Page 17 - FIN435 RHB vs BPMB

3. Capital Adequacy Ratio /Risk Weighted Capital Ratio

Capital Adequacy Ratio Graph

38.00% 37.01%
37.00%
36.00%
35.00% 34.17%
34.00% 33.38%
33.00%
32.00%
31.00%
Category 1

2018 2017 2016

The capital adequacy ratio (CAR) is a measurement of a bank's available capital expressed
as a percentage of a bank's risk-weighted credit exposures.. Based on the trend analysis
Bank Pembangunan Berhad has the highest CAR Ratio in 2018 which is 37.45%, compared
to 33.78% in 2017 and 34.59% in 2016. It can be conclude that, the higher the capital
adequacy ratios a bank has, the greater the level of unexpected losses it can absorb before
becoming insolvent.

Core Capital Ratio

Core Capital Ratio

Graph

38.00% 37.01%

36.00%
33.38% 34.17%
34.00%

32.00%

30.00%
Category 1

2018 2017 2016

The core capital ratio is a measurement of a company's financial leverage.. Based on Bank
Pembangunan trend 3 years analysis, it was recorded that the bank has the highest ratio in
2018 which is 31.22%, the second highest in 2016 which is 31.21% and the lowest in 2017
which is 29.54%. The higher the ratio means the higher the company capital fund dependent
towards debt.

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