Page 11 - FIN435 RHB vs BPMB

Capital Adequacy Ratio /Risk Weighted Capital Ratio

Capital Adequacy Ratio Graph
38.00% 37.01%

37.00%

36.00% 34.17%
33.38%
35.00%

34.00%

33.00% Category 1
32.00%

2018 2017 2016
31.00%
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. t. Based on

the graph the trend goes upward from the year 2016 to 2018. It’s from 17.41% then
17.50% and last 2018 is 19.21%. the conclusion is the higher the capital adequacy
ratios the greater the level of unexpected loses it can absorb before becoming

insolvent.

Core Capital Ratio

Core Capital Ratio

30.00%
24.24%
25.00%
16.91% 16.50%
20.00%

15.00%
10.00%

5.00%
Category 1
0.00%

2018
2017
2016
The core capital ratio is a measurement of a company's financial leverage. Based on
RHB Bank trend 3 years analysis, it was recorded that the bank has the highest ratio
in 2016 which is 24.24%, the second highest in 2018 which is 16.91% and the lowest
in 2017 which is 16.50%. The higher the ratio means the higher the company capital

fund dependent towards debt.

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