Bank Islam Brunei Darussalam Financial Performance and Shareholders

Bank Islam Brunei Darussalam has consistently demonstrated a strong financial performance, with a stable and growing presence in the Brunei banking sector. The bank's assets have increased significantly over the years, reaching BND 4.3 billion in 2020.

The bank's shareholders have also seen a significant return on investment, with a dividend payout ratio of 30% in 2020. This indicates a commitment to distributing profits to shareholders while maintaining a healthy balance sheet.

Bank Islam Brunei Darussalam is a leading Islamic bank in Brunei. It was established in 1998.

The bank was founded by the Ministry of Finance, with the aim of providing Shariah-compliant financial services to the public.

Bank Islam Brunei Darussalam offers a range of financial products and services, including current and savings accounts, credit cards, and personal loans.

The bank has a strong presence in Brunei, with a network of branches and ATMs across the country.

It has also received numerous awards and recognition for its excellent service and innovative products.

Additional reading: Is Bank Interest Haram in Islam

Bank Islam Brunei Darussalam's governance structure is headed by a Board of Directors, comprising of experienced professionals with a deep understanding of the banking industry.

The bank's Shariah Governance Framework is overseen by a Shariah Advisory Council, which ensures that all financial transactions and operations comply with Islamic principles.

The bank's Risk Management framework is robust, with a dedicated team in place to identify, assess, and mitigate potential risks to the bank's operations.

The senior leadership of the organization is comprised of experienced individuals who have been in their roles for several years.

Junaidi bin Haji Masri has been the Managing Director and CEO since 28 July 2022, bringing a wealth of knowledge and expertise to the position.

Mohd Amin Liew bin Abdullah has been the Chairman since 30 January 2018, providing guidance and oversight to the organization.

Here is a list of the senior leadership team:

The list of former chairmen is a crucial part of understanding the governance structure. Haji Abdullah bin Haji Bakar served as chairman from 2006 to 2010.

Here are the former chairmen in a concise list:

Their leadership played a significant role in shaping the organization's direction.

Bank Islam Brunei Darussalam (BIBD) has a strong financial foundation, with a Tier-1 capital ratio of 18.4% for 2023, which is a testament to its sound profitability and effective capital management practices.

This robust capitalisation enables the bank to absorb potential financial shocks and support continued growth and stability. BIBD's ability to maintain high capital levels is due to its focus on low-cost savings and demand deposits (CASA), which supports its liquidity.

The bank's stable deposit base and strong liquidity position are pivotal to its operations, making it a reliable financial institution in Brunei.

BIBD's shareholders have access to information on the bank's financials, operations, and enterprises through the bank's website, which is updated regularly.

The bank is owned by various entities, including the Sultan Haji Hassanal Bolkiah Foundation and around 6,000 private Bruneian investors.

The government of Brunei holds the largest share through the Brunei Investment Agency (BIA) and the Ministry of Finance and Economy (MoFE).

The four largest shareholders of BIBD as of 2020 are:

Bank Islam Brunei Darussalam has retained its A- (Stable) rating from S&P Global, a testament to its strong corporate governance and risk management practices.

This rating is a result of the bank's robust capitalization, sound profitability, and dynamic capital management. BIBD's very strong capital buffers ensure its ability to absorb potential financial shocks and support continued growth and stability.

BIBD's Tier-1 capital ratio is an impressive 18.4% for 2023, a clear indication of the bank's ability to maintain high capital levels. This is due to sound profitability and effective capital management practices.

The bank's stable deposit base and strong liquidity position are pivotal to its operations, supported by its focus on low-cost savings and demand deposits (CASA). This approach enables BIBD to maintain a strong liquidity position.

BIBD's commitment to environmental, social, and governance (ESG) principles is evident in its Sustainability Framework Roadmap. The bank strives to integrate sustainable banking practices and responsible financing into its operations.

Bank Islam Brunei Darussalam offers a range of Shariah-compliant investment products, including Unit Trust Funds and Shariah-compliant savings accounts.

These products are designed to provide customers with a safe and profitable way to grow their wealth, while aligning with Islamic values.

The bank's Unit Trust Funds have a minimum investment amount of BND 1,000 and offer a range of investment options, including equity, balanced, and fixed income funds.

The bank's Shariah-compliant savings accounts, on the other hand, offer competitive interest rates and a range of benefits, including access to a network of ATMs and online banking services.

The bank's investment products are managed by experienced fund managers who have a deep understanding of the local and global markets.

The bank's Shariah-compliant investment products are certified by the Shariah Advisory Council of the Central Bank of Brunei Darussalam, ensuring that they meet the highest standards of Islamic finance.

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Bank Islam Brunei Darussalam (BIBD) recently hosted a Hari Raya gathering dubbed ‘Gema Syawal’ for its guests and stakeholders at The Empire Brunei.

The event was attended by over 2,500 individuals, including ministers, deputy ministers, permanent secretaries, senior government officials, foreign dignitaries, and prominent business and public figures.

The attendees enjoyed the festivities and personal engagements with BIBD senior management and key personnel.

Gema Syawal was led by Managing Director and CEO Junaidi Haji Masri along with BIBD’s senior management team as well as staff and personnel of the bank.

BIBD took a step further in demonstrating its commitment to the community by presenting donations to three impactful non-governmental organisations.

The NGOs recognized for their outstanding work were Yayasan Sultan Haji Hassanal Bolkiah, SMARTER Brunei, and BIBD ALAF.

A significant portion of the donated funds came from the highly successful BIBD Ramadhan Eco Bazaar, launched in the first week of Ramadan 2024.

The bazaar provided a platform for local businesses to showcase their products and services, fostering entrepreneurship and growth.

The donations focused on causes close to the bank’s values: entrepreneurship, sustainability, and community development.

BIBD’s ethos of “Bruneian at Heart” was highlighted through its commitment to supporting the community and promoting local businesses.

BIBD Group has a range of wholly-owned subsidiaries that expand its reach beyond main banking services.

BIBD At Tamwil Bhd offers Islamic hire purchase options, making it easier for customers to purchase vehicles and other items.

A subsidiary, BIBD Securities Sdn Bhd, provides brokerage services and Islamic wealth management solutions for international stocks listed on the Singapore and Kuala Lumpur stock exchanges.

BIBD Securities Sdn Bhd also offers Islamic wealth management solutions for local BIBD shares.

Takaful Brunei Am and Takaful Brunei Keluarga, subsidiaries of Syarikat Takaful Brunei Darussalam, play a crucial role in providing General and Family Takaful services.

BIBD (Middle East) Limited operates as a wholly-owned subsidiary under the regulation of the Dubai Financial Services Authority (DFSA), focusing on offering Islamic financial services.

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