Bank Islam Brunei Darussalam: Annual Report 2017

Transcription

1. ANNUAL REPORT 2017
2. Bank Islam Brunei Darussalam Annual Report 2017 Table of Contents 01 Vision , Mission and Values 02 Management Insights Chairman’s Statement Managing Director’s Foreword 10 About Us Corporate Profile Board of Directors Shariah Advisory Body Management Team Financial Highlights BIBD 2017 at a Glance 26 Business Review Retail Banking Group Corporate Banking Group International Banking Group (IBG) Treasury and Global Markets (TGM) BIBD Subsidiaries Shariah Division Risk Management Compliance Internal Audit Human Resource and Human Capital (HRHC) Finance IT Operations Government Relations and Special Projects Division 46 Corporate Milestones Promoting Brunei Darussalam as an Investment Hub Enhancing Customer Conveniences Spreading Our Wings International Recognition for BIBD Investing in Brunei’s Human Capital Corporate Social Responsibilities Sharing Our Blessings Giving Back to the Country & Community Fortifying Brunei’s Future: BIBD ALAF BIBD ALAF Programme Activities 59 Bank Islam Brunei Darussalam and Its Subsidiaries Financial Statements Year ended 31 December 2017 Vision Serving Brunei through Islamic Solution as its leading financial institution (To be the benchmark Institution and Point of Reference through responsible Fusion of Islamic Values, Real Economy and Finance) Mission To become THE FIRST CHOICE institution for Employees, Customers, Stakeholders Values Integrity Customer Focus Unity of Purpose Excellence 01
3. 02 Bank Islam Brunei Darussalam Annual Report 2017 CHAIRMAN ’S STATEMENT Dear Valued Shareholders, Creating Real Returns Resilient Bruneian Economy Last year we recorded our highest ever final dividend for In shaa Allah, BIBD will also benefit from the expected shareholders at B$0.147 per ordinary share. In that spirit of economic rebound from recovering oil prices in 2018 and continued excellence, the Board has proposed a final dividend beyond. However, the Bruneian Government remains focused of B$0.051 per share for approval at the forthcoming 2018 in its efforts to diversify its economy in order to create annual general meeting. As part of our continued commitment alternative income streams, thereby reducing its dependence to our customers, the final dividend will add to the earlier on oil and gas, and mitigating any future shocks to the economy. interim dividend distribution of B$0.125, which will create a We, in BIBD, have also supplemented national efforts with our total dividend of B$0.176 per ordinary share for the year 2017. SME related initiatives to ensure that we contribute to the The total result is more than B$127 million returned to our development of local budding entrepreneurs. shareholders, an improvement in YoY yield of 11.5% from 7.5% for the Group. The health of the Bruneian banking sector was also commended by the Organisation for Economic Co-operation Brunei Darussalam: A Progressive Islamic Financial Hub and Development which highlighted Brunei Darussalam’s for a Sustainable Future secure banking system above the global average. At the same Alhamdulillah, BIBD is blessed to be in a vibrant economy that time, Brunei Darussalam is also recognised as one of the few emphasises the development of Islamic finance. The progress nations from the region that are above the global average for generation. The exercise resulted in us returning B$0.30 of this is evident as Brunei Darussalam was ranked among the deposit-to-financing ratios. back per ordinary share, totaling to more than B$217 million, top 10 Islamic finance markets, as well as its biggest gainer, Bismillahir Rahmanir Rahim. Assalamualaikum improving our Return on Equity by 3.1% to 10.5% for the Group, in ICD-Thomson Reuters Islamic Finance Development Report Alhamdulillah, despite expected lower national spending, Warahmatullahi Wabarakatuh. and 7.1% to 16.9% for the Bank. 2017’s list of 131 countries with a presence in Islamic finance. Brunei Darussalam saw a reduction in budget deficit of 40% YoY, with a modest return to growth for its GDP. According Alhamdulillah, I am delighted to report a very successful I am also pleased to report that BIBD demonstrated its strength Brunei Darussalam’s key improvements included a 410% to reports by the Asian Development Bank’s (ADB) Asian 2017 year in review in my first message to the shareholders as and resilience with an impressive financial performance in increase in its Awareness Indicator, and a 154% increase in its Development Outlook (ADO) and the International Monetary Chairman of BIBD. I look forward to sharing the progression 2017. We forged ahead, guided by well thought-out strategies, Knowledge Indicator – both reflecting wider acceptance and Fund’s Asia-Pacific Regional Economic Outlook report, Brunei of this leading bank, and working in cooperation with the rest which resulted in the Bank recording a profit after zakat and understanding of Islamic finance. The report attributed this Darussalam is expected to register strong positive growth for of the Board, Shariah Advisory Body, Management and staff tax of B$169.8 million, a 39.1% increase from the previous year. success to the involvement of higher education institutions the year 2018. towards realising the aspirations of both Brunei Darussalam Profit after zakat and tax for the Group was posted at B$116.2 and Islamic finance institutions in supporting Islamic finance and BIBD. million, an increase of 11.5% from the previous year. activities in Brunei Darussalam. The Asian Development Bank also reported that Brunei Darussalam’s economy is showing signs of gradual BIBD Growth, Resilience, and Sustainability Total assets for the Bank grew 2.2% to B$9.2 billion in 2017, This is an accomplishment that I am very proud to report as diversification away from oil and gas. This is evidenced by the BIBD has consistently delivered on its proven track record of propelled by a strong increase in deposits of 4.7%, cementing it shows the high levels of collaboration between the private inflow of Foreign Direct Investment in major infrastructure growth in revenue and earnings. Alhamdulillah, the Group and BIBD’s position as the market leader in Brunei with a sizeable sector, regulators, and government institutions in order to and construction projects across a multitude of industries. At Bank’s net profit for 2017 reported an increase of 11.5% and market share. Total assets for the Group also grew favorably raise the awareness about Islamic finance, benefits of better the same time, the government has taken commendable steps 39.1% respectively, the highest increase ever recorded. At the by 1.1% to B$9.6 billion compared to B$9.5 billion in the financial management and the importance of accelerating to improve Brunei Darussalam’s business climate by lowering same time, total assets increased moderately for both the previous year. financial literacy in Brunei Darussalam. the corporate income tax rate to 18.5% with tax exemptions I would like to take this opportunity to congratulate everyone The resilience of the Bruneian economy has shown, with the We also undertook a capital optimisation strategy last year at BIBD that have contributed to all of the above which strong partnership between all stakeholders involved, we Brunei Darussalam’s performance in the World Bank’s to achieve a more efficient capital structure by returning resulted in us retaining the position as Brunei Darussalam’s can further drive Brunei Darussalam’s ambition to achieve His Doing Business Index has also progressed well with a YoY excess capital to our shareholders via our capital reduction Best Retail Bank for the fifth consecutive year, while also Majesty’s vision of a truly prosperous nation. In this spirit, we improvement of 16 positions to 56th place, demonstrating distribution. This reflects the strong organic capital generation receiving the Best Digital Bank and Best Mobile Banking also look forward to celebrating the Silver Jubilee for BIBD Brunei’s ability to adapt to the changes in the global economy. of our business and capital position, and consistent profit Application awards for 2017. since it first started its operation as an Islamic Bank in 1993. At the same time, the World Economic Forum’s Global Group and Bank. for pioneer industries. 03
4. 04 Bank Islam Brunei Darussalam Annual Report 2017 Competitiveness Report 2017-2018 considered Brunei as the and success of young underprivileged Bruneians by providing In Appreciation Darussalam , the Ministry of Finance, shareholders and our most improved among 13 of 17 East Asia and Pacific economies. them with the educational tools necessary for their progression. I am very thankful to be appointed as Chairman of a very honourable regulators for their continued encouragement progressive Bruneian institution that carries the national flag and support. Commemorating His Majesty’s Golden Jubilee BIBD’s educational initiatives also include financial awareness with sights on the region. I would also like to thank current and 2017 was also a significant year for Brunei Darussalam with programmes designed to equip Bruneians with greater previous Chairman and members of BIBD’s Board of Directors We recognise our responsibility as the leading bank to celebrations in relation to the Golden Jubilee celebration financial literacy in order to help them manage their personal and Shariah Advisory Body for all their guidance, support serve the interests of Brunei Darussalam. As part of BIBD’s of His Majesty the Sultan and Yang Di-Pertuan of Brunei finances better. Our commitment to supporting CSR initiatives and contribution in achieving long-term sustainable success dedication and support to His Majesty the Sultan and Darussalam’s accession to the throne. Brunei also celebrated to bring benefit to our community is one of the core pillars of for Brunei Darussalam’s premier financial institution. The Yang Di-Pertuan of Brunei Darussalam’s Wawasan 2035 and fifty years of currency peg with Singapore. We at BIBD remain our mission to becoming the First Choice amongst all banking Board joins me in congratulating Mr. Mubashar Khokhar, the towards the realization of His Majesty’s desire of a Zikir committed to support His Majesty’s vision of a progressive institutions in Brunei. Managing Director and CEO, along with the management for nation, we will strive to provide our customers and clients their steadfast commitment in driving results and executing with world-class Shariah compliant financial products and BIBD’s strategy. services. and stable nation. Looking Forward Brunei’s Leader in Social Responsibility While we are cognizant of the advantages that FinTech and its In addition to constantly optimizing our customer’s experience ecosystems bring, we must ensure that investments into these On behalf of the Board, our sincere appreciation goes to We stand committed to the vision of driving BIBD forward with BIBD, we also focused on developing the effectiveness technologies remain prudent and bring real life convenience to all employees for their dedication and for their constant as the preferred choice of our customers, and by the grace of our CSR programmes. With this, we truly embodied Brunei our customers, while at the same time ensuring that there is commitment and desire to strive for excellence, all of which of Allah S.W.T., we will continue to contribute meaningfully Darussalam’s Vision or Wawasan 2035 to create a sustainable adequate framework and governance to protect our customers. strengthens BIBD’s position as The First Choice for Bruneians, to our customers, our shareholders, our community, and our making us the premier financial services group in the country. country. dynamic economy that provides better opportunities, and to create a quality of life that is among the best in the world. At the same time, I look forward to seeing the growth of BIBD’s business beyond Brunei Darussalam, and particularly The road ahead will be marked with obstacles and challenges but Wabillahi Taufik Walhidayah Wassalamu ‘Alaikum Our flagship CSR initiative, the BIBD ALAF (Advocating Life- in Singapore and the Middle East. These locations not only with our concerted hard work, determination and team-spirit, we Warahmatullah Hi Wabarakatuh Long Learning for an Aspiring Future) programme champions provide us the opportunity to reinforce income streams for will continue to ensure that the BIBD Group stands firm as an the value of education as an enabler for a better future. BIBD but also showcases our ability to be recognised as part institution we can all be proud of in years to come, In shaa Allah. Currently BIBD ALAF sponsors a total of 170 students. In of a larger global financial ecosystem, especially as part of partnership with the Ministry of Education and Ministry of more developed markets. This in turn will also allow us to My gratitude and sincere appreciation goes to the government Minister of Finance II Religious Affairs, we endeavour to support the development learn and absorb best-practices and international benchmarks. of His Majesty the Sultan and Yang Di-Pertuan of Brunei Chairman, Bank Islam Brunei Darussalam Yang Berhormat Dato Seri Paduka Dr. Awang Haji Mohd Amin Liew bin Abdullah 05
