group Bank 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Total CET 1/Tier 1 capital 530,842 519,951 465,561 448,738 Tier 2 Capital Subordinated obligations capital 5,000 – 5,000 – Collective allowance and regulatory reserve 13,353 14,320 13,081 13,809 Less: Regulatory adjustments applied to Tier 2 capital (14,732) (14,320) (18,081) (13,809) Total Tier 2 capital 3,621 – – – Total Capital 534,463 519,951 465,561 448,738 * The portion of regulatory adjustments not deducted from Tier 2 (as the Bank does not have enough Tier 2 to satisfy the deduction) is deducted from the next higher level of capital; as per paragraph 31.1 of the BNM’s Capital Adequacy Framework (Capital Components). 47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY (CONT’D.) Capital adequacy (cont’d.) (i) Components of Tier 1 and Tier 2 capital: (cont’d.) Annual Report 2017 31 December 2017 169 notes to the financial statements