Bank Islam Brunei Darussalam (BIBD) has retained its A- (Stable) rating from S&P Global, reaffirming its position as the largest and one of the most stable banks in Brunei.
This rating underscores BIBD’s robust capitalisation, sound profitability, and dynamic capital management, which have been pivotal in maintaining its strong market position and systemic importance within Brunei’s financial sector. The affirmation reflects BIBD’s very strong capital buffers, which ensure the bank’s ability to absorb potential financial shocks and support continued growth and stability.
According to S&P Global’s report, BIBD continues to hold a dominant franchise as the largest bank in Brunei, supported by its extensive branch and ATM network. The bank’s significant role in providing Shariah-compliant financing further strengthens its market position.
BIBD’s strong capitalisation is evidenced by a Tier-1 capital ratio of 18.4% for
2023. The bank’s ability to maintain high capital levels is due to sound profitability and effective capital management practices.
The report went on to state that the bank’s stable deposit base and strong liquidity position are pivotal to its operations. BIBD’s focus on low-cost savings and demand deposits (CASA) supports its liquidity. According to S&P Global, BIBD’s high systemic importance in Brunei underpins its overall rating.
S&P Global also highlighted BIBD’s commitment to environmental, social, and governance (ESG) principles as highlighted in its Sustainability Framework Roadmap. The bank strives to integrate sustainable banking practices and responsible financing into its operations.
Alhamdulillah, retaining our A- (Stable) rating is a testament to BIBD’s strong corporate governance and risk management practices. This achievement reflects our dedication to excellence and motivates us to continue serving our customers and the community with the utmost integrity and credibility.
This accomplishment has been made possible by the concerted efforts and guidance from the Board of Directors, Shariah Advisory Body, management, and staff. Their relentless efforts have been integral to achieving and maintaining this prestigious rating.
We also wish to express our gratitude to the regulators for their support and guidance, and to all our shareholders, customers, and stakeholders for their unwavering loyalty and patronage.
BIBD’s ongoing efforts to support local businesses and the broader Bruneian economy through various financing initiatives, including corporate and SME financing, are crucial to its growth strategy.
The bank’s focus on productive sectors and sustainable projects ensures that it remains a key driver of economic progress in Brunei. As BIBD continues to innovate and grow, it remains dedicated to fostering economic resilience and contributing to the nation’s overall vision and goals.
THE BRUNEIAN | BANDAR SERI BEGAWAN
