ANNUAL REPORT LAPORAN TAHUNAN - Baiduri Bank

ANNUAL REPORT LAPORAN TAHUNAN

2012

ANNUAL REPORT 2012

Our Vision and Mission

VISION To be the leading banking and financial group in Brunei Darussalam.

MISSION As a truly local entity in Brunei Darussalam, the Group is committed to provide innovative and comprehensive financial products and services to the Bruneian community.

Annual Report Baiduri Bank 2012

Contents 48

Chairperson’s Statement

50

Corporate Information

53

2012 Financial Highlights

55

2012 Corporate Highlights

69

86

∙ Corporate Banking

∙ Retail Banking

∙ Consumer Financing-Baiduri Finance

∙ Branch Network

∙ Promotional Campaigns

∙ Operations Management

∙ Human Resource Development

∙ Customer Appreciation

∙ Promoting Financial Literacy Among Bruneians

∙ Supporting the Development of Locals in Business

∙ Corporate Social Responsibility

∙ International Awards

Financial Statements 2012

∙ Report of the Directors

∙ Independent Auditor’s Report

∙ Profit and Loss Statements

∙ Balance Sheets

∙ Statements of Changes in Equity

∙ Cash Flow Statements

∙ Other Financial Information

Offices, Branches and ATM Network

5

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Chairperson’s Statement several innovative products which included a Bonus Linked Fixed Deposit and two Certificates of Deposits with attractive interest rates bundled with credit cards. Sales in Foreign Currency FD and Brunei Dollar FD increased significantly. Both cardholders spending and merchant sales also increased compared to the previous year. In conjunction with the opening of our latest branch at Times Square, we held a soft launch for the new Smart Executive programme. Designed for the busy executive or professional, Smart Executive offers innovative solutions to banking through a host of self-service electronic channels as well as year-round benefits. Corporate Banking Under Corporate Banking, we continued to support SMEs and Brunei’s economic diversification programme. We also focused on structured financing, offering specificallydesigned financing solutions to companies associated with oil and gas, government projects, and providing greater infrastructure contracts. We promoted internet banking services offering greater convenience to our corporate customers. We set up links between our Corporate Banking Division and our Retail Banking Division in order to cross-sell our retail products to employees of our corporate clients.

On behalf of the Board of Directors, I am pleased to present the Annual Report and Accounts of Baiduri Bank Berhad for the financial year ended 31st December 2012. FINANCIAL RESULTS Both Baiduri Bank and Baiduri Finance performed better in 2012 than in the previous year. Operating Profit for the Group reached BND65 million, an increase of 40% compared to 2011. The Group’s Total Assets remain high at BND3.3 billion. Baiduri Bank’s equity increased from BND193 million in 2011 to BND215 million in 2012. Its Capital Adequacy Ratio of 15.6% was well above the minimum 10% set by the authorities. With a loan-to-deposit ratio of around 40%, the Bank is ready to finance more businesses and projects. A year after recording loss of BND2 million following changes in accounting policy imposed by the Autoriti Monetari Brunei Darussalam (AMBD) on all finance companies, Baiduri Finance returned to profitability in 2012 with its Profit before Tax amounting to BND 12 million.

Baiduri Finance Our 100% owned subsidiary, Baiduri Finance continues to maintain its position as market leader in vehicle financing. Total Hire Purchase Loans increased from BND 723 million in 2011 to BND 751 million in 2012. Thanks to our nine-month-long innovative multi-product “Say Yes” campaign, Baiduri Bank was able to capitalize on the large customer base of its subsidiary, Baiduri Finance, to offer a wide range of products proposed by its various business lines, and achieved a significant growth in sales. OPERATION HIGHLIGHTS Business Continuity Plan 2012 saw the completion of the Business Continuity Plan (BCP), a group wide project which began in 2011. The BCP is part of the Bank’s risk management programme aimed to provide structured responses and recovery procedures in the event of an emergency or disruptive event and is aimed to minimising interruptions to operations.

BUSINESS HIGHLIGHTS

Premises Upgrade and Branch Expansion Refurbishment of the external façade of the head office in Kiarong began in late 2011 to match Baiduri Bank Group’s new corporate branding of a professional and friendly corporation. The fully renovated head office was officially opened in December 2012. Baiduri Bank’s 13th branch located at the Times Square Shopping Centre started operation in July 2012.

