KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 282 KENANGA INVESTMENT BANK BERHAD 52. OPERATIONS OF ISLAMIC BANKING (CONT’D.) (d) Statements of changes in Islamic banking funds For the financial year ended 31 December 2018 Non- distributable Distributable Islamic banking fund Fair value reserve/ (deficit) Regulatory reserve ESS reserve Capital reserve* Retained profits Total Group and Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2018 120,000 48 1,928 - 5,248 14,290 141,514 Impact of adopting MFRS 9 - - - - - (266) (266) At 1 January 2018, restated 120,000 48 1,928 - 5,248 14,024 141,248 Profit for the financial year - - - - - 9,758 9,758 Other comprehensive income for the financial year - 37 - - - - 37 Issuance of shares pursuant to ESOS - - - 9 - - 9 Transfer to regulatory reserve - - 1,407 - - (1,407) - At 31 December 2018 120,000 85 3,335 9 5,248 22,375 151,052 At 1 January 2017 120,000 (649) 1,663 - 5,248 8,568 134,830 Profit for the financial year - - - - - 5,987 5,987 Other comprehensive income for the financial year - 697 - - - - 697 Transfer to regulatory reserve - - 265 - - (265) - At 31 December 2017 120,000 48 1,928 - 5,248 14,290 141,514 * Capital reserve arose from the merger adjustment to reflect the capital restructuring as a result of the group internal reorganisation exercise.