Overview of Banks in Brunei
The Banks of Brunei can be divided into two major groups: Conventional banks and Islamic banks, with the latter dominating the market.
The banking system of Brunei is well monitored and controlled by the Finance Ministry of Brunei, who shall oversee the Brunei Investment Agency and the Department of Financial Services (which is Treasury). The nation’s central bank Brunei Monetary Authority (i.e. AMBD or Autoriti Monetari Brunei Darussalam) is liable for the implementation and formulation of the management of currency, supervision of financial institutions and monetary policies. In Brunei, the banking industry is highly competitive.
The banking sector in Brunei offers 3 sub-categories of banking
- Corporate banking
- Consumer banking
- Institutional banking
Among these 3, consumer banking is on top of generating revenues as its revenue are more than 1/2 of the combined revenue of all the categories.
Further, the banks of Brunei can be subdivided into 2 major subgroups
- Local Banks: Baiduri Bank Berhad, Perbadanan Tabung Amanah Islam Brunei, Perbadanan Tabung Amanah Islam Brunei
- Foreign Banks: RHB Bank, Standard Chartered Bank
There are 10 topmost banks that serve more than 400,000 citizens of Brunei.
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Top 10 Banks in Brunei
Here is a list of the top 10 Banks in Brunei which are as follows:
1. Baiduri Bank Berhad
Baiduri Bank Berhad was founded in 1994 and is the most prominent bank in Brunei. It provides several services such as banking and other financial related services and further it also offers automated insurance renewal, vehicle financing via hire purchase, treasury services, and unit trust services and online trading, over and above to the e-financial services and investment securities. Its headquarter is situated at Bandar Seri Begawan. It has handled around C$3,008.64 million of the total assets. Baiduri Bank Berhad had generated revenue of around B$83.02 million in the year 2017. In the same year, the net income of Baiduri Bank Berhad was around B$50.191 million.
2. Bank Islam Brunei Darussalam
Bank Islam Brunei Darussalam was founded in 2005 following the merger of two banks in Brunei: Islamic Development Bank of Brunei and Islamic Bank of Brunei and its headquarter is situated in Negara Brunei Darussalam. It provides personal, savings accounts, education, corporate and other development financing, investment products, hire purchase financing for consumer products and vehicles, non-life and life insurance products and SMS or mobile banking services to its clients. It has handled around B$9.6 billion of the total assets. Bank Islam Brunei Darussalam had generated revenue of around B$300.39 million in the year 2017. In the same year, the net income of Bank Islam Brunei Darussalam was around B$116.18 million. It employs around 900 employees which cater to 200,000 customers.
3. Perbadanan Tabung Amanah Islam Brunei
Perbadanan Tabung Amanah Islam Brunei was is one of the oldest and is founded in 1991 and its headquarter is situated in Bandar Seri Begawan, Brunei Darussalam. With 8 branches, the bank provides service such as term deposits, savings, home improvement financing services, retain financing services like motor vehicle loan, home loan etc. This bank is incorporated under Perbadanan Tabung Amanah Islam Brunei Act as the corporate body in Brunei Darussalam. The bank has two fully owned subsidiaries, Darussalam Holdings Sendirian Berhad (Haj/Umrah Services, Travel Agent) and Insurance Islam TAIB Sendirian Berhad (Takaful/Insurance).
Maybank was founded in 1960 and its headquarter is situated in Kualalampur, Malaysia. The bank provides service such as financial products and services that are related to commercial banking, For e.g. personal financing, deposits, and business financing etc. In the year 2018, the net income of Maybank was around RM7.52 billion.
5. RHB Bank
RHB Bank was founded in 1965 and its headquarter is situated in Malaysia. RHB was established as a public limited company in 1994 as DCB Holdings Berhad RHB Bank provides services such as credit facilities such as purchase of securities, non-residential mortgages, mortgages, hire purchases, credit cards, and personal loans, as well as deposit collection, investment-related services, remittances, and general and insurance products to its individual clients. It has handled around MYR230.21 billion of the total assets. RHB Bank had generated revenue of around MYR3.5 billion in the year 2017. In the same year, the net income of RHB Bank was around MYR1.95 billion. It employs around 14,790 employees.
6. CIMB Brunei
CIMB Brunei was established in 1924 (it went through many mergers later) and its headquarter is situated in Kuala Lumpur, Malaysia. CIMB Brunei provides services like fund and investment management related services, debt capital markets, investment advisory services, equity capital markets, and project advisory services in Brunei. The group reports RM506.499 billion in total assets and gross revenue RM19.51 billion while the net profit RM4.6 billion in the year 2017.
7. Standard Chartered Bank
Standard Chartered Bank was established in 1958 and is a member of Standard Chartered Group. In 2008 and 2009, on the occasion of completing their 50th operational year in a country of Brunei, they were awarded prestigious Best Retail Bank in Brunei. They provide services to the residents of Brunei, e.g. wealth management services, deposit schemes, credit cards, personal loans, structured deposits, mortgages, etc. It employs around over 300 employees. The group reports $1.392.64 billion in total assets and gross revenue $114.62 billion while the net profit $19.11 billion in the year 2018.
8. HSBC Brunei
As per the recent notification, HSBC Brunei has closed down its operations in 2017 and it was one of the oldest foreign banks in Brunei which was incorporated in 1947.
9. Bank of China, Brunei
Bank of China, Brunei has been recently established and its headquarter is situated in China. This was the first time when a Chinese company got to establish their operations in Brunei as Brunei is politically and strategically strong. However, the group reports HK$2,565.56 billion in total assets and gross revenue HK$15.41 billion while the net profit RMB184.986 billion in the year 2017.
10. UOB Bank
Previously United Overseas Bank Limited i.e. UOB bank was operating with only two branches. On 20th October 2015, United Overseas Bank limited i.e. UOB Bank’s retail banking segment was taken over by the Baiduri Bank Berhad. That acquisition included acquiring of all retail banking services and all of its assets. The group reports $359 billion in total assets and gross revenue $5.528 billion while the net profit $3.40 billion in the year 2017.
This has been a guide to Top Banks in Brunei. Here we have discussed the 10 topmost banks in Brunei with their financial structure. You may also look at the following articles:
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