Baiduri Bank maintained its long-term credit rating of A-/A-2 with Stable Outlook from Standard & Poor’s (S&P) Global Rating in July 2023.
This achievement marks the second year running where the bank achieved an A- rating.
According to S&P, the credit rating is two notches higher than the stand-alone credit profile which can be attributed to a strong business position in the country and a very strong capital and earnings rating.
The rating reflects S&P’s expectation that the bank will maintain its sound business stability and franchise, maintaining about 20 per cent of the banking system’s deposits and having the second-largest branch and ATM network in the country.
S&P also cited that the bank’s retail business is likely to grow on the back of digitalisation of customer onboarding and servicing, as well as the development of wealth management and insurance products.
According to Baiduri Bank’s Chief Executive Officer Ti Eng Hui, “We have a professional management team that focuses on corporate banking, retail banking, consumer financing and securities trading and investments. Through our combined expertise and extensive local market knowledge, we are able to strengthen our competitive standing in the country.”
S&P anticipates that the bank will see credit growth of four per cent to five per cent over the next 12 to18 months likely to come from wholesale customers as the government looks to boost the economy and support local firms through contracts from government-linked companies, foreign direct investment projects, energy sector and infrastructure development.