Retail Banking Despite strict lending restrictions to individuals on unsecured loans and credit cards, new provisioning guidelines imposed by AMBD and strong competition from all banks, Baiduri Bank’s portfolio of new mortgage and unsecured loans grew in 2012. Under Wealth Management, the Bank offered

Enhancing Overall Customer Experience In 2012, Baiduri Bank undertook initiatives aimed to improve customer experience. This included a new branch network configuration project which seeks to redesign each branch so that it suits its market segment and its surrounding area. Together with a new set of uniforms for front liners, new


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Chairperson’s Statement Customer Service Standards for branches were set in early December 2012. These standards seek to improve customer service and ensure consistency. Technological Development In 2012, a number of internal systems were upgraded to provide better service to the customers and the integration with the AMBD Credit Bureau system was achieved. Our electronic channels (ATMs, internet banking) were upgraded in order to offer more services to customers in well secured environment. HUMAN RESOURCES At the end of 2012, Baiduri Bank Group employed 497 full time members of staff and 96 part-time or contract staff. Staff development programmes were intensified with emphasis on customer service, product knowledge and technical competencies. A total of 163 in-house and local training programmes took place. E-learning programmes were also introduced during the year. In November 2012, the Training Centre moved to a new location and was upgraded to a Learning and Development Centre. This new Centre has a model branch training facility. CORPORATE SOCIAL RESPONSIBILITY Supporting Local Charities Baiduri Bank Group continues to support local charities, especially child development. The “Baiduri Masters”, an annual golf event organized to raise funds for charity, remains the biggest golfing event in Brunei. Five charity and welfare organizations benefitted from the Baiduri Masters in 2012: Pusat Ehsan Al-Ameerah Al-Hajah Maryam, SMARTER, Learning Ladders Society, RIPAS Hospital Paediatric Haemoto-Oncology Centre, RIPAS Child Development Centre and the Special Education Unit of Ministry of Education. Community Development In support of community development, Baiduri Bank annually sponsors the World Blood Donor Day and Universal Children’s Day. In addition, for the first time in 2012, the Bank’s subsidiary, Baiduri Finance, joined forces with the Brunei National Road Safety Council in championing a three-month long road safety campaign which culminated with a fun-filled walkabout around Jerudong Park Playground. The event was organized in conjunction with the World Day of Remembrance for Road Traffic Victims, an annual event observed by the United Nations. AWARDS In 2012, Baiduri Bank won three prestigious international banking awards. For the first time, the Bank won the “Best Retail Bank Brunei 2012” from the Asian Banker. It also won the “Best Banking Group Brunei 2012” from World Finance magazine for the fourth consecutive year and the “Bank of the Year 2012” from The Banker magazine for the ninth time.

OUR PLANS FOR 2013 In accordance with our global strategy for growth, we continue to evolve to meet the needs of our customers. In 2013, we focus on three main areas: improving service quality and reliability; increasing professionalism in the workforce and promoting innovation through the use of advanced technology. Under IT, a number of exciting developments are envisaged including a mobile banking application, integration with the Ministry of Finance’s EPG system, instant card issuing and further enhancements to the Banks channels and systems. As a leading bank with strong commitment to the Brunei market, Baiduri Bank will continue to play an active role in the economic growth of the country and its national development programmes in order to meet the goals and objectives of Brunei’s Wawasan 2035. APPRECIATION On behalf of the Board of Directors, I would like to express our appreciation to the Government of His Majesty the Sultan and Yang Di-Pertuan for their support. I also wish to thank our shareholders and our clients for their continued support and confidence. In conclusion, I wish to record Baiduri Bank’s appreciation to the management and staff for their hard work and muchvalued contribution to a successful year.

YTM Pengiran Anak Isteri Pengiran Anak Hajah Zariah Chairperson

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Corporate Information Shareholders Baiduri Holdings Bhd Royal Brunei Airlines Sdn Bhd Royal Brunei Technical Services Sdn Bhd BNP Paribas

Board of Directors

YTM Pg Anak Isteri Pg Anak Hajah Zariah Binti Almarhum Pg Pemancha Pg Anak Haji Mohamed Alam (Chairperson)

