Page 357 - Bank-Muamalat-AR2020

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Our Performance Sustainability Statement Governance Our Numbers Other Information

2.1 INTErNAL CAPITAL ADEquACy ASSESSMENT PrOCESS (“ICAAP”) (CONT’D)
Table 2: Capital structure

Group Bank
31 December 31 December 31 December 31 December
2020 2019 2020 2019
rM’000 rM’000 rM’000 rM’000

Tier-I capital
Share capital 1,195,000 1,195,000 1,195,000 1,195,000
Retained profits 1,392,969 1,193,264 1,384,856 1,186,740
Other reserves
Regulatory reserve 45,411 62,676 45,411 62,676
Unrealised losses on fair value through
other comprehensive income
(“FVOCI”) financial instruments 18,240 18,008 18,240 18,008
Foreign exchange translation reserve (968) (133) (968) (133)

regulatory Adjustment
Less: Regulatory reserve (45,411) (62,676) (45,411) (62,676)
Unrealised losses on fair value through
other comprehensive income
(“FVOCI”) financial instruments (10,032) (9,905) (10,032) (9,904)
Less: Investment property gain (7,496) (5,542) (7,496) (5,542
Less: Deferred tax assets (39,422) (25,827) (39,070) (25,543)
Less: Investment in subsidiaries - - (13,159) (13,159)
Less: Intangible Asset (net of deferred tax liabilities) (14,293) (70,244) (14,080) (70,134)
Total Tier-I Capital 2,533,998 2,294,621 2,513,291 2,275,333

Tier-II capital
Subordinated sukuk 250,000 250,532 250,000 250,532
Collective assessment allowance for non-impaired
financing and regulatory reserve 150,659 127,785 150,659 127,785
Add: Investment property gain 3,373 2,494 3,373 2,494

Total Tier-II Capital 404,032 380,811 404,032 380,811
Total Capital 2,938,030 2,675,432 2,917,323 2,656,144

The capital adequacy ratios of the Bank are computed in accordance with BNM’s Capital Adequacy Framework
for Islamic Banks (Capital Components) and Capital Adequacy Framework for Islamic Banks (Risk Weighted Assets) issued on
4 August 2017 and 2 March 2017 respectively. The Group and Bank have adopted the Standardised Approach for credit risk and
market risk, and the Basic Indicator Approach for operational risk. The minimum regulatory capital adequacy requirement for
Islamic Bank Common Equity Tier I capital, Tier I capital, and Total Capital are 4.5%, 6.0% and 8.0% of total RWA respectively
for the current period (31 December 2019: 4.5%, 6.0% and 8.0% of total RWA).