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Basel III - Capital and Leverage Disclosures
30 June 2022
BURGAN BANK K.P.S.C.
BASEL III - CAPITAL AND LEVERAGE DISCLOSURES
ADDITIONAL CAPITAL DISCLOSURE REQUIREMENTS
1. Common Disclosure Template - Composition of Regulatory Capital
All amounts are in KD 000's | ||
Common Equity Tier 1 capital: instruments and reserves | ||
1 | Directly issued qualifying common share capital plus related stock surplus | 611,583 |
2 | Retained earnings | 123,037 |
3 | Accumulated other comprehensive income (and other reserves) | (14,105) |
4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock companies)
5 | Common share capital issued by subsidiaries and held by third parties (minority interest) | 10,154 |
6 | Common Equity Tier 1 capital before regulatory adjustments | 730,669 |
Common Equity Tier 1 capital: regulatory adjustments | ||
7 | Prudential valuation adjustments | |
8 | Goodwill (net of related tax liability) | 8,774 |
9 | Other intangibles other than mortgage-servicing rights (net of related tax liability) | 9,640 |
10 Deferred tax assets excluding those arising from temporary differences (net of related tax liability)
11 Cash flow hedge reserve | 17,148 |
- Shortfall of provisions to expected losses (based on Internal Models Approach, if applied)
- Securitisation gain on sale
- Gains and losses due to changes in own credit risk on fair valued liabilities
- Defined benefit pension fund net assets
16 Investments in own shares (if not already netted off paid-in capital on reported balance sheet) | 1,742 |
- Reciprocal cross holdings in common equity of banks, Fis and insurance entities
- Investments in the capital of banking, financial and insurance entities that are outside the scope
of regulatory consolidation, net of eligible short positions , where the bank does not own more | - |
than 10% of the issued capital (amount above 10% threshold of bank's CET1 capital) |
- Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold)
- Mortgage servicing rights (amount above 10% threshold of bank's CET1 capital)
- Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
- Amount exceeding the 15% threshold
- of which: significant investments in the common stock of financials
- of which: mortgage servicing rights
- of which: deferred tax assets arising from temporary differences
- National specific regulatory adjustments
- Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
28 | Total regulatory adjustments to Common Equity Tier 1 | 37,304 | ||
29 | Common Equity Tier 1 capital (CET1) | 693,365 | ||
Additional Tier 1 capital: instruments | ||||
30 | Directly issued qualifying Additional Tier 1 instruments plus related stock surplus | 153,350 | ||
31 | of which: classified as equity under applicable accounting standards | 153,350 | ||
32 | of which: classified as liabilities under applicable accounting standards | |||
33 | Directly issued capital instruments subject to phase out from Additional Tier 1 | |||
34 | Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by | 1,701 | ||
subsidiaries and held by third parties (amount allowed in group AT1) | ||||
31 |
BURGAN BANK K.P.S.C.
BASEL III - CAPITAL AND LEVERAGE DISCLOSURES
35 | of which: instruments issued by subsidiaries subject to phase out | |
36 | Additional Tier 1 capital before regulatory adjustments | 155,051 |
Additional Tier 1 capital: regulatory adjustments
- Investments in own Additional Tier 1 instruments
- Reciprocal cross holdings in Additional Tier 1 instruments
- Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions , where the bank does not own more than 10% of the issued capital (amount above 10% threshold of bank's CET1 capital)
- Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions
- National specific regulatory adjustments
- Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
- Total regulatory adjustments to Additional Tier 1 capital
44 | Additional Tier 1 capital (AT1) | 155,051 |
45 | Tier 1 capital (T1 = CET1 + AT1) | 848,416 |
Tier 2 capital: instruments and provisions | ||
46 | Directly issued qualifying Tier 2 instruments plus related stock surplus | 153,350 |
47 | Directly issued capital instruments subject to phase out from Tier 2 | |
48 | Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by | 2,309 |
subsidiaries and held by third parties (amount allowed in group Tier 2) | ||
49 | of which: instruments issued by subsidiaries subject to phase out | |
50 | General provisions included in Tier 2 capital | 74,174 |
51 | Tier 2 capital before regulatory adjustments | 229,833 |
Tier 2 capital: regulatory adjustments
- Investments in own Tier 2 instruments
- Reciprocal cross holdings in Tier 2 instruments
- Investments in the capital of banking, financial and insurance entities that are outside the scope
of regulatory consolidation, net of eligible short positions , where the bank does not own more | - |
than 10% of the issued capital (amount above 10% threshold of bank's CET1 capital) |
- Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions
- National specific regulatory adjustments
57 | Total regulatory adjustments to Tier 2 capital | - | ||
58 | Tier 2 capital (T2) | 229,833 | ||
59 | Total capital (TC = T1 + T2) | 1,078,249 | ||
60 | Total risk-weighted assets | 6,260,316 | ||
Capital ratios and buffers | ||||
61 | Common Equity Tier 1 (as percentage of risk-weighted assets) | 11.1% | ||
62 | Tier 1 (as percentage of risk-weighted assets) | 13.6% | ||
63 | Total capital (as percentage of risk-weighted assets) | 17.2% | ||
64 | Institution specific buffer requirement (minimum CET1 requirement plus capital conservation | |||
buffer plus countercyclical buffer requirements plus D-SIB buffer requirement, expressed as a | 9.0% | |||
percentage of risk-weighted assets) | ||||
65 | of which: capital conservation buffer requirement | 1.0% | ||
66 | of which: bank specific countercyclical buffer requirement | - | ||
67 | of which: DSIB buffer requirement | 1.0% | ||
68 | Common Equity Tier 1 available to meet buffers (as percentage of risk-weighted assets) | 4.1% | ||
National minima | ||||
69 | Kuwait Common Equity Tier 1 minimum ratio | 8.0% | ||
70 | National Tier 1 minimum ratio | 9.5% | ||
71 | National total capital minimum ratio excluding CCY and DSIB buffers | 11.5% | ||
32 |
BURGAN BANK K.P.S.C.
