KENANGA ANNUAL REPORT 2019

239 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY (CONT’D.) Capital adequacy (cont’d.) (i) Components of Tier 1 and Tier 2 capital (cont’d.): Group Bank 2019 RM'000 2018 RM'000 2019 RM'000 2018 RM'000 CET 1 capital/Tier 1 capital Paid-up share capital 246,249 246,249 246,249 246,249 Retained profits 531,811 509,888 532,338 513,675 Other reserves 143,219 131,677 194,372 184,114 Less: Goodwill (243,754) (208,754) (252,909) (252,909) 55% of cumulative gains on financial investments at FVOCI (3,568) - (5,777) (1,196) Deferred tax assets (2,955) (6,532) - (3,666) Other intangibles (73,633) (57,468) (67,803) (52,500) Regulatory reserve (25,444) (25,488) (25,444) (25,488) Treasury shares (16,990) (16,808) (16,990) (16,808) Deduction in excess of Tier 2* (80,442) (72,885) (166,170) (156,462) Total CET 1/Tier 1 capital 474,493 499,879 437,866 435,009 Tier 2 Capital Subordinated obligations capital 25,000 25,000 25,000 25,000 Collective allowance and regulatory reserve 16,752 18,447 17,151 18,180 Total Tier 2 capital 41,752 43,447 42,151 43,180 Total Capital 516,245 543,326 480,017 478,189 * The portion of regulatory adjustments not deducted from Tier 2 (as the Group and 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).