5. 06 Bank Islam Brunei Darussalam Annual Report 2017 We strived to maintain discipline and efficiency in our cost rating - the highest for a Bruneian bank . Throughout 2017, we management exercises and invested prudently to enable demonstrated our unflinching commitment to improve our sustainable growth. While the rising costs of doing business customer’s experience with BIBD - moving it closer to global remains a challenge, we managed to maintain our cost-to- benchmarks. income (CIR) ratio for the Bank at 33.5% - a marginal growth of 0.5%. Healthy returns achieved meant that we recorded a Reinventing Digital Banking return on assets (ROA) of 1.5% for the Group, and 2.0% for the The banking industry, like others, is being challenged by Bank, reflecting strong growth in both areas. new technologies, changing customer expectations and the overwhelming need to create a financially inclusive society. MANAGING DIRECTOR’S FOREWORD Despite a slight reduction in its capital adequacy ratios, BIBD A robust approach to Digital Banking is the need of the hour has historically and consistently maintained this ratio in and a major priority for BIBD. We have responded well to this excess of the minimum regulatory requirement set by Autoriti challenge by redoubling efforts to build a state-of-the-art Monetari Brunei Darussalam (AMBD) and above other global digital banking presence that places the evolving requirements financial institutions. Total capital adequacy ratio was at 17.2% of our customers at the very forefront of our efforts. and 17.7% for the Bank and Group respectively, allowing us to Dear Respected Shareholders, Bismillahir Rahmanir Rahim. Assalamualaikum maintain a resilient capital position to support the execution With their specialised approach, FinTech start-ups are of our strategies. challenging various parts of the financial services value chain. a 7.5% increase for the Bank. In the same financial year, net In such an environment, the future of our industry depends on financing and advances grew by 1.4% to B$3.2 billion, while We are well ahead of the milestones laid out for our First our ability to embrace the digital revolution and completely total deposits grew by 4.2% to B$8.0 billion. Choice strategy - launched two years ago - by constantly re-imagine the banking experience for our customers. At BIBD, Warahmatullahi Wabarakatuh. delivering strong financial performance and support to the though we are cognizant that this requires immense effort and Funding growth remains at the core of our strategy and we Bruneian community. The improvement in the texture of our considerable investment, we remain committed to this journey Alhamdulilah, I am happy to report another successful year saw an encouraging increase of 4.7% in our deposits for the franchise resulted in a group net operating profit YoY increase with the belief that this is also an opportunity to significantly for BIBD, filled with milestones and achievements that has Bank that rose to B$7.8 billion while the Group recorded 4.2% of 5.6% to B$144 million, as all our business segments recorded differentiate ourselves from competitors. By reinventing the continued our progression in both local and international rise in deposits. Profitability for the Bank rose 39.1% to B$169.8 strong performances. Retail banking contributed almost 38% banking landscape through development of digital banking markets. million, compared to B$122.1 million in 2016. Total assets for of our Group total income, while our Corporate Banking infrastructure and ecosystem, BIBD can create a huge impact with significant contributions to the real economy. the Bank increased by 2.2% to B$9.2 billion, while total assets Group, and Treasury & Global Markets both recorded more A Robust Sustainable Franchise from a Resilient Nation for the Group stood at B$9.6 billion, up 1.1%, strengthening our than 20% each. Impressed by the BIBD spirit to overcome challenges, I financial position and cementing BIBD as the largest bank in am heartened to report that all our key business segments Brunei, with a very sizeable market share. posted healthy and positive revenue growth despite market Our focus in creating a customer-focused mobile-led offering Given the challenging operating environment and market will at the same time simplify banking while making it more conditions, we have sustained our prudent and sound relevant and contextual to the needs of customers. By forging challenges. Overall, the Group posted an encouraging total Operating expenses grew 12.4% mainly contributed by staff risk management regime to ensure balanced business alliances with strategic partners in this ecosystem, we hope income of B$331.5 million, an increase of 0.2% from the related expenses, electronic data processing and professional growth. Strong governance and risk management policies to maximise the appeal, effectiveness, and delivery of our previous year, while the Bank reported a very strong income fees. However, this was offset by a strong operating profit of and processes also enabled us to maximise returns to our offering. of B$348.0 million, highlighting a 13.2% growth. One key B$190.8 million and B$144.4 million for the Bank and Group, customers and stakeholders while ensuring that our asset contributor to this performance is the 9.7% growth in net indicating growth of 34.2% and 5.6% growth respectively. The quality remained resilient. fee and commission income that recorded a total of B$27.9 bank remained consistent in its hedging strategy to minimise million. any future currency volatility. Revenue growth was also supported by strong results in our At the same time, BIBD has built on its half of market share of financing, leasing and investment activities that have helped register a 5.6% increase in net profit margin for the Group delivering B$257.8 million and B$213.0 million for the Bank, As part of our values to continuously deliver excellence, we have recently launched our new digital banking platform that All these initiatives have resulted in BIBD receiving seeks to revolutionise the future of banking: BIBD NEXGEN. international accolades which include The Asian Banker’s Harnessing the latest innovations in artificial intelligence, “Best Retail Bank in Brunei 2017” for the fifth consecutive year, virtual reality, machine learning, data analytics and customer total assets. BIBD’s prudent approach has also seen its cost- while also receiving the “Best Digital Bank” and “Best Mobile insights, BIBD NEXGEN underlines our intention to become to-income ratio lower significantly when compared to the Banking Application” awards from World Finance. Through our a pioneer in the digital banking space in order to bring more banking industry in Brunei Darussalam. prudent approach, we have also held onto our A- S&P Global convenience, connectivity, and value to our customers. 07
6. 08 Bank Islam Brunei Darussalam Annual Report 2017 Long Learning for An Aspiring Future ) programme which leaders. In shaa Allah, BIBD will continue to be at the forefront currently supports the development of more than 170 of providing the best solutions and growth opportunities for students, one of whom has just enrolled into the prestigious our customers, and also support to our community. Al-Azhar University, Egypt. At the same time, I would like to welcome four new members With the support of the Ministry of Culture, Youth, and of the BIBD Leadership Forum - our new Chief Financial Officer - Sports, we were honoured with the ASEAN (Association of Tan Pheng Leong, General Counsel - John Joseph Darby, Head of South-east Asian Nations) Rural Development and Poverty Human Capital and Human Resources - Habibah binti Haji Harry, Eradication (RDPE) Leadership Award at the 10th ASEAN and Chief Risk Officer - Edmundo Horacio Uribe Bobadilla. All of Ministerial Meeting on Rural Development and Poverty them have built stellar careers with some of the finest institutions Eradication (AMRDPE). This award recognises the contribution globally, In shaa Allah, their inclusion in the team will further of private sector entities in rural development and poverty enhance the constantly growing pool of talent at BIBD. eradication in the region, while at the same time empowering the people to provide for themselves. In Appreciation My sincere gratitude goes to the government of His Majesty Our CSR philosophy is founded on the three pillars of the Sultan and Yang Di-Pertuan of Brunei Darussalam, the education, entrepreneurship and community. This ensures Ministry of Finance and to our regulators for their continued that we stay committed towards elevating the community in belief and confidence in us. realising Brunei Wawasan 2035. Immense gratitude also goes to our customers, for their BIBD NEXGEN creates a futuristic banking concept that is BIBD has seen an almost 400% growth in transactions made Progressing Ahead continued loyalty and belief in us. Our customers will always mobile-led and customer-centric, whilst providing financial on its digital banking platforms since 2014. This galaxy of We will continue our investments in our digital banking remain our highest priority in everything that we do, and we inclusion for the unbanked and underserved segments BIBD NEXGEN technology will complement its physical prowess, human capital development and better understanding look forward to serving their needs now and in the future. of society. BIBD NEXGEN will unify all of BIBD’s digital infrastructure such as Brunei Darussalam’s largest network of of our customers to ensure that BIBD continues to be a main technologies under one umbrella. This includes technologies branches, ATMs, and contact-centre. contributor to the Bruneian economy. authenticated Mobile Chat capability provided in-app. This Building a Future-ready Workforce Our efforts will redouble as we sustain the national ambition their best. It is certainly my privilege to work with this fine full suite of banking capabilities will then be made more At BIBD, our people are our most important asset. Our to create a diversified economy – insulated from the team and to be guided by our honourable BIBD Chairman of accessible to the public through third-party alliance platforms investment in further innovation and technology must vicissitudes of hydro-carbons pricing in recent times. While the Board, Chairman of the Shariah Advisory Body, and by the that are ‘powered by BIBD NEXGEN’ and will contribute to de- commensurate with the investment we make in developing we will continue supporting Bruneian institutions within honourable members of the Board and of the Shariah Advisory cashing the economy. Brunei Darussalam’s own talent into fully understanding and the oil and gas sector, we will also promote economic Body who have always provided us with their wisdom and harnessing this technology. Therefore, we have placed the diversification to energise other promising sectors. We will encouragement. To all of them, I would like to extend my most Aligned with Brunei Wawasan 2035, BIBD NEXGEN will also utmost importance on recruitment and talent acquisition continue our unflinching support to the development of sincere appreciation. create – through inter-operability and open infrastructures in order to ensure that we not only hire the right skillset to Brunei Darussalam’s MSME and SME sector. – a branchless banking structure by promoting key alliances support our ambitions, but also develop the current talent for BIBD with strategic partners from different industries pool to be prepared for the future of banking. introduced last year such as Brunei Darussalam’s first ever Our accomplishments in 2017 were made possible by the strong and dedicated team at BIBD, who always strive to give – perhaps going beyond Brunei’s shores with regional and I would like to also thank our outgoing Chairman, Yang Mulia Welcoming Our New Chairman and Senior Members Dato Seri Setia Awang Haji Bahrin bin Abdullah for his constant I would like to take this opportunity to welcome our new support and guidance - always putting BIBD’s interest at the forefront, while ensuring our engagement with the community. international partnerships. Not only will this support national As an Islamic bank, we need to continue our pursuit of Chairman of the Board, Yang Berhormat Dato Seri Paduka Dr. priorities by making Bruneians highly skilled in the digital developing our human resources in the facets of our industry. Awang Haji Mohd Amin Liew bin Abdullah, Minister of Finance space, it will also benefit the entire ecosystem with higher To date, we have nearly sixty certified Islamic Planners, of II and new member of our BIBD Shariah Advisory Body, Yang Wabillahi Taufik Walhidayah Wassalamu ‘Alaikum digital adoption and better interconnectivity leading towards which seventeen have advanced to higher qualifications. Mulia Dayang Hajah Noraini binti Haji Buntar. Warahmatullah Hi Wabarakatuh a documented, secure, and digitised economy. Our Success Equates The Success of Our Community We are excited at the prospects created by these new Mr Mubashar Khokhar Providing credence to BIBD’s belief in its NEXGEN platform We take pride in our position as an engaged community appointments and are confident that their wisdom and Managing Director and CEO is the growth it has experienced in the digital banking arena. partner – contributing with our BIBD ALAF (Advocating Life- expertise will build on the foundations laid by our previous Bank Islam Brunei Darussalam 09
7. 10 Bank Islam Brunei Darussalam Annual Report 2017 CORPORATE PROFILE Brunei ’s Leading Financial Institution BIBD, Brunei Darussalam’s largest bank and flagship Islamic Headquartered in Bandar Seri Begawan, we have sixteen continuous hard work, effort and commitment from our financial institution, was formed in 2005 through the merger branches at strategic locations in Brunei Darussalam’s four people that we are able to provide seamless and innovative of Islamic Bank of Brunei and Islamic Development Bank of districts and the largest network of ATMs in the country, services to our customers, and ensure that their banking Brunei. It is an internationally recognised financial institution serving over a quarter of the Bruneian population. Thanks experience with us is unique and best-in-class. governed by global best practices under the guidance of an to BIBD’s presence across the country, we have the largest experienced management team. BIBD is committed to meeting contact centre in Brunei Darussalam along with a digital Since the commencement of our transformative journey, BIBD the needs of our customers from all walks of life through mobile chat capability, and offer our customers convenience has made great strides in the development of its capabilities, continuous service, product and technology innovations. through solutions such as internet and mobile banking. which included upgrades in its overall service delivery and branch design that depict the Islamic visual canvas of Brunei As Brunei’s flagship Islamic bank and largest financial services BIBD is the only bank in Brunei Darussalam that serves all Darussalam. This distinct identity sets BIBD apart from other provider, with more than 900 employees and B$9.6 billion segments within the retail banking market. With a strong focus financial institutions in Brunei Darussalam, while establishing worth of assets under management, we proudly serve more on innovation and excellence, we have been consistently a service benchmark that is truly “Bruneian at Heart”. The than 207,000 customers. Our valued customers include retail, recognised for our dedicated customer service and ability amalgamation of all these efforts places BIBD in a stronger corporate as well as international clients. to deliver value to all our stakeholders. It is also through position to deliver on its aspirations and forge ahead in the local and international arena. Assets more than 900 B$ 9.6 Billion Customers more than 207,000 Employees more than 11
8. 12 Bank Islam Brunei Darussalam Annual Report 2017 Shareholders • Ministry of Finance, Brunei Darussalam • Sultan Haji Hassanal Bolkiah Foundation • Fajr Capital Limited • Approximately 6,000 individual Bruneian investors Bruneian at Heart BIBD is a bank for the people of the nation, built by the people of the nation. Our ethos perfectly captures the essence of inclusiveness in Islamic banking. We provide smart, safe and practical financial services and solutions to our customers regardless of race or religion, ultimately supporting the ambitions of the Bruneian community. BIBD’s long-standing strength of intrinsically and genuinely understanding the aspirations and hopes of Bruneians inspires and enables us to constantly innovate to offer solutions that best fit their needs. Governance BIBD is committed to sound corporate governance and is fully guided by the principles and regulations set forth by the Autoriti Monetari Brunei Darussalam (AMBD), national Syariah Financial Supervisory Board (SFSB) and the Company’s Act Chapter 39. The Bank has strong internal control and risk management in place with internationally benchmarked standards, especially in the financial, shariah and risk management arenas. Active Subsidiaries and Associates • 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, offering Islamic wealth management products and brokerage services for local BIBD shares and foreign securities listed on the Kuala Lumpur and Singapore stock market. • Syarikat Takaful Brunei Darussalam (Associate) It provides General and Family Takaful services through its subsidiaries: Takaful Brunei Am and Takaful Brunei Keluarga. • Better Sdn Bhd A subsidiary fully owned by BIBD At-Tamwil providing car-leasing services. • BIBD (Middle East) Limited A wholly-owned subsidiary of BIBD and an entity regulated by the Dubai Financial Services Authority (DFSA) providing advisory and arranging services in the Middle-East. It also holds an endorsement to operate as a wholly Islamic institution. 13
