Key facts

Name Bank Islam Brunei Darussalam Berhad (BIBD)
Business Full-service Islamic financial institution
Head Office Lot 159, Jalan Pemancha, Bandar Seri Begawan, BS 8711, Negara Brunei Darussalam
Website www.bibd.com.bn
Total assets BND 6.4b At year end (2013, audited)
Total equity BND 1.1b (2013, audited)
Profit before tax and zakah BND 141.9m (2013, audited)
Capital adequacy ratio 24.3% (2013, audited)

History

BIBD is Brunei’s largest bank and flagship Islamic financial institution. It was formed by the 2005 merger of two earlier local Islamic financial institutions, the Islamic Bank of Brunei and the Islamic Development Bank of Brunei. The Islamic Bank of Brunei was first established in February 1981 as the Island Development Bank and was converted to Brunei Darussalam’s first full-fledged Islamic bank in January 1993. Meanwhile, the Development Bank of Brunei (DBB) started operations on 31st March 1995, later adopting Islamic banking guidelines on 1st July 2000, and renaming itself the Islamic Development Bank of Brunei (IDBB).

In 2013, BIBD embraced its new identity with upgrades in its overall service paradigm delivery and branch design, which depicted the Islamic visual canvas of Brunei Darussalam. This new identity distinctly sets BIBD apart from other financial institutions in Brunei Darussalam, while establishing a service benchmark that truly is “Bruneian at Heart”. The amalgamation of all these efforts places BIBD in a stronger position to deliver its expectations and move forward in the local and international arena.

Shareholders

  • Ministry of Finance, Brunei

  • Sultan Haji Hassanal Bolkiah Foundation

  • Fajr Capital Limited

  • Some 6,000 individual Bruneian investors

Market Reach

BIBD is headquartered in Bandar Seri Begawan, with fifteen branches at strategic locations in Brunei’s four districts, and has the largest network of ATMs in the country. BIBD continues to lead the Brunei market in assets, financings and deposits.

As part of the Bank’s continuous dedication to providing the best banking experience, BIBD has Brunei’s only full-fledged Contact Centre that operates 24-7 in addition to its innovations in its BIBD Mobile and BIBD Online applications. The Bank has also extended the operating hours of several branches to accommodate the different needs of its clientele. All of these are to enable customers to access BIBD’s services anytime and anywhere.

Financial Highlights

BIBD is Brunei Darussalam's premier financial institution. At year-end 2013, the total Group assets stood in excess of B$ 6 billion, with a net profit after Zakat and taxation of B$ 114 million. With a Group tier 1 capital of above B$ 1,110 million and a Total Capital Adequacy Ratio of 24.3%, BIBD has significant capacity to expand its business. BIBD maintains conservative provisioning and write-off policies, and provides a consistent dividend stream to shareholders.

Services

BIBD provides a wide array of Islamic financial services for all its customer segments. In 2013, Consumer Banking contributed the majority of the Bank’s revenue (51%), with Corporate Banking and Institutional Banking contributing 17% and 27% respectively. BIBD is also the first local institution to launch mutual funds domiciled in Brunei Darussalam.

Governance

BIBD is committed in undertaking good corporate governance practices and is fully guided by the Autoriti Monetari Brunei Darussalam (AMBD) along with the national Syariah Financial Supervisory Board (SFSB) and also in conformation to the Company’s Act Chapter 39. The Bank has sound internal control and risk management in place with internationally set standards, especially in its financial, shariah and risk practices.

People

The BIBD Group has over 700 staff. The Bank is constantly raising the bar on the expectations of its services, looking at better ways to create a consistent culture of excellence via our hiring methods, training courses, and staff engagement practices.

In line with its rebranding initiative, BIBD has invested in providing relevant trainings for its staff, to ensure consistency in its service delivery which exemplifies the new customer banking experience. The Bank has also invested enormously in training of its staff to be certified in selected fields such as Institutional Banking, Risk Management, Shariah, and Financial Planning. In 2013, the Human Resources Division implemented a few initiatives as part of their strategic plan, which includes the development of talent pool and career progression path. Another of the Bank’s initiative, The Star Banker Award which was introduced in 2012, rewards high performers and provides recognition to the Bank’s sales, service and support personnel.

The Bank also encourages a work-life balance approach where various initiatives such as team-building activities are organised, to encourage a strong sense of belonging, loyalty and team spirit, through a varied range of recreational and sport activities.

Processes

Provisioning of innovations through BIBD Online and Mobile has allowed significant process improvements for our customers that are moving towards a digitized society, along with better management of queues at branches, as most BIBD transactions can now be performed online.

