Bank Islam Brunei Darussalam (BIBD) retained its A- (Stable) rating from S&P Global, reaffirming its position as the largest and one of the most stable banks in the Sultanate.
The rating underscores BIBD’s capitalisation, sound profitability and capital management, which have been pivotal in maintaining its market position and systemic importance within Brunei’s financial sector. The affirmation reflects BIBD’s 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 Syariah-compliant financing further strengthens its market position. BIBD’s strong capitalisation is evidenced by a Tier-1 capital ratio of 18.4 per cent for 2023. The bank’s ability to maintain high capital levels is due to sound profitability and effective capital management practices. The report stated 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.
By retaining the A- (Stable) rating, it is a testament to BIBD’s strong corporate governance and risk management practices.
The achievement reflects the bank’s dedication to excellence and motivates them to continue serving their customers and the community with utmost integrity and credibility.
The accomplishment has been made possible by the efforts and guidance from the Board of Directors, Shariah Advisory Body, management and staff. BIBD’s efforts to support local businesses and the broader Bruneian economy through various financing initiatives, including corporate and small and medium sized enterprises 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.