YAM Pengiran Muda Abdul Fattaah

Hajah Ning-Lela binti Dato Paduka Haji Mohammad

Dato Paduka Timothy Ong Teck Mong

Francis Gerard Caze

Haji Abu Bakar Bin Haji Ibrahim

Bertie Cheng Shao Shiong


Corporate Information

MANAGEMENT COMMITTEE

Pierre Imhof Chief Executive Officer Ti Eng Hui

Deputy General Manager, Retail Banking and Branch Network

Andrew Young Chee Ann

Deputy General Manager, Operations Management Division

Hj Haliluddin Bin Dato Hj Talib

General Manager, Baiduri Finance

Yvonne Chan Eng Pheng

Senior Manager, Corporate Banking

Pg Azaleen Bin Pg Dato Hj Mustapha

Senior Manager, Treasury

Veronica Chong Nyet Hwa

Senior Manager, Human Resources and Finance

(Left to right): Andrew Young, Pierre Imhof, Veronica Chong, Pg Azaleen Bin Pg Dato Hj Mustapha, Ti Eng Hui, Hj Haliluddin Bin Dato Hj Talib, Yvonne Chan

9

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Corporate Information Awards and accolades in 2012, the Bank received three prestigious international banking awards: “Best Retail Bank Brunei 2012” from the Asian Banker for the first time, the “Best Banking Group Brunei” from World Finance for the fourth time and the “Bank of the Year Brunei” from the Banker, UK for the ninth time. The Bank of America Meryl Lynch gave Baiduri Bank recognition as a “Leading Commercial Payment Partner Bank in Brunei” for achieving a Straight-Through Processing (STP) rate of 95% in December 2012. Other recent achievements include “Company of the Decade 2001-2010” award by World Finance in 2011.

Baiduri Bank’s wholly-owned subsidiary, Baiduri Finance obtained the internationally recognized ISO9001 quality certification in 2003.

Auditors Deloitte and Touche

Corporate secretarial service provider Deloitte & Touche Management Services Pte Ltd


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2012 Financial Highlights Year ended December 31, 2012

BANK OPERATING RESULTS Year Ended December 31 2012

2011

101,455

104,908

91,569

92,390

1.27%

1.11%

15.08%

15.69%

100,000

100,000

2,551

2,721

784

752

2,092

2,344

215

193

(B$ in thousands, except per share information) For the Year Revenue (1) Net Operating income Return on assets Return on shareholders’ equity Shares issued and paid (in millions)

At Year End Total Assets Total Loans and advances (net) Total deposits Total shareholders’ equity

Contents Includes interest and Non interest income excludes interest expenses

(1)

Capital Adequacy Ratios (Bank)

2012

2011

2010

2009

Tier 1 (Core Capital)

15.60%

15.46%

17.48%

15.59%

Total Capital

14.53%

13.43%

14.96%

13.00%

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2012 Financial Highlights Year ended December 31, 2012

Group Total Revenue (Group 2012) ($’000)

Group Assets 4000

3500

Hire Purchase & Leasing

3000

B$’M

B$51,820 Others

B$23,106

2500

2000

1500

Consumer & Commercial Banking / Credit Card

1000

B$73,262

500

0

2009

2010

2011

2012

Years

Group Shareholders’ Funds

Group Customer Deposits 3500

250

234.87 3000

208.69

201.37

200

2500

150

B$’M

B$’M

170.78

100

2000

1500

1000

50 500

0

0

2009

2010

2011

2012

2009

2010

2011

2012

Years

Years

Group Customer Loans (net)

