KENANGA ANNUAL REPORT 2020

226 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 27. SHARE CAPITAL (CONT’D.) The shareholders of the Bank, via an ordinary resolution passed at the Annual General Meeting held on 11 June 2020, had approved its plan to purchase its own shares up to 10% of existing total issued and paid-up share capital. During the financial year, the Bank did not buy back any ordinary shares (2019: 310,000 at an average price of RM0.5786) from the open market. The earlier share buy-back transactions undertaken in financial year ended 2019 were financed by internally generated funds. As at 31 December 2020, the total number of shares bought was 14,806,800 and were held as treasury shares in accordance with the provisions of Section 127 of the Companies Act, 2016. Accordingly the adjusted issued and paid-up share capital of the Company (excluding 14,806,800 treasury shares) as at 31 December 2020 was RM235,790,270 (2019: RM229,258,908) comprising 707,934,599 (2019: 698,687,499) shares. 28. RESERVES Note Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Non-distributable: Capital reserve 88,938 88,938 153,863 153,863 Fair value reserve (a) 15,916 6,488 15,256 10,505 Exchange reserve (b) 16,556 17,789 - - Regulatory reserve (c) 18,661 25,444 18,661 25,444 ESS reserve 6,144 4,560 6,144 4,560 146,215 143,219 193,924 194,372 Distributable: Retained profits 617,832 531,811 594,296 532,338 764,047 675,030 788,220 726,710 The nature and purpose of each category of reserves are as follows: (a) Fair value reserve is in respect of unrealised fair value gains and losses on financial investments at FVOCI, net of tax. (b) The exchange reserve represents foreign exchange differences arising from the translation of the financial statements of the associated companies. (c) Regulatory reserve is maintained in addition to the impairment allowance for non-impaired credit exposures that has been assessed and recognised in accordance with MFRS in compliance with BNM requirements.