KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 291 ANNUAL REPORT 2018 52. OPERATIONS OF ISLAMIC BANKING (CONT’D.) (p) Capital adequacy Group and Bank 2018 2017 RM’000 RM’000 CET 1/Tier 1 capital Islamic banking funds 120,000 120,000 Retained profits 22,375 14,290 Reserves 8,677 7,224 Less: Regulatory reserve (3,335) (1,928) Total CET 1/Tier 1 capital 147,717 139,586 Tier 2 capital Collective allowance and regulatory reserve 3,335 1,862 Total capital 151,052 141,448 Group and Bank 2018 2017 CET 1 capital ratio 40.155% 74.382% Tier 1 capital ratio 40.155% 74.382% Total capital ratio 41.061% 75.374% The breakdown of risk-weighted assets (excluding any deferred tax assets) in the various categories of risk-weights are as follows: 2018 2017 Principal Risk- weighted Principal Risk- weighted RM’000 RM’000 RM’000 RM’000 Group and Bank Credit risk 1,451,588 344,078 809,866 148,960 Market risk - 1,119 - 19,125 Operational risk - 22,673 - 19,577 Total risk weighted assets 1,451,588 367,870 809,866 187,662