Group Net Profit After Tax

1500

60

1300

B$’M

42.973 39.88

40

36.68

B$’M

1100

900

17.52

20 700

0

500

2009

2010

2011

2012

2009

2010

Years

2011

2012

Years

Group Return On Total Assets

Group Total Income

2.00% 1.90%

140000

1.80% 1.70%

24432

27333

28989

80000

60000

1.00% 0.90%

102622

1.10%

101267

1.20%

100000

106384

B$’000

1.40% 1.30%

105558

1.60% 1.50%

%

22733

120000

Net Interest Income

40000

0.80% 0.70%

20000

0.60% 0.50%

0

2009

2010

2011

Years

2012

Non- Interest Income

2009

2010

2011

Years

2012

Corporate Highlights 2012

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Corporate Highlights BRUNEI’S BANKING SECTOR The banking environment in Brunei Darussalam continues to be competitive and challenging with more stringent policies imposed by the regulatory authorities on consumer spending. The introduction of the Credit Bureau in the fourth quarter of 2012 aims to improve credit risk management and help banks make more informed lending decisions and at the same time, instill greater financial discipline among borrowers. CORPORATE BANKING With in-depth knowledge of our corporate customers and the local market, our Corporate Banking Division’s strengths are in their flexible and fast response in assessing customer’s application for financing. In 2012, Baiduri Bank continued to actively support SMEs and Brunei’s economic diversification programme. We also focused on structured financing, offering tailor-made financing solutions to companies associated with oil and gas, government projects, as well as infrastructure contracts. Under the Enterprise Facilitation Scheme and the Micro-Credit Scheme, both in collaboration with the Ministry of Industry and Primary Resources, Baiduri Bank has since 2001, been providing assistance to local entrepreneurs to give them a head start in their business. Besides preferential rates on financing, Baiduri Bank also provides guidance to the SMEs on financial management. We promoted business internet banking services to our corporate customers, offering them more convenience in banking. We also developed synergies between our Corporate Banking Division and our Retail Banking Division with the objective of cross-selling our retail products to employees of our corporate clients. RETAIL BANKING Despite strict lending restrictions to individuals on unsecured loans and credit cards, new provisioning guidelines imposed by Authoriti Monetari Brunei Darussalam and strong competition from all banks, Baiduri Bank’s portfolio of new mortgage and unsecured loans grew in 2012. Wealth Management Under Wealth Management, the Bank rolled out several innovative products which included a Bonus Linked Fixed Deposit and two Certificates of Deposits with attractive interest rates bundled with credit cards. Sales in Foreign Currency Fixed Deposit and Brunei Dollar Fixed Deposit increased significantly. Retail Lending Retail Lending focused on sales activities, capitalizing on its strong corporate customer base to offer mortgage loan schemes for their staff members and working closely with property developers to provide end-financing. Retail Lending continues to offer a structured financial scheme for SME’s which provides fast approval and turnaround time designed for businesses that have been in operation for 2 years or more. Card Centre Baiduri Bank is currently the only bank to own an Internet Payment Gateway in Brunei and the only bank to hold franchise to four leading payment card brands namely: Visa, MasterCard, American Express and UnionPay. The Bank offers a complete range of card payment products from credit, debit to prepaid cards plus co-branded cards. Baiduri Smart Executive To further create differentiation between customer segments, Baiduri Bank introduced the “Baiduri Smart Executive” programme in August 2012. Designed for young executives and professionals and aimed to cultivate Baiduri Bank as their bank of choice, it offers benefits and privileges on bank products and services exclusively to Smart Executive members.


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Corporate Highlights CONSUMER FINANCING – BAIDURI FINANCE Baiduri Finance, Baiduri Bank’s wholly owned subsidiary, continued to be the market leader in vehicle hire purchase in the country, with total hire purchase loans increasing from BND 723 million in 2011 to BND 751 million in 2012. Baiduri Finance remains the only organization within the financial services sector to have been certified to ISO9001, the seal of quality management system. BRANCH NETWORK In 2012, Baiduri Bank embarked on a new branch network configuration project which seeks to redesign each branch to suit the market segment and its surrounding area with the objective to provide superior customer experience. This included specially designed layout with queuing system and dedicated counters for selected customer segments. The first of these branches, the 13th in our branch network began operations in July 2012, located in a new and fast expanding commercial area with close proximity to a number of other commercial areas as well as the main Government office complex, to cater for executives and professional level customers. Besides offering extended hour banking service, this branch also houses a Baiduri Smart Executive Centre, a dedicated centre for Smart Executive customers. We also undertook several initiatives to further enhance customer satisfaction and experience, such as the introduction of express counters to enable customers with less than 5 transactions to carry out their transactions within shorter waiting and serving time and corporate counters for big corporate clients with bulk deposits. In branches where Prestige Centre are not available, a Prestige counter will be assigned to serve our high-end Prestige customers. PROMOTIONAL CAMPAIGNS To promote our products and services and to reward customers for banking with us, Baiduri Bank held several promotional campaigns during 2012. A group wide nine-month long innovative multi-product campaign titled “Say Yes” was launched in March. Throughout the campaign, Baiduri Bank and Baiduri Finance customers had the chance to win attractive prizes in monthly draws by participating in a range of products including investment, loans, insurance and vehicle hire-purchase. Besides monthly draws, two brand new cars – a Ford Fiesta and a BMW 3 Series were put up for grabs in the mid-campaign and grand draws. During the year, we held several promotions where Baiduri cardholders get the chance to win attractive prizes. In January, to welcome new Baiduri UnionPay debit cardholders, a 3-month card usage campaign was rolled out whereby 5 UnionPay cardholders were selected and rewarded with exclusive holiday packages each month. In the “One Mall, One Amazing Card” campaign, Baiduri Bank teamed up with merchants at The Mall, Gadong for 2 months from November 2012 where customers who used their UnionPay debit cards to pay for purchases were eligible to instantly redeem free shopping vouchers of various values up to BND500.00 if they spend a minimum of BND20.00 at the outlets. In conjunction with Hari Raya Aidilfitri, a 2-month long Hari Raya promotion was held where cardholders can win prizes in a lucky draw with the use of the credit or debit cards at participating merchant outlets. In addition, a 2-month long “Baiduri Visa Olympics” promotion was also held where one lucky Baiduri Visa cardholders received an all-expense paid trip to London to watch the Summer Olympics with a companion.

