KENANGA ANNUAL REPORT 2021

335 How We Are Governed Financial Statements Shareholders’ Information Additional Information 52. OPERATIONS OF ISLAMIC BANKING (CONT’D.) (q) Capital adequacy Group and Bank 2021 RM’000 2020 RM’000 CET 1/Tier 1 capital Islamic banking funds 120,000 120,000 Retained profits 55,484 45,650 Reserves 8,481 12,745 Less: Intangible assets (3) (2) 55% of cumulative gains on financial investments at FVOCI (499) (2,771) Regulatory reserve (2,314) (2,442) Total CET 1/Tier 1 capital 181,149 173,180 Tier 2 capital Impairment provision 2,411 2,718 Total Tier 2 capital 2,411 2,718 Total capital 183,560 175,898 CET 1 capital ratio 77.917% 64.539% Tier 1 capital ratio 77.917% 64.539% Total capital ratio 78.954% 65.552% The breakdown of risk-weighted assets (excluding any deferred tax assets) in the various categories of risk-weights are as follows: 2021 2020 Principal RM’000 Risk- weighted RM’000 Principal RM’000 Risk- weighted RM’000 Group and Bank Credit risk 883,247 202,433 897,330 238,272 Market risk - - - - Operational risk - 30,058 - 30,060 Total risk weighted assets 883,247 232,491 897,330 268,332

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