KENANGA ANNUAL REPORT 2020

317 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 52. OPERATIONS OF ISLAMIC BANKING (CONT’D.) (q) Capital adequacy Group and Bank 2020 RM’000 2019 RM’000 CET 1/Tier 1 capital Islamic banking funds 120,000 120,000 Retained profits 45,649 33,221 Reserves 12,745 11,283 Less: Intangible assets (2) (12) 55% of cumulative gains on financial investments at FVOCI (2,771) (1,935) Regulatory reserve (2,442) (2,503) Total CET 1/Tier 1 capital 173,179 160,054 Tier 2 capital Impairment provision 2,718 3,151 Total Tier 2 capital 2,718 3,151 Total capital 175,897 163,205 CET 1 capital ratio 64.539% 45.304% Tier 1 capital ratio 64.539% 45.304% Total capital ratio 65.552% 46.196% The breakdown of risk-weighted assets (excluding any deferred tax assets) in the various categories of risk-weights are as follows: 2020 2019 Principal RM’000 Risk- weighted RM’000 Principal RM’000 Risk- weighted RM’000 Group and Bank Credit risk 897,330 238,272 1,359,665 327,481 Market risk - - - - Operational risk - 30,060 - 25,804 Total risk weighted assets 897,330 268,332 1,359,665 353,285