Mr Pierre Imhof, CEO of Baiduri Bank presented the mock key to Dayang Junaidah Bte Hj Othman, winner of the grand prize of a BMW 3-series in the “Say Yes” Campaign. Picture shows a jubilant Dayang Junaidah hugging the mock key, amid cheers from her husband and claps from Mr Imhof.

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Corporate Highlights

Throughout 2012, Baiduri Bank held several promotions where Baiduri cardholders get to win attractive prizes. Above pictures show two lucky customers receiving their prizes from Ms Lee Ai Cheng, Senior Manager, Card Centre Sales and Service.

In addition, to encourage customers to utilize the bank’s electronic cannels, a 3-month long promotion from June to August 2012 titled “24 Hour Banking Convenience at your Fingertips” was conducted in conjunction with the introduction of the DES PowerKad electricity top-up availability on internet banking. Customers who utilized Baiduri Bank’s Personal or Business i-Banking facilities were automatically eligible to stand a chance to win prizes in the monthly draws. OPERATIONS MANAGEMENT Business Continuity Plan 2012 saw the completion of the Business Continuity Plan (BCP), a group wide project which began in 2011 as part of Group’s risk management programme. The BCP provides explicit guidelines and procedures to minimize interruption to operations during a crisis while at the same time, enable the Group to continue to provide the usual level of service to its customers. This involved the establishment of the Business Continuity Management (BCM) function in accordance to British Standards BS 25999. The phases included: risk management, business impact analysis, business continuity strategies, emergency response plans, emergency operations and crisis management. After the completion of the project, Baiduri Bank Group concentrated on the maintenance of BCP to ensure the plan is up-to-date. In December 2012, e-training was introduced. This was an internet site dedicated to informing and testing staff on their knowledge on the Group’s BCP. Facilities Upgrade

The Times Square Branch is the 13th branch in Baiduri Bank’s branch network and comprise a general banking counter and the Smart Executive Centre.

Baiduri Bank Group’s premises upgrading project continued in 2012 with the completion of the new Times Square Branch which began operations in July. This is the third of Baiduri’s in-mall branches with extended banking hours. The extended banking hours reinforce Baiduri’s dedication to deliver more accessible financial services and greater convenience for customers while enhancing customers


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Baiduri’s e-Banking Centre is a devoted resource centre where the public can find out more about Baiduri Bank’s array of electronic channels. The Centre also handles inquiries and registration for e-banking services.

experience with modern and comfortable branch design. During the year, two new premises were officially opened. In June, the new e-Banking Centre was officially launched. The e-Banking Centre is a devoted resource centre for the general public to find out more about Baiduri Bank’s array of electronic channels. The centre also handles customer inquiries and registration; and hold demos for either individual or organizations. Baiduri Bank’s newly renovated Headquarters in Kiarong was officially launched on 9th December 2012. Yang Berhormat, Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Haji Abdullah bin Begawan Mudim Dato Paduka Haji Bakar, the Minister of Communications was in attendance as the guest of honour. The premises underwent a makeover to revitalize its physical look projecting the Group’s corporate identity and reflecting the financial strength and strong image of the Baiduri Bank Group as one of the largest financial institutions in the country.

The newly renovated Baiduri Bank Head Office in Kiarong was officially opened in December 2012. Projecting Baiduri Bank Group’s corporate identity, the premises comprise modern facilities and spacious interiors with efficient space layout.