To further strengthen BIBD’s proposition as Brunei’s premier financial institution, efforts have been made to improve our service delivery which includes changing the nature of our branch banking design to make way for a more personalised concierge approach that exponentially expedites process times, along with adding an ever-caring element through our services. The Bank is also continuously identifying key issues to ultimately maximise service delivery efficiency that improves the overall customer banking experience.

Landmark Transactions

2013 saw BIBD take part in a number of internationally arranged facilities such as Al-Hilal’s US$500m Sukuk where BIBD, as Co-Lead Managers with other multinational Islamic banks, secured a total of US$ 6.3 billion from 220 investors (more than twelve times the offered amount). The Bank was also Joint-Lead Manager for the successful inaugural issuance of Swiber Capital’s SG$150 million Islamic Trust Certificate.

To date, BIBD is the first Brunei institution to develop and launch mutual funds domiciled in Brunei and the only Bruneian bank to have won international mandates from notable Sukuk and financing transactions.

The Bank’s continuous improvement, through the introduction of innovative products and services, was well received by its customers and the public. This was evident from the growth in take-ups and utilization of services that was introduced, which has contributed to the Bank receiving several international recognitions. In 2013, BIBD was presented with prestigious accolades which reflected the success of the Bank’s many initiatives and hard work.

Corporate Social Responsibility (CSR)

BIBD actively supports the welfare of the Bruneian society through the organisation and support of research and development activities, youth empowerment programmes and social causes.

Through our CSR initiatives, BIBD continues to complement the true values and benefits of its products and services to our valued customers. The BIBD CSR is a platform for the Bruneian society, where we provide support to the development of our CSR programme, whilst facilitating the development of commercially innovative businesses for economic sustainability of the community. It is also aimed at building a CSR brand that enhances the quality of life which demonstrates compassion, sincerity and solidarity, while at the same time, extending the brand to the public, creating community that cares.

BIBD, as a corporate sponsor, has also established a five-year working partnership with the Brunei Economic Development Board (BEDB) for the provision of micro-grant schemes to selected entrepreneurs through the Youth Development Resources project. From its inception in 2010 until January 2013, the Programme has successfully supported more than fifty businesses which remain active today. The project’s main objectives were centred on formulating programmes and organizing activities that would help local youths and underprivileged individuals develop their entrepreneurship skills and knowledge, while at the same time promoting the development of micro businesses in Brunei Darussalam.

In addition, BIBD has also rapidly increased its efforts in this domain, with more than 700 active volunteers in 2013 consisting of BIBD employees and members of the public supporting its CSR activities. On the 11th of May 2013, BIBD ALAF (Advocating Life-Long Learning for an Aspiring Future) Programme, a collaboration between BIBD and the Ministry of Education, was launched by Her Royal Highness Paduka Seri Pengiran Anak Isteri Pengiran Anak Sarah.

The Programme, BIBD’s flagship CSR initiative, aims to provide assistance to both underprivileged and orphaned students, helping them progress in their education. The Programme’s sponsorship provides students with access to educational material and learning advancement and welfare support, also extending to mentoring and coaching of the students. The inaugural year saw BIBD sponsoring 62 recipients from all four districts of the country.

Through the ALAF Programme, BIBD hopes to offer its strong support to His Majesty’s 2035 vision of obtaining a 100% level of education for everyone in Brunei Darussalam. This will hopefully help to reduce or alleviate the poverty condition, In sha’Allah, leading Brunei towards a more prosperous and peaceful future, and working towards the development of an educated, highly skilful and successful nation.

Active Subsidiaries & Associate

  • BIBD At-Tamwil Bhd

    A wholly-owned subsidiary, mainly handling the provision of Islamic hire-purchase facilities

  • BIBD Securities Sdn Bhd

    A wholly-owned subsidiary, providing gold investments and brokerage services for both local and foreign Islamic shares listed on the Kuala Lumpur and Singapore stock markets

  • Syarikat Takaful Brunei Darussalam (Associate)

    It provides general and family takaful services through its subsidiaries: Takaful Brunei Am and Takaful Brunei Keluarga

  • BIBD Al-Kauthar Funds DCC Incorporated

    For the provision of fund management services

  • Belait Barakah Sdn Bhd

    For the provision of vessel leasing facilities

Contacts

MD'S Office Muhd Azim bin Hj Abd Razak azim.razak@bibd.com.bn
MD'S Office Ak Ashrin bin Pg Md Zaidi ashrin.zaidi@bibd.com.bn
Media Dk Rodzi Pg Hj Abd Rahman corporate.communications@bibd.com.bn
Media Abang Shairazi Abang Zainuddin corporate.communications@bibd.com.bn