2011 Annual Report - Khaleeji Commercial Bank BSC

KHALEEJI COMMERCIAL BANK BSC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2011
BD 000’s
31. RISK MANAGEMENT (continued)
CAPITAL MANAGEMENT (continued)
The Bank’s regulatory capital position at 31 December was as follows:
31 December 31 December
2011 2010
Total risk weighted assets 429,049 416,941
Tier 1 capital 116,308 118,041
Tier 2 capital 2,207 222
Total regulatory capital 118,515 118,263
Total regulatory capital expressed as a percentage
of total risk weighted assets 27.62 28.36
The Bank has complied with all externally imposed capital requirements throughout the year.
Capital allocation
The allocation of capital between specific operations and activities is primarily driven by regulatory requirements. The Bank’s
capital management policy seeks to maximise return on risk adjusted while satisfying all the regulatory requirements. The
Bank’s policy on capital allocation is subject to regular review by the Board.
32. PROPOSED APPROPRIATIONS
The Board of Directors propose the following appropriations for 2011 which are subject to shareholders approval in the
ensuing Annual General Meeting:
2011 2010
Directors’ remuneration - -
Charity - -
Zakah 214 250
33. COMMITMENTS
The commitments contracted in the normal course of business of the Bank:
2011 2010
Undrawn commitments to extend finance 4,619 13,923
Financial guarantees 7,423 1,667
Commitment to investments 5,655 -
17,697 15,590
Performance obligations
During the ordinary course of business, the Group may enter into performance obligations in respect of certain of its infrastructure
development projects. It is the usual practice of the Group to pass these performance obligations, wherever possible, on to the
companies that own the projects. In the opinion of the management, no liabilities are expected to materialise on the Group at
31 December 2011 due to the performance of any of its projects.
34. SOCIAL RESPONSIBILITY
The Bank discharges its social responsibilities through donations to charitable causes and organisations.
35. COMPARITIVES
Certain prior period amounts have been regrouped to conform to current year’s presentation. Such regrouping did not affect
previously reported profit or equity.
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Annual Report 2011