9. 14 Bank Islam Brunei Darussalam Annual Report 2017 BOARD OF DIRECTORS Yang Berhormat Dato Seri Paduka Dr . Awang Haji Mohd Amin Liew Abdullah, CFA Minister of Finance II Chairman Yang Berhormat Dato Seri Paduka Dr. Awang Haji Mohd Amin Liew Abdullah (“Dato Dr. Amin”) was appointed as Minister of Finance II, on 30th January 2018. Prior to this appointment, Dato Dr. Amin was the Deputy Minister of Finance (Investment), while holding the CEO position of Darussalam Assets Sdn Bhd (“DA”), an investment holding company owned by the Minister For Finance Corporation, Brunei Darussalam. Before joining DA, Dato Dr. Amin held several key positions within the Bruneian Government, including being appointed as the Permanent Secretary of the Ministry of Finance, the Permanent Secretary of the Ministry of Industry and Primary Resources and the Managing Director of the Brunei Investment Agency. Prior to his tenure with the Bruneian Government, Dato Dr. Amin worked as a Crude Oil Trader for Brunei Shell Petroleum Co. Sdn Bhd in the mid-nineties after returning from the United Kingdom where he worked for ICI Finance PLC as a research analyst in the late eighties/early nineties. Dato Dr. Amin currently serves on the boards of many Bruneian Government linked companies in diverse sectors including telecommunications, medical services, hospitality, aviation, oil and gas, information technology and education. Dato Dr. Amin graduated with a First Class Bachelor’s Degree from Queen Mary College, University of London in 1984 and both a Master’s degree in 1989 and a PhD in 1993 from Imperial College, University of London. Dato Dr. Amin holds a professional qualification as a Chartered Financial Analyst (CFA) since 2004. He is also a member of CFA Singapore. Yang Mulia Awang Junaidi bin Haji Masri Managing Director, Brunei Investment Agency (BIA) Director Yang Mulia Awang Junaidi bin Haji Masri is currently the Managing Director of BIA. He was previously the Director and Head of Venture Capital and Strategic Investments, managing BIA’s investments globally. He also serves the Fajr Capital Board of Directors as a representative of the Government of Brunei Darussalam. Awang Junaidi holds a BSc Degree in Computer and Management Sciences from Keele University, United Kingdom. Yang Mulia Dato Paduka Iqbal Ahmad Khan Chief Executive Officer, Fajr Capital plc Director Yang Mulia Dato Iqbal Ahmad Khan is the Chief Executive Officer of Fajr Capital. He is also a member of the Board of Directors of Bank Islam Brunei Darussalam, GEMS Education, Jadwa Investment, MENA Infrastructure and National Petroleum Services. Prior to Fajr Capital, Dato Iqbal was the founding CEO of HSBC Amanah, the global Islamic financial services division of the HSBC Group. He is a long-time advocate of the Islamic financial services industry, serving as an advisor to government initiatives in Brunei Darussalam, Malaysia, Saudi Arabia, UAE, and the UK. He holds a Master’s degree in Political Science and International Relations and a BSc (Hons) in Physics and Chemistry, both from Aligarh Muslim University. He is the recipient of several industry and global accolades, including the Royal Award for Islamic Finance, a biannual prize presented by HM the King of Malaysia; the State Award of “The Most Honourable Order of the Crown of Brunei” from His Majesty the Sultan of Brunei Darussalam; and a Lifetime Achievement Award presented by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister of the UAE and Ruler of Dubai. Yang Mulia Dr. Jan Hendrik (Hennie) van Greuning Director Yang Mulia Dr. Hennie van Greuning serves as an independent non-executive Director on the BIBD Board of Directors. He was previously a Senior Advisor in the World Bank Treasury, focusing on Operational Risk Management in the Treasury environment, as well as Islamic Banking issues. He was a member of the Board of FirstRand Limited (a listed bank holding company in South Africa), for nine years, until November 2017. Dr. Hennie taught a Master’s class in Finance at George Washington University for several years and has co-authored six editions of the World Bank’s publication on International Financial Reporting Standards: A Practical Guide. He has also co-authored books on conventional as well as Islamic banking risk. His publications have been translated into more than 15 languages. He is a CFA (Chartered Financial Analyst) charter-holder and qualified as a Chartered Accountant in both South Africa and Canada. He holds Doctorate Degrees in both Accounting Science and Monetary Economics. Yang Mulia Majeed Nasser Alsubeaei Board Director, Mohammed Alsubeaei & Sons Investment Company (MASIC) Director Yang Mulia Majeed Nasser Alsubeaei is the Board Director of MASIC as well as the Member of the Internal Audit Committee and Member of the HR Committee. He is an international investment professional with experience in global capital markets with the ability to handle responsibilities in investment banking advisory and private equity. Majeed holds a BSc Degree in Economics from King Saud University, Kingdom of Saudi Arabia. Yang Mulia Mubashar Khokhar Managing Director of BIBD Director Yang Mulia Mubashar Khokhar is a seasoned financial services professional with more than 30 years of experience across fifteen developed and emerging markets, including the USA, Europe, Asia, Africa and Gulf Cooperation Council (GCC) member states. Prior to Fajr Capital, Mubashar was the CEO of Ajman Bank, a publicly listed Shariah compliant bank in UAE, and also served as the CEO of Badr Al-Islami/Mashreq Al-Islami, a wholly-owned subsidiary of Mashreq Bank. During his tenure, Ajman Bank received widespread industry recognition, including the coveted ‘Best Domestic Bank’ award in 2011. Mubashar has previously served on the Board of Directors of Badr Al-Islami and SAMBA Pakistan Ltd, and held senior positions in American Express Bank and Bank of America. He has an MBA and BBA (Hon.) from Ohio University, USA. Yang Mulia Dr. Abdul Manaf bin Haji Metussin Permanent Secretary, Ministry of Primary Resources and Tourism Director Yang Mulia Dr. Abdul Manaf bin Haji Metussin was previously appointed as Permanent Secretary, Ministry of Home Affairs and the CEO of the Brunei Economic Development Board after having spent seven years in the Department of Economic Planning and Development (JPKE) at the Prime Minister’s Office, holding posts such as the Assistant Director of Planning, and eventually becoming Director of Policy and Coordination. Earlier in his career, he was Deputy Dean of the Faculty of Business, Economic and Policy Studies at Univerisiti Brunei Darussalam. Internationally, Dr. Manaf has been involved as a member of the Network of East Asia Think-Tanks (NEAT), as well as the East Asia Vision Group. He is currently a board member of Royal Brunei Airlines and an honorary member of Yayasan Sultan Haji Hassanal Bolkiah School’s board of governors. Dr. Manaf is a Mechanical Engineering graduate from the University of Leeds, UK, MSc in Manufacturing Systems Engineering graduate from the University of Bradford, UK and has a PhD in Management from the University of Kent, UK. Yang Mulia Awang Mozart bin Haji Brahim Deputy CEO, Bursa Brunei Darussalam Sdn Bhd Alternate Director to Awang Junaidi bin Haji Masri Yang Mulia Awang Mozart bin Haji Brahim is currently the Deputy CEO of Bursa Brunei Darussalam, a newly established company for the establishment of the stock exchange for Brunei Darussalam. Previously, he held the position as Head of Section at the Investment Division, Ministry of Finance, prior to which he also served as Senior Manager in the Brunei Investment Agency managing both alternative and traditional investments. Awang Mozart holds a BEng Degree in Civil and Environmental Engineering from the University of Leeds, United Kingdom. 15
10. 16 Bank Islam Brunei Darussalam Annual Report 2017 SHARIAH ADVISORY BODY Yang Mulia Dato Seri Setia Awang Haji Abdul Aziz bin Orang Kaya Maharaja Lela Haji Yussof Permanent Secretary , Ministry of Religious Affairs, Brunei Darussalam Chairman Yang Mulia Dato Haji Abdul Aziz bin Orang Kaya Meharaja Lela Haji Yussof is the Permanent Secretary at the Ministry of Religious Affairs of Brunei Darussalam. He carries vast experience in the field of Islamic finance covering banking and takaful sectors where he sat in a number of Islamic financial institutions as a board member, namely Syarikat Takaful Brunei Sdn Bhd (STBD) and currently, Wafirah & Ghanim Sdn Bhd. On the Shariah Advisory side, Dato Haji Abdul Aziz was the Deputy Chairman of the BIBD’s Shariah Advisory Body for the term 2014 - 2016. He currently sits as the Chairman of BIBD’s Shariah Advisory Body since February 2016. He is also a member of the Brunei Religious Council, a council responsible for advising His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam on Islamic religious matters. Dato Haji Abdul Aziz received a Bachelor’s Degree in Usuluddin from the University of Al-Azhar, Egypt in 1987 and a Bachelor’s Degree in Law from the National University of Malaysia (UKM), in 2001. Yang Mulia Dato Seri Setia Dr. Haji Japar bin Haji Mat Dain @ Maidin Deputy State Mufti of Brunei Darussalam Deputy Chairman Yang Mulia Dato Dr. Haji Japar bin Haji Mat Dain @ Maidin is the Deputy State Mufti of Brunei Darussalam. He has over 10 years of experience in the field of Islamic finance, sitting in the Bank’s Shariah Advisory Body (SAB) and the Syariah Financial Supervisory Board (SFSB) at the Ministry of Finance, Brunei, since 2006. He is also a member of the Brunei Religious Council. He has presented numerous times at various conferences and is an active speaker in many forums, both local and overseas, in topics pertaining to Islam. In the Shariah scholarly area, Dato Dr. Haji Japar is a learned and trained scholar to deduce fatwa (Shariah ruling), where he has been trained by the Lajnah Al-Fatwa of Al-Azhar, Egypt in 1994. He received his Bachelor’s Degree in Usuluddin (Aqidah and Philosophy) from the Al-Azhar University of Egypt in 1987 and obtained his Master’s Degree in Shariah from the University of Malaya in 2000. He was awarded with a PhD in Shariah by the same university in 2011. Yang Mulia Dr. Abdul Nasir bin Haji Abdul Rani Dean, Faculty of Islamic Economics and Finance, Sultan Sharif Ali Islamic University (UNISSA) Member Yang Mulia Dr. Abdul Nasir bin Haji Abdul Rani is the Dean of the Faculty of Islamic Economics and Finance, Sultan Sharif Ali Islamic University (UNISSA). He has been a part of the Islamic finance industry in various capacities, namely as a Shariah advisory, academician, lecturer and trainer. He is currently a member of BIBD’s Shariah Advisory Body since 2014. Dr. Abdul Nasir graduated with his first degree in Islamic Studies (Shariah) from the Universiti Brunei Darussalam (UBD) in 2000. He holds a Master’s Degree in Economics and Islamic Banking from Yarmouk University, Hashemite Kingdom of Jordan in 2003. In 2010, he was awarded with a PhD in Economics and Muamalat Administration from the Islamic Science University of Malaysia (USIM). He has published many books, research papers and articles in various academic journals and publication. He also presented at various conferences both local and overseas as well as conducted a number of Islamic finance trainings locally. Yang Mulia Dr. Dayang Hajah Rose binti Abdullah Director, Research and Publications Centre, Sultan Sharif Ali Islamic University (UNISSA) Member Yang Mulia Dr. Dayang Hajah Rose binti Abdullah is the Director of the Research and Publication Centre and Senior Lecturer at the Faculty of Islamic Economics and Finance, Sultan Sharif Ali Islamic University (UNISSA). She holds a PhD in Islamic Civilization from the National University of Malaysia, a Master’s Degree in Islamic Banking and Finance from Universiti Brunei Darussalam, a Master’s Degree in Business Administration from Heriot-Watt University UK, a Barchelor’s Degree (Hons) in Economics from National University of Malaysia, a Postgraduate Diploma in Islamic Banking and Insurance from United Kingdom, and a Diploma in Public Administration from Mara Technology University (UiTM), Malaysia. She has written a number of publications concerning Islamic economy and actively presents papers in both local and international conferences in the area of Islamic Finance. Yang Mulia Dayang Hajah Noraini binti Haji Buntar Istinbat Officer, Ifta Department, State Mufti Office Member Yang Mulia Dayang Hajah Noraini binti Haji Buntar is an Istinbat Officer from the Ifta Department, State Mufti Office. She holds a Master’s Degree in Islamic Revealed Knowledge and Heritage (Fiqh and Usul Al-Fiqh) from the International Islamic University Malaysia (IIUM) and a Barchelor’s Degree in Shariah Islamiah from the Al-Azhar University, Egypt. She is currently enrolled in the Fiqh Muamalat Professional Programme, organised by CIBFM Brunei. Yang Mulia Dayang Hajah Hanifah binti Haji Jenan Head of Shariah, Bank Islam Brunei Darussalam Secretary Yang Mulia Dayang Hajah Hanifah binti Haji Jenan is BIBD’s Head of Shariah with over fourteen years of banking experience covering branch banking, recovery and legal advisory prior to taking the leading role of the Shariah Division. She is also experienced in Takaful matters which was gathered during her secondment to Takaful BIBD, where she was involved in legal and claims matters. She received a Bachelor’s Degree (Hons) in Shariah from the University of Malaya, Malaysia, in 1995 and a Diploma in Law and Administration of Islamic Judiciary from the International Islamic University of Malaysia (IIUM), in 1998. She is a certified Islamic Financial Planner from Al-Hijrah Consultancy and a Certificate holder of Fiqh Muamalat Professional Programme (FMPP) from CIBFM Brunei. 17
