Page 274 - Bank Muamalat_AR24

272 BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2024 (29 JAMADIL AKHIR 1446H)

27. RESERVES

Group
2024 2023
Note RM’000 RM’000

Regulatory reserve (a) 145,404 155,747
Retained profits (b) 1,818,444 1,742,374
Exchange fluctuation reserve (c) 2,973 1,591
Fair value through other comprehensive income (d) (11,637) (6,966)
1,955,184 1,892,746

Bank
2024 2023
Note RM’000 RM’000

Regulatory reserve (a) 145,404 155,747
Retained profits (b) 1,808,257 1,730,764
Exchange fluctuation reserve (c) 2,974 1,592
Fair value through other comprehensive income (d) (11,637) (6,966)
1,944,998 1,881,137

(a) Regulatory reserve

Regulatory reserve is maintained in aggregate, loss allowance for non-credit impaired exposures (commonly known
as Stage 1 and Stage 2 provisions) that has been assessed and recognised in accordance with MFRS Accounting
Standards and which has been transferred from the retained profits, of no less than 1 % of total credit exposures,
net of loss allowances for credit-impaired exposures, in accordance with BNM’s Policy Document on Financial Reporting
for Islamic Banking Institutions issued on 29 April 2022.
(b) Retained profits

The Bank may distribute dividends out of its entire retained profits as at 31 December 2024 under the single tier system.
(c) Exchange fluctuation reserve

The exchange fluctuation reserve represents exchange differences ansIng from the translation of the financial
statements of foreign operations whose functional currencies are different from that of the Group’s presentation
currency.
(d) Fair value through other comprehensive income
This represent the cumulative fair value changes, net of tax, of fair value through other comprehensive income
financial assets until they are disposed of or impaired.