‘Banking sector is stable, profitable’

National 1 minute, 13 seconds

BANDAR SERI BEGAWAN

BRUNEI’S banking sector remains stable and profitable, according to the latest data issued by the Autoriti Monetari Brunei Darussalam (AMBD).

Citing audited financial statements for 2015 issued recently by local banks, AMBD said the sultanate’s banking industry “has shown stronger profitability and improving assets quality in 2015”.

“The key financial soundness indicators in the banking sector were maintained at healthy levels,” AMBD said in a statement issued yesterday.

The sultanate’s central bank said by the end of 2015, the aggregate regulatory capital adequacy ratio for the banking sector stood at 21.5 per cent or well above the minimum regulatory requirement of 10 per cent.

Bank loans/financing increased by 7.2 per cent to $6.1 billion on a year-on-year basis.

Return on assets and return on equity as of end December 2015 stood at 1.3 per cent and 9.0 per cent, respectively. The gross non-performing loans/financing ratio has improved to 4.9 per cent, compared with 2014’s 5.0 per cent.

“These strong profit and performance figures for Brunei’s banking sector show that profits are rising, not falling and that AMBD regulations are having a positive effect on banks’ non-performing loans/financing ratios,” said AMBD Managing Director Yusof Hj Abd Rahman.

He said AMBD’s policies have allowed consumers “to manage their financial affairs more effectively to the benefit of the economy as a whole”.

AMBD plans to build on the banking sector’s sound foundation and continue with its target to implement the Basel II Capital Adequacy Framework by 2017.

The Brunei Times