The renovated headquarter boasts of modern facilities, spacious interiors and more efficient space layout all intended to give the Bank’s employees and customers a more comfortable and enjoyable working and banking experience. At the inauguration of the new headquarters, a new set of staff uniforms was also launched. Technological Development Throughout 2012, Baiduri Bank continued its efforts to provide better facilities and services to its customers by carrying out enhancement to all its Cash Deposit Machines (CDM) located throughout Brunei Darussalam. All Baiduri CDMs are now equipped with the capability to accept all Brunei currency polymer notes. In addition to cash withdrawal, a host of features are available on CDMs. This include cash and cheque deposit, fund transfer, mobile top-up, cashcard top-up, and bill payments for credit card, electricity, water, telephone and hire purchase. Baiduri Bank launched a new feature on their internet banking service which allows individual and companies to purchase Department of Electrical Services (DES) PowerKad online, giving customers more ways to manage their bill payments using the Bank’s electronic channels. Baiduri Bank also partnered with KRISTAL Astro, a multi-channel direct-to-home satellite TV service, to allow settlement of bills through the Bank’s ATMs and internet banking facilities. These additional services in 2012 reflect the Bank’s commitment to innovation in the Brunei market.

After officiating the opening of the new Head Office, the Minister of Communications, Yang Berhormat Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Haji Abdullah toured the premises accompanied by Baiduri Bank CEO, Pierre Imhof who also briefed him on the products and services offered by the Bank.

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Corporate Highlights HUMAN RESOURCE DEVELOPMENT At the end of 2012, Baiduri Bank Group employed 497 full time members of staff and 96 part-time or contract staff. Staff development programmes were intensified with emphasis on customer service, product knowledge and technical competencies. A total of 163 in-house and local training programmes took place. E-learning programmes were introduced during the year. In November 2012, the Training Centre moved to a new location and was upgraded to a Learning and Development Centre which has a model branch training facility.

In conjunction with the opening of Baiduri’s newly renovated Head Office, a new set of uniforms was also launched. The picture above shows the uniforms being modeled by members of staff.

Enhancing Professional Financial Planning Skills Recognizing the need to constantly evolve to remain relevant with changing times, developing the staff to become more qualified financial planners has always been a priority of the Bank. The aim is to equip staff with the latest knowledge and expertise in order that Baiduri Bank, as a leading Bruneian Bank, is able to continuously meet the changing needs of customers whilst enabling staff to reach the highest level ofperformance at work. In April 2012, fifteen personnel received certificates in financial planning out of which, 3 of them achieved the prestigious Chartered Financial Consultants (ChFC) certificates at a certificate award ceremony held at the Bank’s Head Office. The CHFC is the premier designation in financial consulting and is internationally recognized. Emergency Response Training In keeping to its objective to create a workforce that is able to respond in all type of emergencies, Baiduri Bank Group regularly organized training in cardiopulmonary resuscitation (CPR) for its staff. This training is an effort to ensure employees are equipped to handle emergency situations where CPR is needed in a working environment. At the end of 2012, 252 employees had successfully completed the CPR course conducted at the National Resuscitation Centre (NRC) with seven staff members having been certified as CPR trainers. Recognition for Helping Combat Crime

Baiduri’s new Learning and Development Centre began operations in November 2012. Equipped with modern training facilities, the centre also has a model branch training facility.

Baiduri Bank has invested heavily over the years in EMV technologies and provided regular education to cardholders and merchants to protect against card fraud. As a result, two credit card fraudsters using cloned foreign credit cards for paying at Baiduri Bank’s merchant outlets in early 2011 were promptly apprehended by the Police with the assistance of Baiduri’s security personnel, charged and jailed for the crime. An appreciation ceremony was held on 10th February 2012 in recognition of the exemplary work carried out by Pengiran Hj Shadan bin Pg Hj Yakub, Head of the Bank’s Security Control Department and Muhammad Sofwan bin Abdullah, a security control personnel. Both also earned commendations from the Police. Baiduri Bank’s CEO Pierre Imhof (centre) performing CPR on a mannequin during a CPR Training Session held at the Training Centre.


