262 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 Additional Information We Are Kenanga Message From Our Leaders Our Sustainability Approach How We Are Governed Financial Statements Shareholders’ Information 47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Capital management The Group and the Bank maintain an actively managed capital base to cover risks inherent in the business. The adequacy of the Group’s and of the Bank’s capital is monitored using, among other measures, the rules and ratios established by the Basel Committee on Banking Supervision and adopted by BNM in supervising the Bank. The primary objectives of the Group’s and of the Bank’s capital management are to ensure that the Group and the Bank comply with regulatory capital requirements and the Group and the Bank maintain strong credit ratings and healthy capital ratios in order to support its business and to maximise shareholders’ value. The Group and the Bank manage its capital structure and makes adjustments to it in light of changes in the economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Group and the Bank may adjust the amount of dividend payments to its shareholders, return capital to its shareholders or issue capital securities. Nevertheless, it is under constant scrutiny of the Board. Capital adequacy The capital adequacy ratios of the Group and of the Bank are computed in accordance with BNM’s revised Risk-Weighted Capital Adequacy Framework. The Bank has adopted the Standardised Approach for Credit Risk and Market Risk, and the Basic Indicator Approach for Operational Risk (Basel II). The minimum regulatory capital adequacy requirements for Common Equity Tier 1 (“CET 1”), Tier 1 and Total Capital are 4.5%, 6.0% and 8.0% of total risk weighted assets. (i) Components of Tier 1 and Tier 2 capital: The capital adequacy ratios of the Group and of the Bank are as follows: Group Bank 2022 2021 2022 2021 CET 1 capital ratio 20.936% 20.665% 21.626% 21.332% Tier 1 capital ratio 20.936% 20.665% 21.626% 21.332% Total capital ratio 28.913% 28.291% 30.682% 29.827% After deducting interim dividends * CET 1 capital ratio 19.231% 17.860% 19.687% 18.198% Tier 1 capital ratio 19.231% 17.860% 19.687% 18.198% Total capital ratio 27.231% 25.523% 28.775% 26.741% * Refer to interim dividends declared subsequent to the financial year end.
RkJQdWJsaXNoZXIy NDgzMzc=