Page 359 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR NUMBERS

51. CAPITAL ADEQUACY (CONT’D.)
(a) The core capital ratios and risk-weighted capital ratios of the Bank are as follows: (cont’d.)
Bank
2023 2022
(Restated)
RM’000 RM’000

Computation of capital ratios (cont’d.)
Ratio (%)

CET 1 Capital 11.319% 12.437%
Tier 1 Capital 12.767% 12.437%
Total Capital 17.269% 17.476%

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 year
(2022: 4.5%, 6.0% and 8.0% of total RWA).
(b) Credit risk disclosure by risk weights of the Group and of the Bank as at 31 December, are as follows:

Group
2023 2022
Total Total
exposures exposures
after netting after netting
and credit Total risk and credit Total risk
risk weighted risk weighted
mitigation assets mitigation assets
(Restated) (Restated)
RM’000 RM’000 RM’000 RM’000

0% 12,045,012 - 8,377,752 -
20% 2,414,622 482,924 2,186,952 437,390
35% 3,749,471 1,312,315 3,282,515 1,148,880
50% 1,239,287 619,644 895,404 447,702
75% 3,706,671 2,780,003 3,466,540 2,599,905
100% 17,402,222 17,402,222 14,590,029 14,590,029
150% 95,120 142,679 191,885 287,828
Risk weighted assets for credit risk 40,652,405 22,739,787 32,991,077 19,511,734
Less: Credit risk absorbed by PSIA (126,607) (159,800)
Risk weighted assets for market risk 77,388 23,153
Risk weighted assets for operational risk 1,508,264 1,463,122
Total risk weighted assets 24,198,832 20,838,209

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