11. 18 Bank Islam Brunei Darussalam Annual Report 2017 MANAGEMENT TEAM Yang Mulia Mubashar Khokhar Managing Director Yang Mulia Mubashar Khokhar is a seasoned financial services professional with more than thirty years ’ experience across fifteen developed and emerging markets, including the USA, Europe, Asia, Africa and Gulf Cooperation Council (GCC) member states. Prior to Fajr Capital, Mubashar was the CEO of Ajman Bank, a publicly listed Shariah compliant bank in UAE, and also served as the CEO of Badr Al-Islami/Mashreq Al-Islami, a wholly owned subsidiary of Mashreq Bank. During his tenure, Mashreq Al-Islami and Ajman Bank received widespread industry recognitions, including the coveted ‘Best Domestic Bank’ award. Mubashar has previously served on the Board of Directors of Badr AlIslami and Saudi American Bank (SAMBA) Pakistan Ltd, and held senior positions in American Express Bank and Bank of America. He has an MBA and BBA (Hon.) from Ohio University, USA. Yang Mulia Tan Pheng Leong Chief Financial Officer Yang Mulia Tan Pheng Leong has more than 18 years of experience working in the financial services industry as a Chief Financial Officer (CFO) and auditor in various financial institutions. He joined BIBD as the CFO in 2017, heading the Finance Division and is responsible for the financial matters of the group. Prior to joining BIBD, Pheng Leong worked for an international audit firm in Singapore, United Kingdom, Taiwan and Brunei Darussalam and was a partner in Brunei Darussalam and Singapore looking after clients in a range of industries from banking, insurance, fund management, oil and gas and telecommunication. He advised clients in International Financial Reporting Standards (IFRS) conversions and audited the financial statements of a number of banks and insurance companies under IFRS. Pheng Leong has a strong appreciation of global working practices, IFRS and IFRS conversion, having worked with BIBD in Brunei Darussalam and KPMG offices in various countries. He obtained a Bachelor’s Degree in Accounting (First Class Honours) from Nanyang Technological University and is a Chartered Accountant of the Institute of Singapore Chartered Accountants, the Institute of Chartered Accountants in England and Wales as well as a Certified Public Accountant of the Brunei Darussalam Institute of Certified Public Accountants. He is also a Certified Financial Analyst of the CFA Institute. Yang Mulia Hajah Noraini binti Haji Sulaiman Deputy Managing Director Yang Mulia Hajah Noraini binti Haji Sulaiman was previously the Acting Managing Director of Syarikat Takaful Brunei Darussalam, on secondment from BIBD. She was also the Head of Finance for the Islamic Bank of Brunei, and has held other accounting and financial roles in various Bruneian companies such as Brunei Shell Petroleum Sdn Bhd. Currently, she is the director for BIBD At-Tamwil Berhad, BIBD Securities, IDBB Management Services, Tabung Amanah Pekerja (TAP), and the Chairman for the TAP Audit Committee. She is a fellow member of the Association of Certified Accountants and is an affiliated member of the Brunei Darussalam Accounting Standard Council. Yang Mulia Edmundo Horacio Uribe Bobadilla Chief Risk Officer Yang Mulia Edmundo Uribe has thirty years of international banking experience, twenty-four years in Risk Management and six in Corporate and Investment Banking. He has worked for twenty two years at the Bank of America, Chase Manhattan Bank and recently, Citibank. During the last eight years, he has worked in the Middle East in Islamic Banking for Bank Aljazira in Saudi Arabia, Al Khaliji France in Qatar and Emirates Islamic in Dubai where he was invited to upgrade the risk functions and to implement international best practices, including various risk related trainings across different areas. In his previous job as the Head of Credit and Risk at Emirates Islamic, he fully revamped the risk structure, including processes, related systems and people. Edmundo holds a Bachelor’s Degree in Business Administration from Universidad Iberoamericana and a Master’s Degree in Finance from University of Exeter. Yang Mulia Dr. Gyorgy Ladics Chief Operating Officer Yang Mulia Dr. Gyorgy Ladics has over twenty years of banking experience. He was previously the Chief Information Officer at Barclays – Emerging Markets region where he provided essential business capabilities that enabled Barclays’ geographical expansion and entries into new markets like India, Pakistan, Russia, and re-launched businesses in the UAE, Egypt and Uganda. He was a key member for M&A and integration activities for Barclays and completed the integration of Uganda Nile Bank and Russia Expobank into Barclays. Prior to joining Barclays, he was Vice President at Citigroup – Central Europe Region where he held various senior positions such as Head of Operations and Technology – Czech Republic, Head of Technology for Central European Region, and Senior Operating Officer – Hungary. In Central Europe, he led the standardisation and migration efforts into strategic technology platforms and operating models for Citigroup. While in Hungary, he also led the technology effort in the integration of ING retail bank into Citibank. Dr. Gyorgy holds a Master’s Degree in Electrical Engineering and Informatics, and a Doctorate Degree from Budapest University of Technology and Economics. Yang Mulia Koh Swam Sing Head of Corporate Banking Yang Mulia Koh Swam Sing has vast knowledge and experience working in Corporate Banking as well as in Operations and Credit Risk. His career began with the Island Development Bank Bhd in 1983 where he held various positions in branch operations, administration and credit management. As one of the pioneer members of BIBD, he played a key role in the Bank’s transformation into Islamic financial banking and services, and has been instrumental in introducing some of the Bank’s core offerings. He currently leads the Corporate Banking Division which is responsible for building BIBD’s Corporate Banking portfolio, and supporting local businesses that contribute to Brunei Darussalam’s infrastructure growth. 19
12. 20 Bank Islam Brunei Darussalam Annual Report 2017 Yang Mulia Salman Ashraf Khan Head of Treasury and Global Markets Yang Mulia Salman Ashraf Khan is a seasoned Treasury and Investment Banking professional with over twenty-four years of experience in the Middle East , Far East and Europe. He currently serves as the Head of Treasury and Global Markets, and is member of ALCO (Asset Liability Committee) and ERM (Enterprise Risk Management) for BIBD. Prior to BIBD, he has worked with high profile global institutions such as Deutsche Bank (as Global Head of Islamic Distribution), HSBC Amanah (as Global Head of Treasury Sales), Standard Chartered Bank and Arab Banking Cooperation (ABC). He has also served as the Treasurer for Dubai Islamic Bank. He maintains comprehensive relationships with over 250 Financial Institutions covering various asset classes. Salman has worked with Shariah scholars worldwide to design and implement Islamic Hedging Solutions, Structured Products and Yield Optimisers (funded/ unfunded). He is a frequent speaker and a subject matter expert on Islamic Treasury. He is also a holder of CFA Designation and has an MBA and PGD Qualification. Yang Mulia Hajah Hanifah binti Haji Jenan Head of Shariah Yang Mulia Hajah Hanifah binti Haji Jenan is BIBD’s Head of Shariah with over ten years of banking experience covering branch banking, recovery and legal advisory prior to taking the leading role of the Shariah Department. She is also experienced in Takaful matters, which was gathered during her secondment to Takaful BIBD, where she looked after legal and claims matters. She holds a Bachelor’s Degree (Hons) in Shariah from the University of Malaya, Malaysia, and a Diploma in Law and Administration of Islamic Judiciary from the International Islamic University of Malaysia (IIUM). She is a Certified Islamic Financial Planner from Al-Hijrah Consultancy and a certificate holder of Fiqh Muamalat Professional Programme (FMPP) from CIBFM Brunei. Yang Mulia Haji Minorhadi bin Haji Mirhassan Deputy Chief Operating Officer/Managing Director of BIBD Securities Yang Mulia Haji Minorhadi bin Haji Mirhassan has over twenty-five years of commercial banking experience with BIBD and the HSBC Group through leadership roles in Retail, Corporate and Institutional Banking businesses. Haji Minorhadi is an active advisory committee member of the Al-Islah Centre, a member of the working committee for the eleventh Brunei National Development Plan, and is the current Chairman for the Brunei Darussalam Capital Market Association (BCMA). Haji Minorhadi holds an MBA from the Singapore Management University (SMU), a BTEC HND in Business and Finance from Universiti Teknologi Brunei and a Certificate in Islamic Financial Planning. Yang Mulia Stuart Richard Clegg Head of Internal Audit Yang Mulia Stuart Richard Clegg is a qualified accountant (CIMA) and qualified company secretary (ICSA). He holds a Master of Business Administration in Banking and Finance from the University of Manchester’s Business School. In addition, he has a BA (Hons) in Humanities and Classical Studies from the Open University and a BA (Hons) in Government & Politics from the University of Northumbria. Stuart has over twenty years’ experience of auditing in financial services both in the UK and abroad, covering retail, wholesale and investment banking as well as broking and asset management. Prior to joining BIBD, Stuart was Deputy Chief Internal Auditor at Saudi Hollandi Bank, Riyadh. Before that, he has held senior positions in the City of London for several blue-chip banking and financial services organisations. These include: Regional Audit Manager (Europe) of National Australia Bank, Head of Internal Audit at Williams De Broe, Senior Consultant at Jefferson Wells (Risk and Advisory), Senior Manager at Grant Thornton (Risk and Advisory), and Senior Director at Risk Audit Ltd. He joined BIBD in his current position as Head of Internal Audit in June 2016. Yang Mulia Hajah Nurul Akmar binti Haji Md Jaafar Head of Retail Banking Yang Mulia Hajah Nurul Akmar binti Haji Md Jaafar has been with BIBD for more than twenty years with expertise in the areas of finance, investment and retail banking. She was involved in the transformation of BIBD’s strategic initiatives through various projects such as IT system upgrades, business process improvements, product innovations and the development of the sales & service culture within the retail business. She has also played a key role in the Bank’s re-branding project which greatly enhanced the customer service experience, strengthened brand loyalty, and growth in customer acquisition. She pioneered the development of BIBD’s CSR programmes that underscored the Bank’s ‘Bruneian at Heart’ values, with flagship initiatives including BIBD Sirah Amal and the BIBD ALAF. Hajah Nurul leads the Retail Banking Group, after holding the Sales & Distribution portfolio and growing the customer base as well as Retail’s balance sheet for almost ten years. Hajah Nurul is very passionate about delivering superlative customer experience especially with innovations in digital banking. Hajah Nurul holds a BA in Accounting & Finance from United Kingdom and was an Islamic Bank of Brunei Scholar prior to joining BIBD in 1995. Yang Mulia Irwan Lamit Managing Director of BIBD At-Tamwil Berhad and Better Sdn Bhd Yang Mulia Irwan Lamit is the Managing Director and a member of the Board of Directors of BIBD At-Tamwil Berhad since 2006. He is a qualified Chartered Accountant and is a fellow member of the Association of Chartered Certified Accountants (ACCA). Prior to joining BIBD AtTamwil Berhad, he worked as an accountant at Brunei Shell Marketing Company Sdn Bhd. Irwan holds a BSc (Hons) in Applied Accounting from Oxford Brookes University, UK. 21
13. 22 Bank Islam Brunei Darussalam Annual Report 2017 Yang Mulia Habibah binti Haji Harry Head of Human Resources and Human Capital Division Yang Mulia Habibah binti Haji Harry brings with her an immense wealth of experience from various human resource functions gained during her tenures with Brunei Shell Petroleum (BSP) which spanned over fourteen years, where she last held the role of Department Head of Organization Effectiveness. She was also previously employed as the Regional HR Adviser for Asia-Pacific and Middle East for Shell IT International Sdn. Bhd. in Malaysia for three years. Habibah specialises in handling organizational issue management and strategic changes to policies and practices. Yang Mulia Azmat Ashraf Advisor to Risk Division Yang Mulia Azmat Ashraf has thirty years of diverse international banking experiences with First Chicago Bank, Deutsche Bank, American Express, Saudi Fransi and Mashreq Bank in the Middle East and South Asia. He has also served as the Managing Director of a brokerage house and an Islamic finance firm. He conceived and executed the local incorporation and integration of Mashreq Bank’s branches in Pakistan, and its merger with another domestic bank. As CEO of the newly created bank, he led the acquisition and amalgamation of other smaller banks and financial services companies into that bank. He holds a Bachelor’s degree in Economics from the University College London and an MBA from the University of Bradford. Yang Mulia Syed Alwi bin Syed Abdillah Alkaff Head of International Banking Group Yang Mulia Syed Alwi bin Syed Abdillah Alkaff has more than ten years of banking experience in Corporate Finance and Treasury. He was previously BIBD’s Co-Deputy Treasurer responsible for the portfolio management of medium-term assets comprising of fixed income securities (Sukuk), corporate and FI syndications, trade risk participation, structured products and financial institutions group. Prior to that, Syed Alwi was part of Corporate Finance & Advisory where he was responsible for developing the project financing, Sukuk origination, corporate advisory and syndication business. Key transaction experiences include arranging and structuring a refinancing deal for Brunei Gas Carriers Sdn Bhd’s first vessel (ABADI) along with syndicated project financing for its fourth (AMANI) and fifth (AMADI) vessels. Syed Alwi holds a Bachelor of Commerce in Economics & Finance from University of Melbourne. Yang Mulia John Joseph Darby General Counsel Yang Mulia John Joseph Darby has over twenty-two years of legal banking experience. He obtained a Bachelor of Arts (Honours) in Political Science and History and Bachelor of Law (Honours) from the Australian National University, Canberra, and a Masters of Law from the London School of Economics and Political Science. He is a barrister and solicitor of the Supreme Court of the Australian Capital Territory. He has previously worked for the law firms Nagashima, Ohno & Tsunematsu, in Tokyo and Linklaters in Tokyo and London. Since leaving private practice he has worked for Nomura International plc, Moor Park Capital Partners LLP, Abu Dhabi Commercial Bank, and the BGC/Cantor Fitzgerald group of companies in London, Abu Dhabi, Singapore and Hong Kong. Yang Mulia Imran Samee Chief Marketing Officer/Advisor to the Managing Director Yang Mulia Imran Samee brings a wealth of experience from over twenty years of working in Consumer and Retail Banking. He began his career with Citigroup and has since held various senior positions in banks across Asia Pacific and the Middle East. Prior to joining BIBD, he helped establish Al Khalij Commercial Bank in Qatar, serving as Head of the Retail Banking Group and then as CEO of its subsidiary BetaQat. He was also Head of the Retail Banking Group for Dubai Bank and managed its conversion to Shariah-compliant operations. In his role as the Country General Manager for Mashreq Bank Qatar, he was responsible for leading its transformation into a full-fledged Consumer Banking Operation. Imran holds a BSc (Hons) in Economics from the London School of Economics and Political Science. His previous role at BIBD was as Head of Retail Banking Group from 2011 until 2016. Under his leadership, BIBD won the coveted and prestigious “Best Retail Bank in Brunei” award from The Asian Banker for five consecutive years (2013 – 2017). Yang Mulia Haji Mohammad Yusri bin Hj Wahsalfelah Head of Government Relations and Special Projects Yang Mulia Haji Mohammad Yusri bin Hj Wahsalfelah started his career as an economist under the Department of Economic Planning and Development at the Prime Minister’s Office, and was responsible for overseeing policy formulation and economic planning in the areas of Privatization, Public Private Partnership (PPP), Competition Policy, Fair Trade Practices, and Consumer Protection. He joined BIBD as a Senior Relationship Manager in 2012, overseeing the Bank’s overall relationship with the Ministry of Finance, Government Linked Companies (GLCs), as well as other strategic stakeholders in the Government and Corporate agencies. Currently, Haji Mohammad Yusri heads the Government Relations and Special Projects Division, the bank’s key focal point for collaboration with key stakeholders in government sectors. He holds an MSc in Economics from the University of Leicester, United Kingdom, and a Double Majors Degree in Economics and Financial Planning, from Curtin University of Technology, Western Australia. 23
