| Izah Azahari |
GLOBAL ratings agency, Standard & Poor’s (S&P) reaffirmed its credit rating of BBB+/A-2 with stable outlook for Baiduri Bank, placing Baiduri in the company of strong regional and global banks.
The report provided by S&P stated that the stable outlook on Baiduri Bank reflects their expectations that the bank will maintain its high systemic importance in Brunei and that the bank’s financial profile will remain steady due to adequate internal capital accruals amid low to mid-single digit growth over the next 18 to 24 months.
The report further stated that the rating reflects the bank’s strong market share and diversified business in Brunei with a dominant market share of loans and deposits.
Baiduri’s ratio of net loans to customer deposits of 58 per cent remains higher than the industry average of 35 per cent. Baiduri’s liquidity ratios are also stronger than those of several global peers.
Speaking on the achievement, Chief Executive Officer of Baiduri Bank Ti Eng Hui said that this reaffirmed rating shows the bank’s position and capabilities against an international standard.
“This is testament of Baiduri Bank’s strong business model focussing on its three core businesses, retail banking, corporate banking and consumer financing, with sustainable profitability over the last few years,” said the CEO.
He elaborated that in 2018, Baiduri Bank achieved excellent results, with Operating Profit of BND91.7 million, a 38 per cent increase over 2017 while Gross Profit after Tax was BND70.64 million, a 40.75 per cent increase over 2017.
“Total Equity increased by six per cent to BND374 million while Return on Equity increased from 15 per cent to 19 per cent. The Bank’s Capital Adequacy Ratio was 18.75 per cent well above the minimum 10 per cent set by the authorities,” added the CEO.
S&P is the world’s leading provider of credit ratings. With more than one million credit ratings on government, corporate, financial sector and structured finance entities and securities, S&P ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence.