Page 19 - FIN435 RHB vs BPMB

3. 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%

31.00%
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 concluded 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%
34.17%
34.00% 33.38%

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.

17