14. Bank Islam Brunei Darussalam Annual Report 2017 FINANCIAL HIGHLIGHTS Net Pro fit after Zakat and Taxation (B$ Million) 200.0 200.0 50.0 0.0 2017 2016 2015 108.1 141.6 Group 124.5 135.9 100.0 142.2 136.7 144.4 Bank 83.9 111.5 100.6 106.7 122.1 104.2 150.0 116.2 100.0 0.0 2014 2017 2016 2015 2014 4,000.0 Group 5,404.7 5,581.0 5,242.8 5,367.2 Bank 4,000.0 7,114.6 7,214.6 7,271.7 7,670.3 6,000.0 7,434.7 7,526.4 Deposits from Customers (B$ Million) 7,056.4 7,500.2 9,033.5 9,482.6 8,000.0 9,229.9 9,591.3 10,000.0 2016 2015 2014 2017 2016 2015 Return on Equity - After Tax 5% 20% Return on Equity - After Tax 2015 2014 5% 0% 2017 7.5% 8.5% 1.4% 1.8% 1.5% 1.4% 2016 1.7% 1.8% 2.0% 1.5% 2017 2016 2015 2014 10% 5% 2016 2015 2015 50% 2017 Group 33.5% 5.5% 4.7% 5.4% 4.7% 5.7% 4.9% 30% 37.8% 40.7% 10% Bank 2015 2014 Group 2017 2016 More than 10M Dividend Paid Per Ordinary Share Annual Growth of Average Monthly Digital Banking Log Ons Growth of Annual Retail Digital Banking Transactions Annual BIBD Digital Banking Transactions 2015 2014 SME 500 49.5% Bank 20% 0% 85% CORPORATE Brunei Corporates with BIBD 10% 2016 2017 197.1 B$0.176 Hadiah Points Issued More than 2014 Cost to Income Ratio 33.0% 39.0% Cost to Income Ratio 43.8% Non-Performing Financing Ratio 0% 23.5% 21.1% 20.8% 2016 Non-Performing Financing Ratio 5% 450M Growth of BIBD Cardholders Average Monthly Digital Banking Log Ons Group 2017 40% 2016 52.9 Bank 10% 0% 2014 9% 1.8M 5% 2017 Total Dividends Paid (B$ Million) More than DIGITAL BANKING 48% 40.5% 39.1% 0% 15% 17.7% Group 17.2% 20.8% 17.3% 17.2% 20% 23.8% 25% Bank Group Growth in Total Assets Group Total Capital Adequacy Ratios 23.4% 25% 22.8% 30% 23.6% 30% 23.3% Total Capital Adequacy Ratio 23.7% Capital Adequacy Ratios Tier 1 (Core Capital) 21.2% Total Capital Adequacy Ratios Tier 1 (Core Capital) 20% Bank Growth in Total Assets Bank 8.7% 7.9% 10% Group 9.8% 7.4% Bank Group Growth in Net Profit after Zakat and Taxation 16.9% 15% 3% Mohd Abdullah 10.5% 4% 15% 207K Bank Growth in Net Profit after Zakat and Taxation The Asian Banker's Strongest Banks in Asia Pacific 2014 23.5% 2017 Return on Asset - Before Taxation 0% More than Group Total Banking Customers 0.0 Return on Asset - Before Taxation 1% Bank 2,000.0 2,000.0 2% 11.5% 2.2% 1.1% 50.0 Deposits from Customers (B$ Million) 0.0 39.1% Group Total Assets (B$ Million) 6,000.0 BIBD AT A GLANCE 2017 Bank Total Assets (B$ Million) 8,000.0 Group GROWTH 190.8 169.8 Operating Profit (B$ Million) 150.0 Bank Operating Profit Net Profit after Zakat and Taxation (B$ Million) 2.8% 2.6% 24 Corporate Internet Banking Penetration 177% Growth of Annual Corporate Digital Banking Transactions More than 6000 SMEs with BIBD More than 800 SME Projects Supported 25
15. Bank Islam Brunei Darussalam Annual Report 2017 Retail Banking Group BUSINESS REVIEW Retail Banking Group Corporate Banking Group International Banking Group (IBG) Treasury and Global Markets (TGM) BIBD Subsidiaries Shariah Risk Management Compliance Internal Audit Human Resource and Human Capital (HRHC) Finance IT Operations Government Relations and Special Projects We continuously strive to improve the process of rigorous review for our products and services for better deployment and adaptation of new technologies. BIBD aims to be the “household bank” for the nation with an unwavering commitment to serve the people of Brunei Darussalam with relevant financial solutions that are aligned with their aspirations and hopes, and in the process promoting the nation’s development and economic growth as well as supporting His Majesty’s Wawasan 2035. In order to retain BIBD competitiveness in the market, we persevered to ensure that our value proposition remains contemporary and innovative yet rooted to the basic needs of simplicity and accessibility required by our customers. Against the backdrop of our customers’ need for seamless and borderless accessibility to our financial solutions and services, concerted efforts have been made to attain the highest levels of governance, security and convenience into our customer experience journey and digital solutions. Concurrently, and in order to reinforce our competitive advantage, we continuously strive to improve the process of rigorous review for our products and services for better deployment and adaptation of new technologies. 27
16. 28 Bank Islam Brunei Darussalam Annual Report 2017 Banking made easy Making dream homes a reality In 2017 , key strategic initiatives were introduced to increase our launch. Over 95,000 BIBD Mobile Banking users performed more than Promoting home ownership to Bruneians is a strategic priority for us payments cards business that support the de-cashing of the economy. 900,000 transactions every month - representing nearly 90% of total apart from being a matter of national importance. We have launched Special focus was brought to improving our merchant acquiring retail transactions in BIBD. various programs to create awareness for the importance of investing business in order to increase acceptance of BIBD cards throughout in one’s first home at an early age. Several initiatives were successfully the country. This has allowed us to fortify our market leader position Further consolidation of our Express Banking platform has made executed in 2017 for this purpose including real estate and developers’ and market share with impressive growth in just one year. BIBD Debit onboarding new customers very easy by fully automating our workflow, in-Branch roadshows, our bi-annual Home Showcase, consultations Card usage at our merchants recorded a 222% YoY growth in 2017 expediting processes and reducing dependencies on physical and discussions with industry stakeholders such as ABCi (Authority while our Credit Cards recorded a 426% on a similar scale. approvals. All frontline staffs are provided digital access to back- for Building Control & Construction Industry), architects, lawyers, and office infrastructure to allow the digitisation of all documentation, valuation agents. As a consequence of these initiatives, we were able BIBD’s cards-in-force reached 190,000 for the first time confirming further streamlining the overall processes and coordination between to deliver a 36% YoY growth for our Home Financing products. These BIBD’s unchallenged status as the leading issuer of payment cards in the frontline and the back-office. This robust platform also permits initiatives also fostered opportunities for local SMEs as events such the market. Nearly one in two Bruneians has a payment card from swift approvals for financing disbursements, most account opening as the Home Showcase allow budding entrepreneurs to promote BIBD. and credit cards application. services and products suited to prospective home buyers. To give impetus to the shift in our strategy, the BIBD Mobile application has also been downloaded over 200,000 times since its 29
17. 30 Bank Islam Brunei Darussalam Annual Report 2017 Corporate Banking Group Digitalising BIBD Areas of growth BIBD ’s digital banking strategy aligns with Autoriti Monetari Brunei The thrust of our emphasis going forward will be fortifying our digital 2017 was a challenging year for the Corporate Banking business. Darussalam’s Financial Sector Blueprint (2016-2025) which emphasises solutions to also allow for financial inclusion to the underserved Business activities were impacted from the slow-down in economic on the creation of a robust and modern banking infrastructure, with and unbanked, and further harness our segmentation proposition to activities resulting from challenging oil prices and a subsequent policies directed at de-cashing the economy, enhancing international manage a sustained growth on our margins. Supporting the growth of restructuring and refocus in government spending. This economic connectivity and promoting financial literacy as some of its key our fee-based businesses, payment cards remain important and we climate has affected economic activities forcing many businesses to pillars. upgrade them with contactless transaction features. This will also pursue a much-subdued course and prioritise cost-saving measures. strengthen further our merchant acquiring proposition and foster According to the ‘Digital in 2018 Global Overview’ report from ‘We growth in market share. Are Social’ and Hootsuite, Brunei Darussalam has a penetration rate However, recovery in global oil prices should allow 2018 to be a better year for Brunei Darussalam’s public and corporate sectors. In of 95% for internet users and a mobile penetration rate of 124%. Balanced Risk Management remains a strategic priority and through anticipation of this, we continue to maintain good relationships with This foretells the importance of Brunei Darussalam’s digital market enhancements in policies and processes we will aim to reduce and our current and potential clients, reflecting our recognition of the which is endorsed further by our own experience of doubling the alleviate risks and ensure that our books remain healthy. At the importance of GLCs and FDI companies to our economy. total number of digital transactions to more than 10 million annually. same time, we are committed to sustaining our investment in the BIBD remains committed to cater for this surge of digitalisation by development of our human capital to align ourselves to the Bank’s Despite the challenges, BIBD’s business strategy focuses on building providing world-class products and services to our customers. strategy of being the First Choice. long-term sustainable growth while safeguarding its assets. As such, we strive to ensure that all existing risk management functions and processes are robust and continue to be instrumental in the identification, assessment, and prioritisation of risks. Furthermore, we are focused on a more coordinated and appropriate application of resources to control or minimise the impact of unfavourable events as well as to maximise business opportunities. In our continued efforts to strengthen our clients with BIBD, we have adopted an approach which aims to simplify our services whilst ensuring that its core values are not undermined or compromised. This includes the introduction of S&P credit scoring which provides the Bank with an improved assessment tool to assess our clients’ creditworthiness and business performance. This has further enhanced the Bank’s pricing methodology, focusing on the risk and probability of default, resulting in better portfolio quality. Along with the Golden Jubilee Celebration of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam’s Accession to the Throne, the country also witnessed the opening of two iconic landmarks. The Raja Isteri Pengiran Anak Saleha Bridge, one of the two landmarks, was supported by BIBD via its collaboration with the contractor for this project. 31
18. 32 Bank Islam Brunei Darussalam Annual Report 2017 Brunei Darussalam ’s Future Industries Supporting the Public and Corporate Sector A Corporate Convenience With the strategic aim of making BIBD the “House-Bank” for Brunei We are aware of the growing importance of technology for Darussalam’s GLCs and FDI companies, our mandate to explore businesses. Through dialogue with our clients, we have been able opportunities for growth ensures that we strengthen and maintain to identify improvements in our current corporate internet banking close working relationships with our partners. system and are already in the final stages of system enhancements. We look forward to rolling out a new and more robust internet Supplementing our dedicated relationship management team was the banking system for our clients in 2018, continuously providing further conduct of a series of informative seminars and workshops such as ease and convenience. Furthermore, we have redoubled efforts to ‘Opportunity with Trade Finances’, ‘Introduction to Treasury Products strengthen the security of the Bank’s IT infrastructure through the & Market Forex’ and ‘Understanding of Corporate Product Services’ by implementation of new systems and processes that serve to monitor the Bank, which sought to improve our clients’ ability to comfortably and assess the risk of cyber threats. This is aligned to the Bank’s long- perform their business operations with informed opinions. In 2017, we standing goal of becoming the First Choice Bank for our customers. were also able to invite a total of 120 participants ranging from new businesses, expanding businesses and representatives from GLCs to our annual seminar. In line with the local business development strategy that will enhance We have also worked closely with government agencies, particularly opportunities for local small and medium sized enterprises (SMEs) Darussalam Enterprise (DARe), in our efforts to support the national under the aims of the nation’s Wawasan 2035, we also set out to initiatives in improving the ease of doing business in the country. increase support for the sustainable growth of SMEs as they strive Together with DARe, the Bank has continuously provided support, to achieve a strong foothold in Brunei Darussalam and beyond. We recommendation and mentorship to entrepreneurs and businesses, provide our clients with a broader view and a deeper understanding especially those registered under DARe. To supplement this effort, of the products and services available, ensuring that they remain we also conducted talks, participated in DARe’s Industry Business informed of the impact of their decisions, allowing them to enjoy Academy roadshows, and held seminars within the four districts, to greater operational ease in their business ventures. Since the demonstrate the Bank’s commitment to sharing its knowledge on introduction of SME 360 in 2016, responses and demands have been business financial literacy to start-ups and young entrepreneurs. positive, encouraging us to launch our second SME 360 branch in February 2017. 33
