KENANGA ANNUAL REPORT 2019

298 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 52. OPERATIONS OF ISLAMIC BANKING (CONT’D.) (d) Statements of changes in Islamic banking funds For the financial year ended 31 December 2019 Non-distributable Distributable Group and Bank Islamic banking fund RM’000 Fair value reserve RM’000 Regulatory reserve RM’000 ESS reserve RM’000 Capital reserve* RM’000 Retained profits RM’000 Total RM’000 At 1 January 2019 120,000 85 3,335 9 5,248 22,375 151,052 Profit for the financial year - - - - - 10,014 10,014 Other comprehensive income for the financial year - 3,432 - - - - 3,432 Issuance of shares pursuant to ESOS - - - 6 - - 6 Transfer to regulatory reserve - - (832) - - 832 - At 31 December 2019 120,000 3,517 2,503 15 5,248 33,221 164,504 At 1 January 2018 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 * Capital reserve arose from the merger adjustment to reflect the capital restructuring as a result of the group internal reorganisation exercise.