Brunei bank is among world?s top 1,000 banks
Source : Asia News Network
14 Jul, 2016
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Bank Islam Brunei Darussalam (BIBD), the sultanate's flagship financial institution, is among the top 1,000 banks in the world, according to a prestigious financial publication.
BIBD has maintained its overall 740th place among the world's biggest banks and had improved on its rankings in the soundness of its capital assets ratio, according to the latest Top 1,000 World Banks report published by The Banker Magazine.
In a press statement issued by BIBD yesterday (July 13), the bank said a high capital/assets ratio ranking reflects BIBD's healthy business model and financial strength. BIBD was ranked 38th in this area, improving on its previous rank of 42nd.
This year, BIBD continues to remain as the only Bruneian bank to represent the nation within the annual listing of the world's top banks, BIBD said.
BIBD also placed 144th in terms of return on assets. BIBD said this shows the bank's efficiency in managing its assets to generate earnings.
Owned by The Financial Times, The Banker magazine was founded in 1926 and began ranking banks in 1970. The Banker is the world's premier banking and finance resource, providing global financial intelligence since 1926.
Earlier, global credit rating firm Standard & Poor's (S&P) has affirmed its A-' long-term issuer credit rating on BIBD owing to its strong market position and financial stability. The A-' rating is the highest for a Bruneian bank and on par with other banks in the region.
S&P also affirmed its A-2' short-term issuer credit rating and the axAA-' long-term and axA-1' short-term Asean regional scale rating on BIBD.
S&P said the rating on BIBD is two notches above the bank's stand-alone credit profile of bbb due to the high likelihood of extraordinary government support for the bank in the event of financial distress.
Our view is based on BIBD's high systemic importance in Brunei and our assessment of the government as highly supportive. Our opinion on BIBD's systemic importance is based on its size and market position as the largest bank in Brunei, S&P said in a report issued July 1.
S&P said BIBD's pre-diversification risk-adjusted capital ratio is expected to remain above 23.