19. 34 Bank Islam Brunei Darussalam Embedding the Spirit of Entrepreneurship We aim to nurture a culture of entrepreneurship in the country and have since worked closely with institutions such as Brunei Shell Petroleum through LiveWIRE Brunei and higher learning institutions such as Universiti Brunei Darussalam (UBD), Universiti Teknologi Brunei (UTB), Politeknik Brunei and other schools to conduct lectures and promote projects. This is to allow Brunei Darussalam’s youth to attain the spirit and know-how needed to enter the business arena. Additionally, we also organised conferences and events where local SMEs can gather and share their knowledge with aspiring startups and also amongst themselves. Annual Report 2017 International Banking Group (IBG) BIBD has set forth to venture into international markets with an Despite subdued oil prices, slower business and financing activities, approach to support the aims of Wawasan 2035 in order to create a especially in the Gulf Cooperation Council (GCC) market, the strategic dynamic and sustainable economy, while simultaneously promoting location and evolution of BIBD’s franchise in the Middle East is also part the accomplishments of Brunei Darussalam’s increasingly well-educated of BIBD’s wider strategy to expand its international footprint. At the same and highly-skilled population. This is also to ensure that we continue to time, this supports the establishment of the BIBD brand in core markets strengthen economic clusters beyond the oil and gas industry as a means through active marketing campaigns and deal origination. This also allows of economic diversification supporting the national strategies, especially BIBD to enhance its counterparty management and portfolio growth on activities beyond the borders of Brunei Darussalam. which includes over 150 financial institutions globally, mainly in the Middle and Far East. IBG was formed on 1 January 2017 to accelerate and focus on BIBD’s st international strategy, offering structured financing products to our The international business also focuses on building fee income, while domestic clients and international financing solutions to clients based simultaneously diversifying and enhancing non-fee income through primarily in the ASEAN region, particularly in Singapore, Malaysia, and the the deployment of excess liquidity into higher yielding assets within Middle East (including Saudi Arabia, Kuwait, Oman and the United Arab approved risk parameters. While our fee income is driven by building up Emirates). IBG has also cemented BIBD’s physical presence outside Brunei trade finance businesses (guarantees, unfunded trade risk participation), Darussalam with offices in Singapore (BIBD Singapore Representative our excess liquidity is then deployed to financial institutions (bilateral Office, opened in June 2015) and Dubai (BIBD (Middle East) Limited, and club syndications, typically within tenors of 1-3 years), international incorporated in February 2017). corporates, and domestic structured financing facilities. BIBD’s international presence supports the Bank’s business to source, Besides contributing directly to BIBD’s profits and improving yield, this originate and participate in international financing opportunities approach also supports the BIBD strategy in terms of balance sheet through BIBD’s existing network in selected core markets (Middle East optimisation and fostering economic growth initiatives. Additionally, the and ASEAN). BIBD’s international offices provide greater market access international business focus also ensures that it adheres to a high standard and on the ground knowledge that would enable the Bank to deploy of international governance risk and compliance framework. assets and source liabilities more efficiently and at the same time grow its international financing book. The International Business Group’s asset book grew by 45% from B$302 million to B$439 million in 2017. 35
20. 36 Bank Islam Brunei Darussalam Annual Report 2017 Treasury and Global Markets (TGM) BIBD’s TGM division ranks as one of the largest Islamic treasury setups key proponent in building and maintaining the trust that BIBD has in the ASEAN region and is responsible for the management of the with its stakeholders. TGM remains committed to its existing as Bank’s funds, providing BIBD business lines with ready access to well as potential partners, and will strive to provide the best in class liquidity and ensuring that the Bank meets all its financial obligations solutions that will enable them to grow. BIBD Subsidiaries as and when they fall due. As the first line of defence, TGM plays a key role in insulating the Bank against financial market stresses through its Among the key initiatives carried out includes the establishment of robust management of capital and liquidity. an International Liabilities Desk operating out of BIBD’s Middle East presence. This function allows the Bank to diversify its liabilities In addition, TGM plays its part as a brand ambassador for the Bank in source and provide wider coverage for TGM’s interbank activities via the global financial markets by continuously seeking to foster closer access to financial institutions across the GCC and Central Asia. ties with our international banking partners, both regionally and internationally. At the same time, TGM has also contributed greatly to Another exercise carried out was the Balance Sheet Optimization BIBD, being recognised as the “House-Bank” for Government Related which further enhanced the Bank’s overall profitability through the Entities (GREs) in Brunei Darussalam. efficient reallocation of assets to the yield optimised portfolio, reaching 12% of BIBD’s total assets. At the same time, there is increased Equipped with a highly-qualified workforce and state of the art activity in the primary Islamic Debt Capital Markets, which resulted in treasury systems, TGM is committed in ensuring that the Bank BIBD being awarded the Co-Manager role in the well oversubscribed remains highly liquid by prudently managing its Money Market and Arab Petroleum Investments Corporation (APICORP) benchmark Fixed Income portfolios. Sukuk issuance. Our mission is to ensure the sustainable and responsible growth Moving forward in 2018, we will continue to provide for our customers of our global asset book using tried-and-tested risk management who seek increasingly sophisticated financial solutions and hedging principles. By the end of 2017, TGM managed about 58% of BIBD’s instruments to manage various financial risks. We will strive to total assets which includes various Shariah-compliant asset classes strengthen our product offerings and service delivery capabilities and is geographically diverse, comprising of exposures which are to support the Bank’s goals, provide solutions that meet our clients’ BIBD At-Tamwil BIBD Securities liquidity needs while offering optimised returns based on their risk BIBD At-Tamwil Berhad is a subsidiary of BIBD Berhad, with core BIBD Securities Sdn Bhd is a subsidiary of BIBD Berhad which offers appetite. Our depositors remain our number one priority and we will operations in the financing of vehicles as well as consumer products. brokerage and securities services for BIBD shares. Clients who wish TGM also manages the Bank’s institutional liabilities and is ultimately look to further strengthen existing relationships whilst forging new Aside from financing activities, BIBD At-Tamwil also accepts savings to trade in Shariah complaint securities can do so through the access accountable for the safekeeping of customer deposits, making it a lasting partnerships. and investment deposits from retail customers. provided by BIBD Securities to the Singapore Stock Exchange and investment grade and above. Bursa Malaysia through our respective local counterparts. With the challenging economic climate of 2017, resulting in shrinking sales of both new and used cars, BIBD At-Tamwil performed commendably and recorded a profit before zakat and tax of B$32.8 million. The Company also improved its total asset size by 8% to B$869 million. 37
21. 38 Bank Islam Brunei Darussalam Annual Report 2017 Shariah Risk Management Robust risk management function and processes have been placed to crucially Credit Risk allow for independent and rigorous assessment , monitoring and oversight of A robust credit risk framework is one that embeds prudent financing guidelines the financial and non-financial risks across all parts of BIBD and safeguarding to minimise credit defaults and losses whilst maintaining a credit portfolio that its assets – all required so importantly to support BIBD’s quest for long-term is adequately diversified. The Bank has an early warning and watchlist process, sustainable growth. This is part of our wider efforts to uphold the highest which is a proactive credit risk management tool that identifies deteriorating standards of compliance, governance and controls to enable effective risk credits at an early stage. management and compliance throughout BIBD. Operational Risk We take the approach of analyzing investment and financing proposals as well Operational errors, frauds, natural disasters and system issues that eventually as evaluating the Bank’s operational processes in close cooperation with our may be translated into losses for the Bank are constantly monitored and respective business units, to ensure the Bank’s exposure to risk is understood, reported. As a continuous proactive measure to better capture all related discussed and managed in a proactive way and that all stakeholders’ interests events, the Bank has placed a strong emphasis on providing constant training are protected. We adopt a proactive approach in monitoring the Bank’s risk to all bank employees. parameters such as performing regular stress test and scenario analysis, within Adherence to Shariah principles is essential to the operations of to improve our research function, while keeping abreast with any Islamic Bank. The Shariah Division, supervised by the Shariah international Shariah issues and matters through participation in Advisory Body (SAB), ensures that all products, services, transactions, international and local conferences and seminars. Personnel from operations and activities are Shariah-compliant and that this process BIBD and other local Islamic financial institutions were also engaged is managed through consistent and proactive engagement with all with prominent international scholars through seminars, workshops, banking business, controls and support functions. The Shariah team and discussions to raise Shariah awareness and compliance. also develops, reviews and enhances new and existing products and the ALCO framework, based on the risks outlined in any given economic Market, Funding, Liquidity and Country Risks environment. While monitoring and reporting the market exposure of the Bank to ensure that the exposures are within the Bank’s approved appetite, the Risk BIBD employs the Enterprise Risk Management Framework (ERMF) as a Management team also continuously keeps abreast of market developments standardized approach to manage its risks. A strong governance structure is which may impact the market risk matrices. The Bank maintains high quality important to ensure that the ERMF can be implemented effectively. The Board liquid assets and well diversified sources of funds that act as a liquidity risk is ultimately responsible for BIBD’s risk management activities and is supported buffer. The country limits were also taken into consideration as part of the by the Audit and Finance Risk Committee (AFRC) and Risk Management relevant risks and business requirements. Division. While risks are managed at the point of risk-taking activity, there services through diligent research on Shariah to create a progressive In 2017, Shariah compliance was also weaved into the operations is clear accountability of risk ownership across BIBD as demonstrated in the Legal, Regulatory and Reputational Risks Shariah governance framework aligned with international best of other divisions (i.e. Risk Management Division, Internal Audit chart below. The Bank is well-aware and is always proactive to mitigate all risks related to practices. Division, etc.) where designated Shariah officers have been appointed legal matters and others, as well as fully cognizant of all local regulations to to sit in respective divisions to further strengthen independent In the current challenging market environment, we are constantly working Several new and enhanced guidelines are also adopted to determine Shariah compliance. This will help instill adherence, further improve to adapt to international standards to ensure that our processes and systems Shariah non-compliant activities and methodologies for Shariah understanding and promote greater embracement. compliance screening to support BIBD personnel to proactively manage any operational issues. Awareness on BIBD’s Shariah Moving forward, the Shariah function will not only look into guidelines for exercises such as new products and services approvals building a more systematic approach to addressing risks of Shariah and non-compliant activities also ensures that all our activities do non-compliance, but will also improve capacity and capabilities in not contravene with our license to operate, safeguarding our full developing Shariah experts in Islamic banking and finance in order to adherence to Shariah principles. support business activities and innovation. Some of the new initiatives in progress include a Zakat calculator in order to ensure that the Zakat avoid any regulatory and reputational risk. remain robust. Our efforts are reflected in the Bank’s reaffirmed A- credit rating Cyber Risk conferred by international credit rating agency, Standard & Poor’s (S&P Global). Constant reviews and upgrades of all IT systems are performed to avoid any The emphasis of a strong risk management culture is the foundation of the external disruptions that may affect BIBD’s general capabilities to operate; Bank’s control mechanism. This involves an on-going process of identification, ensuring that our customers benefit from our vast investment in technology. assessing, controlling, monitoring and reporting of material risks that affects Together, these approaches allow for further strengthening of BIBD’s overall the achievement of the Bank’s strategic objectives. These risks are categorized risk management capability through best practices based on international as follows: standards. As part of this approach, the risk framework is constantly assessed GOVERNANCE To further strengthen our own Shariah-specialised capabilities, obligation of our Muslim customers is calculated correctly and is BOARD BIBD has collaborated with local universities and an international convenient. We have also collaborated with a local company on the AFRC Islamic Advisory company for Islamic Financial Planning programmes development of an Islamic education app, ‘Edumindplus’. ERMC RISK MANAGEMENT DIVISION BUSINESS UNITS and reviewed to continue developing a culture where predictive risk management is enabled, in addition to providing the Bank with deeper and more comprehensive analytics. 39
