Annual Report - Ahli United Bank

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Annual Report - Ahli United Bank

Notes to theConsolidated Financial Statements (Contd.)36 CAPITAL ADEQUACY (continued)In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders or issuecapital securities. No changes were made in the objectives, policies and processes from the previous years.The risk asset ratio, calculated in accordance with the capital adequacy guidelines, under Basel II, approved by the Central Bankof Bahrain, for the Group, is disclosed under Pillar III Table 1, which is included in the annual report. The risk asset ratio is 15.1% as of31 December 2009 (31 December 2008: 13.8%)37 DEPOSIT PROTECTION SCHEMECertain customers’ deposits of the Group are covered by deposit protection schemes established by the Central Bank of Bahrain andFinancial Services Compensation Scheme, UK. The schemes apply to all non-bank private sector deposits subject to specific exclusionsmainly relating to maximum deposit amounts, maximum total amount covered in one calendar year and maximum total amount of theDeposit Protection Board’s financial resources. Eligible depositors are covered by the CBB to the extent of lower of 75% of the combinedtotal of eligible deposits held by the depositor and BD 15,000. In the case of AUBUK, the entire amount of the customer deposit is coveredunder the Financial Services Compensation Scheme, subject to a maximum limit of GBP 50,000 per customer. No up-front contributionis currently required under the schemes and no liability is due unless any member bank of the Deposit Protection Scheme is unable tomeet its depository obligations.38 ISLAMIC BANKINGThe balance sheet and statement of income of the Bank’s Sharia’a compliant Islamic branches which are incorporated into the consolidatedbalance sheet and statement of income, are presented below:Balance sheet as at 31 December2009 2008US$ ’000 US$ ’000ASSETSCash in hand 2,828 1,618Due from banks 291,696 -Receivable balances from Islamic financing activities 774,808 95,836Property, furniture and equipment 1,166 1,016Other assets 4,407 150TOTAL ASSETS 1,074,905 98,620LIABILITIESDue to banks 791,590 25,085Customers’ deposits 164,728 3,616Other liabilities 18,099 10,371Restricted investment accounts 13,992 -988,409 39,072Unrestricted investment accounts 59,867 44,2971,048,276 83,369EQUITYBranch capital 14,000 13,963Retained earnings 12,629 1,28826,629 15,251TOTAL LIABILITIES, UNRESTRICTED INVESTMENT ACCOUNTS AND EQUITY 1,074,905 98,620100 AUB Annual Report 2009

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