KENANGA ANNUAL REPORT 2020

247 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY (CONT’D.) Capital adequacy (cont’d.) (i) Components of Tier 1 and Tier 2 capital (cont’d.): Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 CET 1 capital/Tier 1 capital Paid-up share capital 246,249 246,249 246,249 246,249 Retained profits 617,832 531,811 594,296 532,338 Other reserves 146,215 143,219 193,924 194,372 Less: Goodwill (240,782) (243,754) (252,909) (252,909) 55% of cumulative gains on financial investments at FVOCI (8,754) (3,568) (8,391) (5,777) Deferred tax assets (14,283) (2,955) (8,722) - Other intangibles (81,585) (73,633) (71,485) (67,803) Regulatory reserve (18,661) (25,444) (18,661) (25,444) Treasury shares (10,458) (16,990) (10,458) (16,990) Other CET 1 regulatory adjustments specified by BNM 4,275 - 3,419 - Deduction in excess of Tier 2 * (96,798) (80,442) (166,170) (166,170) Total CET 1/Tier 1 capital 543,250 474,493 501,092 437,866 Tier 2 Capital Subordinated obligations capital 122,000 25,000 122,000 25,000 Collective allowance and regulatory reserve 18,657 16,752 18,702 17,151 Total Tier 2 capital 140,657 41,752 140,702 42,151 Total Capital 683,907 516,245 641,794 480,017 * The portion of regulatory adjustments not deducted from Tier 2 (as the Group and the Bank does not have enough Tier 2 to satisfy the deduction) is deducted from the next higher level of capital; as per paragraph 31.1 of the BNM’s Capital Adequacy Framework (Capital Components).