Page 348 - Bank Muamalat_AR24

346 BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2024 (29 JAMADIL AKHIR 1446H)

51. CAPITAL ADEQUACY (CONT’D.)

(a) The core capital ratios and risk-weighted capital ratios of the Group and the Bank are as follows: (cont’d.)
Bank
2024 2023
RM’000 RM’000

Computation of total risk-weighted assets (“RWA”)
Total credit RWA 23,903,796 22,729,923
Less: Credit risk absorbed by profit-sharing investment account (“PSIA”) (117,142) (126,607)
Total market RWA 105,498 77,388
Total operational RWA 1,549,255 1,483,198
Total RWA 25,441,407 24,163,902

Computation of capital ratios
Tier-I capital
Share capital 1,195,000 1,195,000
Retained profits 1,808,257 1,730,764
Other Reserves
Regulatory reserve 145,404 155,747
FVOCI reserve (11,637) (6,966)
Foreign exchange translation reserve 2,974 1,592

Regulatory Adjustment
Deferred tax assets (51,454) (42,389)
Investment property gain (10,493) (8,363)
Regulatory reserve (145,404) (155,747)
Investment in subsidiaries (13,159) (13,159)
Cumulative gains of financing measured at FVTPL (12,655) (17,084)
Intangible asset (net of deferred tax liabilities) (118,973) (104,365)
Total Common Equity Tier-I Capital 2,787,860 2,735,030

Additional Tier 1 Capital

Perpetual Sukuk 350,000 350,000
Total Tier-I Capital 3,137,860 3,085,030

Tier 2 capital
Subordinated sukuk 800,000 800,000
Loss provision and regulatory reserve* 297,333 284,124
Add: Investment property gain 4,722 3,763
Total Tier 2 Capital 1,102,055 1,087,887

Total Capital Base 4,239,915 4,172,917

* Tier 2 Capital comprise collective allowance on non-impaired financing customers and regulatory reserve, subject
to maximum of 1.25% of total credit risk-weighted assets less credit risk absorbed by profit sharing investment
account.