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Corporate Highlights Promoting Baiduri as a Preferred Employer In an effort to promote banking as a career and to attract and identify potential candidates to join Baiduri Bank Group, the Group’s Human Resources Department organized a Career Day roadshow which was held at the Rizqun International Hotel on 18th May. The event showcased the many activities that the Group was involved in, including those to do with staff development, social and sports activities, the Group’s CSR initiatives as well as career opportunities within the Group. CUSTOMER APPRECIATION To demonstrate Baiduri Bank Group’s appreciation to customers and associates for their continuous support, Baiduri Bank Group has annually, been hosting customer appreciation events. 2012 has been no different. On 2nd March, in celebration of the Chinese Lunar New Year, the Group hosted an extravagant dinner at Pusat Insani, Seria for 500 of their customers and business partners from the Belait District while around 1,500 customers and business associates in the Brunei-Muara District were hosted to a similar dinner the following evening at the Indera Samudera Grand Hall, The Empire Hotel and Country Club, Jerudong. During both events donations were presented to several schools as financial assistance to underprivileged students. On 10th October, in conjunction with Hari Raya Aidilfitri, another banquet was held for customers and business associates at the Jerudong Park Amphitheater. Around 2,000 guest from throughout Brunei attended the event, which was named “Malam Silaturrahim” meaning “Night of Friendship”. The guest of honor at the event was the Chairperson of Baiduri Bank, Yang Teramat Mulia Pengiran Anak Isteri Pengiran Anak Hajah Zariah Binti Al-Marhum Pengiran Pemancha Pengiran Anak Haji Mohamed Alam. The theme of the event was ‘Mencapai Kecemerlangan’ meaning ‘Reaching New Heights’ to signify the Group’s achievements as one of the leading banks in the country. Five organizations that had significantly benefited from Baiduri Bank Group’s charity programme took the opportunity to present tokens of appreciation to the Group. In celebration of Deepavali, Baiduri Bank Group hosted a dinner for its customers and business associates at the Indera Samudra Grand Hall, The Empire Hotel & Country Club, Jerudong on 4th November. 550 customers and business associates from the local Indian community attended the event. The Guest of Honor for the event was His Excellency Mr. Lalduhthlana D. Ralte, High Commissioner of India to Brunei. During the event, Baiduri Bank Group made donations to the Bandar Seri Begawan Indian Association and the Kuala Belait Indian Association to support the advancement of inter-cultural awareness in the country.

A Career Day roadshow as held in May 2012 to promote Baiduri Bank Group as a preferred employer. The roadshow showcased the various career opportunities that are available within the Baiduri Bank Group.

Baiduri Bank’s Chairperson, HRH Pengiran Anak Isteri Pengiran Anak Zariah was the Guest of Honour at the Malam Silaturrahim 2012. HRH and members of the Royal Family being greeted on arrival at the Jerudong Park Amphitheatre by members of the Management as well as the Organizing Committee.

Ungu, a popular Indonesian pop band was among the artistes that performed during the dinner.

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Corporate Highlights PROMOTING FINANCIAL LITERACY AMONG BRUNEIANS Throughout 2012, as part of Baiduri Bank’s ongoing initiative to raise financial literacy among its customers and the general public, Baiduri Bank continued to organize a number of seminars and roadshows on various topics ranging from financial planning to investment. To kick off the year, Baiduri Bank in collaboration with BNP Paribas Investment Partners, the asset management arm of BNP Paribas, hosted an investment seminar on 11th January, exclusively for about 100 invited corporate clients, private investors and customers from the private sector, the oil and gas industry as well as some senior government officials from the public sector. The seminar was held at The Empire Hotel and Country Club. The talk, presented by Mr Alex Ng, Chief Investment Officer, BNP Paribas Investment Partners, Hong Kong highlighted several factors investors should be considering when investing in Asia during 2012 and beyond. Baiduri Bank’s Wealth Management Centre continued to organize roadshows throughout the country in an effort to raise awareness of the importance of financial planning.

Ms Siti Aminah Hj Abd Rahman, a Senior Officer at Baiduri Bank’s Wealth Management Centre giving a presentation to officials from the public sector, associations and village heads in the Tutong District.

On 9th June, a roadshow was held at the Convention Centre in Kuala Belait for staff of Kuala Belait Municipal Department on the topic of financial planning through lifestyle choices. It was part of the Bank’s programme to reach out to the local community and educate them with financial planning knowledge to help them manage their finances better. The roadshow included a seminar conducted by Siti Aminah Hj Abdul Rahman, Senior Officer at Baiduri Bank’s Wealth Management Centre. Her talk covered debt management, cash management, risk management and wealth management, all components of financial planning. Guests later had the opportunity to have one-on-one consultation sessions with financial planning professionals from Baiduri Bank. Similar roadshows were held on 21st June in Tutong for senior government officials, schools, associations and village heads in the district and on 28th June for employees of Royal Brunei Airlines. On 10th August, a financial planning seminar was held for staff members of Adinin Group of Companies at the Serikandi Café and Restaurant in Kuala Belait. The seminar was presented by Ms. Yik Pei Ngo, Manager of Baiduri Bank Kuala Belait Branch who is also a qualified Chartered Financial Consultant. Ms. Ngo shared with the audience on the importance of having sound financial health and how Baiduri Bank Group can offer products and services suited to their individual needs. An area of focus in the presentation was on retirement planning as an essential aspect of overall financial planning exercise. A similar talk was held on 24th November at the Belait Indian Association’s multi-purpose hall in Seria for members of the association.

