ABMB-Qtr report 311211(Website) - Alliance Bank Malaysia Berhad

ALLIANCE BANK MALAYSIA BERHAD
(88103-W)
(Incorporated in Malaysia)
A33
Capital Adequacy
The capital adequacy ratios of the Bank and the Group are computed in accordance with BNM's revised Risk-
Weighted Capital Adequacy Framework (RWCAF-Basel II). The Bank and the Group have adopted the
Standardised Approach for credit risk and market risk, and the Basic Indicator Approach for operational risk. The
minimum regulatory capital adequacy requirement is 8.0% (31.03.2011: 8.0%) for the risk-weighted capital ratio.
(a)
The capital adequacy ratios of the Bank and the Group are as follows:
BANK
GROUP
31 December 31 March 31 December 31 March
2011 2011 2011 2011
Before deducting proposed dividends
Core capital ratio - 14.63% - 12.40%
Risk-weighted capital ratio - 14.98% - 16.54%
After deducting proposed dividends
Core capital ratio 13.29% 14.09% 11.36% 11.95%
Risk-weighted capital ratio 13.68% 14.44% 15.18% 16.09%
Components of Tier I and Tier II capital are as follows:
BANK
GROUP
31 December 31 March 31 December 31 March
2011 2011 2011 2011
RM'000 RM'000 RM'000 RM'000
Tier I Capital (Core Capital)
Paid-up share capital 596,517 596,517 596,517 596,517
ICPS 4,000 4,000 4,000 4,000
Share premium 597,517 597,517 597,517 597,517
Retained profits 1,155,291 1,148,228 1,220,042 1,194,222
Statutory reserves 601,561 601,561 812,639 786,406
Other reserves - - 10,018 10,018
Non-controlling interests - - 4,875 4,488
2,954,886 2,947,823 3,245,608 3,193,168
Less: Purchased goodwill / goodwill
on consolidation (186,272) (186,272) (302,065) (302,065)
Deferred tax assets (45,459) (75,272) (79,444) (108,808)
Total Tier I capital 2,723,155 2,686,279 2,864,099 2,782,295
Tier II Capital
Subordinated obligations 597,672 600,000 597,672 600,000
Collective assessment allowance 285,474 265,588 368,898 333,466
Total Tier II capital 883,146 865,588 966,570 933,466
Total Capital 3,606,301 3,551,867 3,830,669 3,715,761
Less: Investment in subsidiaries (801,664) (801,664) (3,620) (3,620)
Total Capital Base 2,804,637 2,750,203 3,827,049 3,712,141
The capital adequacy ratios of the Group consist of capital base and risk weighted assets derived from
consolidated balances of the Bank and its subsidiaries.
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