The banking sector in Brunei remained robust, with banks being able to provide credit flows to the economy while asset quality also improved. The Gross Non-Performing Financing ratio was recorded at 3.3 per cent in 2022 compared to 3.6 per cent in the previous year, Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah said.
“This was similarly reflected in the Group’s performance through its key businesses as profitability and total assets improved during the fiscal year in review,” he said at Bank Islam Brunei Darussalam (BIBD) Group’s annual general meeting (AGM) 2023 yesterday in review of a strong 2022 financial year, during which the group maintained strong returns to its shareholders.
The minister in his capacity as Chairman of BIBD and its Group of Companies said despite challenging global economic environments following the COVID-19 pandemic, the Group was again able to record another encouraging and successful year.
He said, “The past year has been turbulent for the global economy as conflicts, inflation and food supply crises, as well as the tail effects of COVID-19 continued to beset economies throughout 2022.”
“Alhamdulillah, Brunei was able to manoeuvre through the economic impacts of COVID-19, as the country continued to re-adjust and initiative efforts to create additional economic streams,” the minister added.
Despite the challenging environment, the banking industry’s strong capital position has allowed financial institutions and banks to continue to provide their services and support the local economy’s demand for credit, he said.
“Our prudent risk management strategies, coupled with innovative and sustainable digital banking solutions, allowed us to not only weather the challenges but also flourish in this evolving landscape,” the minister said.
In 2022, the BIBD Group posted a gross revenue of BND387 million, earning a net profit of BND175 million. The Group also delivered a 13.5-per-cent Return on Equity (ROE), further boosting returns and value to its shareholders. The BIBD Group launched its Sustainability Framework in 2021 and announced a target commitment of BND2 billion towards sustainability funding by 2030.
“Throughout 2022, we followed this through with relevant and significant actions that reflected this sustainability commitment,” said the chairman.
Last year’s significant highlight was the signing of a memorandum of understanding (MoU) between the Group and the Brunei Darussalam National Council on Climate Change (BNCCC) to cooperate in climate action solutions.
“Insya Allah, the MoU will inspire and spur the group to intensify actions and fortify its commitment towards supporting the nation’s goal of creating a sustainable and valuable ecosystem that will not only benefit the economy but also the society and its environment for generations to come,” the chairman said.
Managing Director and Chief Executive Officer of BIBD Junaidi bin Haji Masri said, “Under the visionary guidance of the BIBD Board of Directors and BIBD Syariah Advisory Body, we have managed to steer BIBD toward a future that not only secures our financial stability but also accomplishes our social and environmental responsibilities.
“The consistent growth in our financial metrics, including assets, deposits, and profits, is a testament to the dedication and expertise of the entire BIBD team. Together, we have not only safeguarded the interests of our shareholders but also ensured that BIBD remains a cornerstone of financial stability in our community,” he added.
During the meeting, shareholders were presented with the financial statements for the year 2022 and approved a final dividend of BND0.174 per ordinary share.
The meeting at The Empire Brunei was attended by members of the BIBD Board of Directors, former members of the BIBD Syariah Advisory Body, shareholders, BIBD senior management team and officials. – James Kon