BASEL III - CAPITAL AND LEVERAGE DISCLOSURES
Amounts below the thresholds for deduction (before risk weighting)
72 | Non-significant investments in the capital of other financials | 68,086 |
73 | Significant investments in the common stock of financials | 4,311 |
74 | Mortgage servicing rights (net of related tax liability) | - |
75 | Deferred tax assets arising from temporary differences (net of related tax liability) | 2,780 |
Applicable caps on the inclusion of allowances in Tier 2 | ||
76 | Provision eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach | 182,184 |
(prior to application of cap) | ||
77 | Cap on inclusion of allowances in Tier 2 under standardised approach | 74,174 |
- Provision eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap)
- Cap on inclusion of allowances in Tier 2 under internal ratings-based approach
33
BURGAN BANK K.P.S.C.
BASEL III - CAPITAL AND LEVERAGE DISCLOSURES
2. Reconciliation requirements
The basis for the scope of consolidation for accounting and regulatory purposes is consistent for the Group. In order to provide a full reconciliation of all regulatory capital elements to the balance sheet in the consolidated financial information, a three step approach has been mandated under the Pillar 3 disclosures section of the CBK Basel III framework.
Below table provides the comparison (Step1) of the balance sheet published in the consolidated financial information and the balance sheet under the regulatory scope of consolidation. Lines have been expanded and referenced with letters (Step 2) to display the relevant items of the regulatory capital.
Item
Assets
Cash and cash equivalents
Treasury bills and bonds with CBK and others
Due from banks and other financial institutions
Loans and advances to customers
of which General Provisions (netted above) capped for Tier 2 inclusion
Investment securities
of which goodwill in investment in associate
Other assets
Property and equipment
Intangible assets
of which goodwill
of which other intangibles
Disposal group held for sale
Total assets
Liabilities
Due to banks
Due to other financial institutions
Deposits from customers
Other borrowed funds
Directly issued qualifying Tier 2 instruments plus related stock surplus
Other liabilities
Liabilities directly associated with disposal group held for sale
Total liabilities
Equity
Share capital
Share premium
Treasury shares
All amounts are in KD'000s | |||||||||
Balance sheet as | Under regulatory | ||||||||
in published | |||||||||
scope of | Reference | ||||||||
financial | |||||||||
consolidation | |||||||||
statements | |||||||||
30-Jun-22 | 30-Jun-22 | ||||||||
1,010,202 | 1,010,202 | ||||||||
307,220 | 307,220 | ||||||||
351,315 | 351,315 | ||||||||
4,192,468 | 4,192,468 | ||||||||
74,174 | 74,174 | a | |||||||
661,498 | 661,498 | ||||||||
771 | 771 | b | |||||||
282,344 | 282,344 | ||||||||
157,645 | 157,645 | ||||||||
17,643 | 17,643 | ||||||||
8,003 | 8,003 | c | |||||||
9,640 | 9,640 | d | |||||||
6,980,335 | 6,980,335 | ||||||||
326,253 | 326,253 | ||||||||
7,306,588 | 7,306,588 | ||||||||
616,023 | 616,023 | ||||||||
457,356 | 457,356 | ||||||||
4,158,941 | 4,158,941 | ||||||||
631,524 | 631,524 | ||||||||
153,350 | 153,350 | e | |||||||
236,097 | 236,097 | ||||||||
6,099,941 | 6,099,941 | ||||||||
268,528 | 268,528 | ||||||||
6,368,469 | 6,368,469 | ||||||||
328,781 | 328,781 | f | |||||||
282,802 | 282,802 | g | |||||||
(1,742) | (1,742) | h |
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Disclaimer
Burgan Bank SAKP published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2022 07:53:04 UTC.