22. 40 Bank Islam Brunei Darussalam Annual Report 2017 Compliance Internal Audit BIBD wants to ensure that it has a sustainable competitive advantage This has also allowed the Bank to set up a Regulatory Compliance For the Bank to continue succeeding in its mission to be the First The methodology execution of audits is also being streamlined by by safeguarding its integrity and being fully compliant with laws and Library to ensure that BIBD personnel are well equipped to manage Choice for all stakeholders – the Bank must provide assurance moving into a more risk-based approach, using the COSO Model, regulations, policies and procedures, while at the same time providing regulations respective to their activities, while also monitoring for that it manages its risks in a responsible manner. This includes the covering the Control Environment, Risk Assessment, Control Activities, a more than adequate sandbox for growth to allow for innovation; any possible areas of concern. The compliance function will also management of the Bank’s capital and its assets and liabilities, Information and Communication and Monitoring Activities, which affording the Bank to maximise on any business opportunities. This review compliance risk assessment methodologies to ensure that all adherence to legal and regulatory considerations as well as its own focuses on key processes and their risks. This approach will provide is achieved through provision of Bank-wide guidance and support, as compliance issues and risks are assessed and addressed. policies and procedures, compliance to Shariah principles, and consistency while ensuring a suitable internal control framework management of its corporate and social responsibilities. that achieves effectiveness and efficiency of operations, reliability well as managing the compliance risks and obligations collaboratively. The Bank is constantly looking to strengthen the overall capabilities of financial reporting, and compliance with applicable laws and Banking has shifted tremendously to digital banking which poses a and execution of its compliance arm, especially in anti-money Internal Audit systematically reviews the Bank’s entire operations new type of risk. Therefore, more robust, improved and stringent laundering transaction monitoring systems; while at the same time, which include branches, departments, IT, group companies and compliance strategies have been adapted to ensure that these creating more awareness on the compliance responsibilities of all overseas offices over a three-year cycle. As the ‘third line of Moving forward, further effort will be placed to develop the technologies are not abused for other intents. We have also embraced BIBD employees. While training on AML/CTF and FATF is compulsory defence’, Internal Audit is independent of the Bank’s line and senior Governance, Risk and Compliance system to improve risk analysis and digital technologies from a compliance aspect to ensure an industry- for all relevant staff personnel, our own compliance officers also have managements, and report, objectively and independently, directly to the tracking and resolution of audit issues. In addition, Internal Audit level capability to safeguard our customers’ information. registered Association of Certified Anti-Money Laundering Specialists the Board of Directors (via the Audit, Finance and Risk Committee). will work closely with management and other control functions (ACAMS) certification. This is to ensure that the Bank is responsible, responsive and consistent to ensure the success of various bank and regulatory initiatives Through proactive behavioral monitoring analysis and investigation, regulations. in its engagement with shareholders, customers and clients, and its such as the implementation of Basel 2, IFRS9 and ISO9001 quality BIBD ensures that it has diligently implemented parameters for Some of the other key activities include the implementation of assets are adequately safeguarded through effective and robust risk management. screening of any suspicious activity. BIBD also has a stringent Anti- the Watch List Management system which proactively screens and management and compliance processes. Money Laundering (AML) program that implements policies and creates alerts. This was matched with a risk-based profiling approach procedures to combat money laundering and terrorist financing. for respective customer segments, with enhanced due diligence for The goal for audit during 2017 has been to provide insight and and improve the overall assessment of the Bank’s internal control Compliance risk assessment and testing of prescribed thresholds and high-risk customers. This allows improved screening capabilities from foresight rather than hindsight by focusing on expanding the scope, framework; ensuring that current and future banking activities are parameters are also reviewed to ensure adherence with current and batch processing to real-time with new customer onboarding. This abilities and skillset of its own capacity, directly improving its audit adequately controlled and managed to the benefit of all stakeholders. updated directives as well as internal policies and procedures. also reflects our position as a digital pioneer that not only reacts, but methodology and report writing. Internal Audit has also included also anticipates any shifts in customers’ behaviour. specialist roles covering IT audit and Shariah compliance, which is These initiatives will strengthen the Bank’s internal audit function central to all audits undertaken by Internal Audit. 41
23. 42 Bank Islam Brunei Darussalam Annual Report 2017 Human Resource and Human Capital (HRHC) At the core of every institution is its most important competitive To improve the overall impact and transparent delivery to our advantage: human capital. To accomplish our mission to be the First employees, the Bank appointed 35 HR ambassadors who serve as Choice, HRHC continually reviews and improves its activities of an extension of the HRHC. HRHC will also be looking towards the recruitment and selection, learning and development, manpower implementation of a new Human Resource Information System which planning, performance management, compensation and benefits, will improve efficiency and convenience of HR processes, enable succession planning and staff engagements to respond to the present automation of standard HR functions, and provide a strategic tool for and future needs of the business. Equally important is HRHC’s role decision-making. Finance in creating a positive, fair and performance-driven work culture that motivates BIBD employees to be a highly talented and productive A total of 519 participants attended 25 leadership and personal workforce. development programs organized locally and overseas. In addition, two senior leaders attended the Cambridge Islamic Finance HRHC’s business model focuses on delivering functional excellence Leadership Program, where a BIBD employee was awarded as one of as an effective and consistent implementer of Human Resource the six outstanding delegates who showcased exceptional leadership (HR) best practices. At the same time, there needs to be a drive to qualities. Meanwhile, more than 40 employees received Certification ensure that the current BIBD talent pool contributes in an impactful for Islamic Financial Planner from IBFIM, SHL Personality & Ability manner to real strategic and operational business considerations. To Assessment, ICA Certificates in Anti-Money Laundering, Financial support this drive, I-CUE (Integrity, Customer Focus, Unity of Purpose, Planning Practitioners’ Program, and Certified International Human Excellence) was launched as our internal values to strengthen the Resource Manager. alignment within BIBD. This was cascaded via staff engagements such as roadshows to ensure that the implemented values were clearly HRHC also looked to improve its return on investment (ROI) of understood and embraced. employee learning and development through a more focused Ensuring accurate and detailed information for internal and external achieve this objective will also be driven by investments in human learning and development plan which includes the digitalisation of reporting, whilst complying with accounting standards (IFRS) as well capital for more professional certifications, increased periodic Internally, HRHC has also reviewed and improved BIBD’s HR related learning programs and the launch of customised e-Learning modules. as rules and regulations set by our regulator (AMBD), the Finance regulatory reporting, and enterprise resource planning solutions. policies and processes to improve workflow and ensure efficient In September 2017, HRHC received an appreciation award from Cegos Division ensures the utmost integrity in its financial statements and delivery while reducing costs. One of the policies reviewed was Asia Pacific for showcasing “Commitment to Learning and Digital publications. the medical checkup for employees, which is revised to reflect Transformation in Brunei”. There have also been efforts to provide more focus on analytics and automation to support business functions and decision-making. The age segments, resulting in 27% cost savings. Allowances have also Given the increased complexity of the financial accounting sector, improvements brought about include more accurate and controlled been revised for optimum utilisation. At the same time, HRHC also along with the adaptation of IFRS, BIBD is also looking at achieving processes, reconciliation, reporting of anomalies or exceptions that strengthened the skills of the existing HRHC team with 79% holding the Basel 2, Pillar 1 requirement that includes minimum capital have also aided the enhancement in identification and resolution of certification. requirement, supervisory review and market discipline. Activities to issues. 43
24. 44 Bank Islam Brunei Darussalam Annual Report 2017 Government Relations and Special Projects IT Operations As digital technology rapidly becomes an integral component of institution to ensure that our business operations remain seamless . everyday business, the demand for simpler and more convenient To that end, we have supported and collaborated with FinTech ways of doing banking has also heightened, leading us to invest in providers in the development of initiatives such as chatbots, card- cutting-edge technologies and solutions. Our commitment to keep less transactions, biometric authentication, e-wallet and e-coupons abreast with the ever-evolving opportunities and challenges of digital amongst others. technology cements our position as a technological innovator in Brunei Darussalam’s banking landscape. To accommodate the ever-growing technical requirements of new technological products and tools in the market, we are committed Key to this initiative is the integrity and security of our IT to developing the right competency framework, matrix, skills and infrastructure. We have taken integral steps to further reinforce our requirements for our human capital growth, while at the same time infrastructure against cyber threats to mitigate any potential risks equipping them with the necessary knowledge and toolsets. through implementation of a multi-layered protection onto our internal and external engagement systems. Two-factor authentication Moving forward, we will strive to deliver unparalleled quality of was implemented into the payment gateway system and internal services to our stakeholders as an ‘Innovation Engine’, providing communications were further enhanced with additional protection products and services that are secure, highly available, flexible, and and encryption to reduce the risk of data leakage as well as to agile. As we adopt the market’s latest and most effective technologies safeguard information from external attacks. Additionally, penetration to tackle new opportunities and challenges, we will ensure that tests are exercised periodically to evaluate our security and identify highly converged virtualised environments and robust IT frameworks any potential vulnerability and risk. are in place to accommodate such changes, and will remain at the forefront of our priorities as we move towards establishing ourselves We are also constantly innovating ways to digitally develop a more tech-savvy culture, transforming us into a smarter and progressive as a centre of excellence. BIBD aspires to become the country’s First Choice Bank, while at GRSP also oversees the effective management and maintenance the same time, aligning the Bank’s initiatives with His Majesty’s of the Bank’s facilities, ensuring that BIBD’s assets are appropriately Wawasan 2035 in support of the country’s long-term development. safeguarded and building regulations as well as Health, Safety and To that end, our Government Relations and Special Projects (GRSP) Environment (HSE) requirements set by the Brunei government are Division remains steadfastly committed to establishing synergistic adhered to. By observing international standards of best practices and relationships with government and non-government stakeholders, providing the best of facilities, GRSP ensures that high quality services and facilitating projects and initiatives that will prove beneficial to are delivered effectively and efficiently. At the same time, GRSP the growth of Brunei Darussalam. facilitates the development of an enhanced quality of life amongst the under-privileged as part of its Corporate Social Responsibility undertaking. 45
25. Bank Islam Brunei Darussalam Annual Report 2017 Promoting Brunei Darussalam as an Investment Hub CORPORATE MILESTONES Promoting Brunei Darussalam as an Investment Hub Enhancing Customer Conveniences Spreading Our Wings International Recognition for BIBD Investing in Brunei ’s Human Capital Corporate Social Responsibilities Sharing Our Blessings Giving Back to the Country & Community Fortifying Brunei’s Future: BIBD ALAF BIBD ALAF Programme Activities As the largest globally recognised Islamic financial institution in Brunei Darussalam, BIBD strives to fulfil His Majesty’s Wawasan 2035. This vision reflects Brunei Darussalam’s aspirations to be recognised globally for being an international hub for Islamic Finance. BIBD shares Brunei’s Development & FinTech opportunities As Brunei Darussalam’s leading Islamic financial institution, BIBD was chosen to represent the country at the Islamic Financial Services Board’s (IFSB) annual meetings for its fifteenth general assembly, joining more than 140 international delegates. The meeting was held in Malaysia with the theme “Islamic Finance and Global Regulation: Moving Targets and New Horizons” emphasising on the rise of FinTech and its benefits to Islamic finance. Attracting Foreign Direct Investors to Brunei In our efforts to boost Brunei Darussalam’s regional economic and trade cooperation whilst providing business opportunities for attending countries, BIBD participated in the 14th China-ASEAN Expo (CAEXPO) in Nanning, China. As the ‘Country of Honour’ this year, Brunei Darussalam sent an almost 200-strong delegation. 47
