Page 360 - Bank-Muamalat-Annual-Report-2021

358 BANK MUAMALAT MALAYSIA BERHAD
OUR LEADERSHIP
OUR STRA
ABOUT US
OUR PERFORMANCE
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE
TEGY
BASEL II
PILLAR 3 DISCLOSURE

2.1 InTernAl cAPITAl ADequAcy AssessMenT Process (“IcAAP”) (conT’D)

Table 2: capital structure
group Bank
31 December 31 December 31 December 31 December
2021 2020 2021 2020
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 1,569,073 1,392,969 1,554,572 1,384,855

other reserves
Regulatory reserve 28,079 45,411 28,079 45,411
Unrealised losses on fair value through
other comprehensive income
(“FVOCI”) financial instruments (40,014) 18,240 (40,014) 18,240
Foreign exchange translation reserve 649 (968) 650 (968)
regulatory Adjustment
Less: Regulatory reserve (28,079) (45,411) (28,079) (45,411)
Unrealised losses on fair value through
other comprehensive income
(“FVOCI”) financial instruments - (10,032) - (10,032)
Less: Investment property gain (8,171) (7,496) (8,171) (7,496)
Less: Deferred tax assets (58,170) (39,422) (58,170) (39,070)
Less: Investment in subsidiaries - - (13,159) (13,159)
Less: Cumulative gains of financing
measured at FVTPL (19,354) - (19,354) -
Less: Intangible Asset
(net of deferred tax liabilities) (61,002) (14,293) (60,701) (14,080)

Total Tier-I capital 2,578,011 2,533,998 2,550,653 2,513,290
Tier-II capital
Subordinated sukuk 500,000 250,000 500,000 250,000
Collective assessment allowance for
non-impaired financing and
regulatory reserve 180,990 150,659 180,990 150,659
Add: Investment property gain 3,677 3,373 3,677 3,373

Total Tier-II capital 684,667 404,032 684,667 404,032
Total capital 3,262,678 2,938,030 3,235,320 2,917,322

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
9 December 2020 and 3 May 2019, 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 (December 2020: 4.5%, 6.0% and 8.0% of total RWA).