33 Capital Adequacy

Capital management

The primary objective of the Group’s capital management is to ensure that the Group maintains healthy capital ratios in order to support its business, to maximise shareholders’ value and to ensure that the Group complies with externally imposed capital requirements.

The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders or issue capital securities. No changes were made in the objectives, policies and processes from the previous years.


The capital adequacy ratio calculated in accordance with the U.A.E. Central Bank’s guidelines for commercial banks is as follows:

  2018   2017
  AED’000   AED’000
       
Total capital base

761,468

 

941,909

       
Risk weighted assets:      
Statement of financial position items 3,345,886   3,704,632
Off statement financial position exposures

399,786

 

492,477

Total risk weighted assets
3,745,672
 
4,197,109
Total assets ratio (%)

20.30%

 

22.4%