26. 48 Bank Islam Brunei Darussalam Annual Report 2017 Enhancing Customer Conveniences Spreading Our Wings BIBD continues to support the Bruneian Government on elevating In keeping with our mission to become the First Choice institution , we strive to provide our clients with sound and robust Islamic financial solutions whilst ensuring that they receive convenient accessibility to our services, bolstering customer satisfaction as we define a service benchmark that is truly “Bruneian at Heart”. the ease of doing business in the country, while at the same time, Introduction of new digital banking platform, BizNet & MSME accounts keeping in line with AMBD’s strategic plan and objective to reduce To improve the financial management of local micro, small and the use of both cash and cheques in the country, reducing costs, and medium enterprises (MSMEs) whilst promoting ease of doing business encouraging innovation. This is to create a progressive environment for its corporate clients, BIBD introduced two new products: BizNet - conducive to the sustained growth of the economy. the Bank’s new corporate online banking platform that helps manage day-to-day account activities and also enables payments-- and the BIBD MSME Current Account. Sixteenth branch opened in Brunei Darussalam To promote easy access to our products and services and for the convenience of our customers, the Bank’s sixteenth branch in Brunei began its operations in early 2017. The Serusop branch is a full-service branch aiming to serve all BIBD customers from its key segments (i.e. Retail, Corporate and Perdana). First dedicated “Home Centre” launched for Kuala Belait residents BIBD launched its first ever dedicated “Home Centre” located in the Panaga Branch for the convenience of its customers within the Belait District. This facility serves as a one-stop shop for existing and prospective home owners to realise their dream home. New conveniences for our customers As part of the Bank’s efforts to further extend its network and be closer to its customers, BIBD has launched new ATMs and CDMs (Cash Deposit Machines) in rural areas of Tutong and Kuala Belait for the convenience of the residents. At present, BIBD has 61 ATMs and 22 CDMs operational nationwide. 49
27. 50 Bank Islam Brunei Darussalam Annual Report 2017 International Recognition for BIBD BIBD is one of the strongest banks in Asia-Pacific and the strongest in Brunei BIBD was announced as one of The Strongest Banks in Asia-Pacific by Balance Sheet as well as The Strongest Bank in Brunei by The Asian Banker (TAB). It also remains the only Bruneian bank to be featured within The Asian Banker’s ranking of Asia-Pacific’s top financial institutions for two consecutive years. The prestigious award demonstrates BIBD’s sound fundamentals. Representing Brunei as ASEAN Leader in Rural Development and Poverty Eradication With the support of the Ministry of Culture, Youth and Sports, BIBD was honoured with the ASEAN (Association of Southeast Asian Nations) Rural Development and Poverty Eradication (RDPE) BIBD maintains Stable A- Rating from S&P Global Five wins in a row for BIBD as “Best Retail Bank in Brunei” BIBD was affirmed a stable outlook on its strong A- rating from leading BIBD was recognised as the Best Retail Bank in Brunei Darussalam international credit rating agency Standard & Poor’s (S&P) Global. The for the year 2017 by the prestigious The Asian Banker for the fifth rating, the highest for a Bruneian bank and on par with other leading consecutive year. The Bank was commended on its improved retail banks in ASEAN, recognises BIBD’s financial strength. segments to gain new customers. Also highlighted was the Bank’s investment in its employees to drive business growth. The A- rating recognises BIBD as a world class institution and reflects the Bank’s strong capital assessment and profitability, as well as its business stability and dominant market share in Brunei Darussalam. BIBD’s liquidity ratios - stronger than several of its global peers - were also favourably acclaimed. Leadership Awards at the 10th ASEAN Ministerial Meeting on Rural Development and Poverty Eradication, held in Kuala Lumpur, Malaysia. The distinguished award reflects ASEAN’s recognition of the Bank’s efforts in promoting rural development and poverty eradication within the region which has helped to provide the people with increased opportunities to improve their quality of life. Best mobile and digital banking services in Brunei In recognition of the Bank’s nimbleness in implementing new technologies and in forming partnerships with FinTech players, World Finance conferred two awards upon BIBD: “Best Mobile Banking Application” and “Best Digital Bank in Brunei – 2017”. These awards cement BIBD’s standing as a progressive bank, deploying world-class standards in every aspect of its operation. 51
28. 52 Bank Islam Brunei Darussalam Annual Report 2017 Investing in Brunei ’s Human Capital Corporate Social Responsibilities BIBD strives to nurture and support innovation, creativity and analytical prowess of our future generations, encouraging them to think divergently whilst maintaining a positive outlook. Keeping in line with Brunei Darussalam’s Wawasan 2035 to foster a dynamic economy sustained by the accomplishments of its well-educated and highly-skilled citizens, we endeavour to cultivate quality local entrepreneurs through collaborations with globally recognised institutions whilst maintaining international benchmarks and standards. To operate with a steadfast commitment to social responsibility is part of our mission at BIBD. BIBD’s growth, motivated by our Bruneian at Heart DNA structure, is guided by sound and sustainable practices reflected in our CSR (Corporate Social Responsibility) strategies. These endorsed the developments of our country and community, nurturing individual social responsibility and promoting awareness amongst Bruneians. Our CSR programmes are founded on three key pillars; education, literacy in order help them manage their personal finances better. In local entrepreneurship, and community growth. By emphasising this regard, the Bank’s accredited financial planners arrange regular the importance of these areas, we aim to provide an even more talks on the importance of prudent and perennial financial planning substantial impact on nation building and equip our youth with at public, private and educational institutions. educational opportunities beneficial to their future in a thriving and competitive economy. As Brunei Darussalam pursues greater economic diversification, we believe that entrepreneurship must be nurtured within our Improving capabilities through advanced qualifications in Islamic Wealth Management With the aim to elevate BIBD’s capabilities to provide better Islamic Wealth Management solutions to its customers, twenty BIBD employees participated in an eight-month long advanced level certification program held under IBFIM’s (Islamic Banking and Finance Institute Malaysia) Islamic Financial Qualifications Framework and Progression Route in order to qualify as an Islamic Financial Planner (IFP). The employees were awarded with Certified Qualification in Islamic Banking (CQIF) in Wealth Management. BIBD Delegates Impress at Cambridge-IFLP Two outstanding delegates from BIBD - Hj Mohd Yusri and Syed Alwi Abdillah Alkaff - successfully completed the 3rd Cambridge Islamic Finance Leadership Programme (“Cambridge-IFLP”) where they were both recognised as top-class potentials for leadership in Islamic Banking and finance. BIBD’s own Hj Mohd Yusri was also awarded the Cambridge Islamic Finance Leadership Award for his exceptional performance throughout the programme. Open-session with Dr. Mohd Daud Bakar We were fortunate to host an open-discussion session between globally recognised Shariah scholar, Datuk Dr. Mohd Daud Bakar, and BIBD employees. The session served to develop a better understanding of Islamic finance for BIBD employees and to keep BIBD abreast of new developments in the Islamic finance space. As reflected in BIBD’s ALAF (Advocating Life-Long Learning for an community to drive the growth of new businesses. Through our Aspiring Future) programme, one of our leading CSR initiatives, we collaboration with Darussalam Enterprise (DARe), we organised trust in the value of learning, and its capacity for nurturing our youth’s a sharing session with Fashion Valet – a rapidly growing Malaysian progress. In partnership with the Ministry of Education and Ministry company with humble origins in the SME sector - with the hope of Religious Affairs, we endeavour to support the education of young of inspiring local entrepreneurs and businesses. BIBD will continue underprivileged Bruneians by providing them with the educational to promote the growth of the MSME and SME sectors by forming tools necessary to their progress as well as dedicated ALAF welfare partnerships with relevant government agencies and participating in teachers to ensure a versatile educational experience. various events aimed towards this objective. Public speaking workshops, learning camps and trips to educational Kindness and compassion remain important values for us and spur locations are some of the many additional activities that were held in us to provide aid and succour to those most in need. BIBD held its 2017 as part of the programme’s holistic approach to education - both 7th annual Sirah Amal Charity Drive during Ramadhan in partnership within and beyond the classroom. Currently, a total of 170 students with the Ministry of Religious Affairs in order to support the have been enrolled in the programme, with more to be included underprivileged communities. Food hampers and other daily next year. In its fourth year now, the long term ALAF programme has essentials were distributed to those in need. achieved significant success as one of its students will move on to pursue her tertiary education at the prestigious Al-Azhar University We believe that the Bank’s collective efforts in promoting education, in Egypt. entrepreneurship, and the community’s welfare will nurture the nation’s socioeconomic development, making BIBD Brunei’s First BIBD’s educational initiatives also include financial awareness programmes designed to equip Bruneians with greater financial Choice financial institution. 53
29. 54 Bank Islam Brunei Darussalam Annual Report 2017 Sharing Our Blessings Giving Back to the Country & Community Celebrating Aidil Adha with the public Providing support to those in need BIBD held its Aidil Adha celebration at Masjid Pengiran Muda Abdul As part of BIBD’s collective effort to reduce the burden faced by less Mateen in Kampung Mulaut, where a total of four buffaloes and a fortunate members of our community, we organised several donation cow were sacrificed. The Korban was distributed to around sixty campaigns to aid those in need. recipients, comprising of underprivileged members of the community among others. BIBD also contributed eighty Yaasin books to the In collaboration with the Brunei Darussalam Red Crescent Society mosque. The guest of honour was Yang Mulia Dato Seri Setia Dr. Haji (BDRCS), the Bank contributed funding of more than B$ 2,000 together Japar bin Haji Mat Dain, Deputy Chairman of the Shariah Advisory with basic daily essentials to a student from the ALAF Programme Body of BIBD and its subsidiaries and Deputy State Mufti. whose residence was destroyed in a fire. BIBD Hands over Zakat For 2016 Now in its seventh year, the BIBD Sirah Amal initiative has been BIBD expressed gratitude that its performance in 2016 allowed it to providing support to underprivileged families from all four districts hand over Zakat of approximately B$3.3 million on business for the of the country. Donations and relief items were provided by the Bank financial year 2016 as well as almost B$475,000 as Zakat for customers’ and its employees to bring joy to the families they visited. deposit for the period of 2016 – 2017. In combination with the Department of Community Development The Zakat were handed over by Yang Mulia Dato Seri Setia Awang (JAPEM), Ministry of Culture, Youth and Sports, BIBD offered donations Haji Abdul Aziz bin Orang Kaya Maharaja Lela Haji Yussof, Shariah to more than five thousand recipients from all four districts. At the Advisory Body Chairman of BIBD and its subsidiaries, Permanent same time, under its “Skim Hadiah Galakan Pelajar-Pelajar Cemerlang Secretary at the Ministry of Religious Affairs to Yang Berhormat Pehin 2016”, BIBD handed out special awards to twelve orphaned students in Udana Khatib Dato Paduka Seri Setia Ustaz Haji Awang Badaruddin bin recognition of their dedication by excelling in their education. Pengarah Dato Paduka Haji Awang Othman, the Minister of Religious Affairs, in his capacity as President of MUIB (Majlis Ugama Islam Boosting Our Local Entrepreneurs Brunei). BIBD continues to seek partnerships with local businesses in our efforts to assist them in their journey towards growth and progress In order to help Muslim customers meet their obligations, BIBD and to propel them into becoming international businesses. In has also provided the convenience of Zakat payments at its branch collaboration with DARe, an experience-sharing session with the co- counters in Brunei Darussalam. In shaa Allah, BIBD will also explore founders of Fashion Valet, Fadzarudin Shah Anuar and Vivy Sofinas other convenient ways to allow its customers to perform their Zakat Yusof, was held to provide local entrepreneurs with an understanding obligations by using BIBD’s digital channels. of the real-life challenges and efforts necessary for them to expand their businesses and to emulate the example of Fashion Valet’s success in expanding internationally. Cemetery Cleaning Campaign To reflect the Bank’s commitment towards further strengthening its ties with the community, BIBD organised clean-up activities at a Muslim cemetery in Kampong Kilanas. The event was supported by participation from BIBD personnel along with students from the ALAF Programme. 55
30. 56 Bank Islam Brunei Darussalam Annual Report 2017 Fortifying Brunei ’s Future: BIBD ALAF BIBD ALAF Programme Activities FEBRUARY Excellent Results Thirteen BIBD ALAF students scored excellent results in their respective exams Student Enrollment Forty-two new students were enrolled into BIBD ALAF MARCH Trip to Brunei Book Fair Top thirteen achieving ALAF students were taken to an outing to the “Brunei Book Fair” Career and Smart Camps A seven-day camp to prepare ALAF students with awareness on career opportunities and motivate students to achieve their goals BIBD’s flagship education-community funding initiative aims to APRIL provide the necessary support to realise His Majesty’s Wawasan 2035 of turning Brunei Darussalam into a nation widely recognised for its people’s quality of life and the accomplishments of its well- Launch of ALAF Library educated citizens. The BIBD ALAF Programme strives to provide A dedicated library for the ALAF Programme was launched to further support education and learning, the essentials of individual growth and key the development of its students indicators of national development, to less fortunate children in Brunei Darussalam so that opportunities for success remain abundant for the underprivileged. Besides constant tutoring and counselling, our ALAF programme also provides for necessities such as school and JUNE tuition fees, stationeries, transportation, and meals. First to fly to Egypt Dayang Norhafikah Hj Awang Bakri First BIBD ALAF Scholar to continue studies in Al-Azhar University, Egypt 57
31. 58 Bank Islam Brunei Darussalam Annual Report 2017 JULY Annual Get Together Participated in His Majesty Sultan Haji Hassanal Bolkiah Mu ’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam’s meet-and-greet with people in conjunction with His Majesty’s 71st birthday celebrations DECEMBER Signing MOU with AGROMEIQ Thirty students participated in a four-month programme where they were given the opportunity to learn farming methods and processes as well as the fundamentals in starting their own farms Celebrating Achievements Forty-seven students obtained excellent results and were awarded for their academic achievements