Updated July 31, 2023
Overview of Banks in Brunei
The Banks of Brunei can be classified into two major categories: conventional and Islamic. Among these, Islamic banks have a dominant presence in the market.
The Finance Ministry of Brunei effectively monitors and controls the banking system in the country, overseeing key entities such as the Brunei Investment Agency and the Department of Financial Services (which serves as the 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 is 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
10 topmost banks serve more than 400,000 citizens of Brunei.
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. Further, it also offers automated insurance renewal, vehicle financing via hire purchase, treasury services, unit trust services and online trading, over and above 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 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 formed in 2005 through the merger of two banks in Brunei: the Islamic Development Bank of Brunei and the Islamic Bank of Brunei. Its headquarters is 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 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 about 900 employees and caters to 200,000 customers.
3. Perbadanan Tabung Amanah Islam Brunei
Perbadanan Tabung Amanah Islam Brunei is one of the oldest and was founded in 1991. Its headquarters is situated in Bandar Seri Begawan, Brunei Darussalam. With 8 branches, the bank provides services such as term deposits, savings, home improvement financing services, and retain financing services like motor vehicle loans, home loans etc. Perbadanan Tabung Amanah Islam Brunei Act incorporates this bank as a 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).
4. Maybank
Maybank was founded in 1960, headquartered in Kuala Lumpur, Malaysia. The bank provides financial products and services related to commercial banking, e.g. personal financing, deposits, 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 headquarters is in Malaysia. DCB Holdings Berhad was established as a public limited company in 1994 and later underwent rebranding, adopting the name RHB. RHB Bank provides services such as credit facilities such as the 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 clients. It has handled around MYR230.21 billion of the total assets. RHB Bank 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 about 14,790 employees.
6. CIMB Brunei
CIMB Brunei was established in 1924 (it went through many mergers later), and its headquarters are in Kuala Lumpur, Malaysia. CIMB Brunei provides 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 of RM19.51 billion, while the net profit was RM4.6 billion in 2017.
7. Standard Chartered Bank
Standard Chartered Bank, a member of the Standard Chartered Group, was established in 1958. In 2008 and 2009, they received the prestigious accolade of Best Retail Bank in Brunei, recognizing their exceptional performance during their 50th operational year in the country. 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 of $114.62 billion, while the net profit was $19.11 billion in 2018.
8. HSBC Brunei
According to the recent notification, HSBC Brunei closed its operations in 2017. Being incorporated in 1947, HSBC Brunei is recognized as one of the oldest foreign banks operating in Brunei.
9. Bank of China, Brunei
Bank of China, Brunei, has been recently established, and its headquarters is in China. This was the first time a Chinese company launched 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 of HK$15.41 billion, while a net profit of RMB184.986 billion in 2017.
10. UOB Bank
Previously United Overseas Bank Limited i.e. UOB bank, operated with only two branches. On 20th October 2015, United Overseas Bank Limited i.e. Baiduri Bank Berhad, overtook UOB Bank’s retail banking segment. That acquisition included acquiring all retail banking services and all of its assets. The group reports $359 billion in total assets and gross revenue of $5.528 billion, while a net profit of $3.40 billion in 2017.
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