In 2012, Baiduri Bank continued to hold financial planning roadshows to promote financial literacy among Bruneians.

SUPPORTING THE DEVELOPMENT OF LOCALS IN BUSINESS In 2012, Baiduri Bank continued to actively support the development of SMEs in Brunei Darussalam. Local Business Development Programme (LBD) For the eighth consecutive year, Baiduri Bank continued to work hand in hand with Asia Inc Forum and other major partners in the Local Business Development (LBD) Programme. The LBD is a platform to stimulate thinking and dialogue on issues, challenges and practical learning that are important for local business development in Brunei. In 2012, the programme consisted of one seminar, a two-day workshop and one forum based on the Blue Ocean Strategy with the theme “Creating Breakthrough Growth in your Business”. Participants in the programme were made up of SMEs, many of whom are customers of Baiduri Bank. The Ministry of Industry and Primary Resources (MIPR), Microsoft, SKS Wood and Indramas were the other partners in this programme.


21

Corporate Highlights BSP Coaching Scheme Initiative (CSi) Baiduri Bank also partnered with Brunei Shell Petroleum (BSP) in the BSP Local Business Development Coaching Scheme Initiative (CSi), a scheme aimed to develop local SME vendors registered with BSP. The scheme is aimed at fast-tracking entrepreneurial and managerial capabilities among BSP vendors, many of whom are Baiduri Bank clients. Baiduri Bank provides facilitators and coaches for the scheme. CORPORATE SOCIAL RESPONSIBILITY Baiduri Bank has been an active and regular supporter of local charities since its inception. The Bank has a policy of donating in kind, usually in response to a specific need that has been identified. One of the CSR objectives of the Bank is to raise public awareness about the needs of special people and to promote activities that would contribute towards special people gaining acceptance in the wider society. Raising Funds through Sports The Baiduri Masters is the main activity in which public participation is invited to help raise funds for charity. The golf tournament, which started in 1996, is the most prestigious and widely attended golf event in Brunei. A total of 931 golfers participated in a 6-day event held over two weekends from 25th to 27th May and 1st to 3rd June 2012 at the Royal Brunei Airlines Golf Club. For the first time in 2012, Baiduri Masters was featured in Par Golf, a regional golfing magazine. At the Prize Presentation Dinner, Baiduri Bank Group donated at total of BND 55,000 to six charity and welfare organizations as part of the proceeds from the event.

Helping Raise Funds through Fun Baiduri Bank Group in a show of support for people with special needs participated in the Pusat Ehsan Charity Bazaar 2012. During the Charity Bazaar, staff members helped set up a games booth to raise funds along with numerous personal contribution from staff members. The green booth was also visited by Her Royal Highness Princess Hajah Masna, Acting Minister of Foreign Affairs and Trade who shared a light moment with the CEO, Mr Pierre Imhof as she participated in playing the popular Tin Pyramid game. Pusat Ehsan is among the many welfare organization actively supported by Baiduri Bank annually as part of its Corporate Social Responsibility (CSR) programme.

Baiduri Bank Group has participated in the Pusat Ehsan Charity Bazaar annually to help raise funds for the centre.

Baiduri Bank CEO Pierre Imhof explaining to HRH Princess Masna, the Guest of Honour who dropped by the Baiduri Booth after officiating at the event.

HRH Princess Masna trying her skills at the Tin Pyramid game.

Visitor who participated in the activities at the Baiduri booth.

22


Corporate Highlights Instilling Entrepreneurship among Students through Competition Baiduri Bank partnered with the Co-Curricular Department, Ministry of Education through their Skills and Entrepreneurship Division to organize the BigStart Entrepreneurship Competition 2012. The competition objective was to instill entrepreneurial spirit and build business acumen among secondary and college students in Brunei. Fourteen schools participated, out of which five schools were selected to receive a BND200 grant to run a two-month business project as part of the competition. The grant that the schools received was used for the purpose of carrying out the business plans that the teams presented in front of a panel of judges from Brunei’s business sector, including the Brunei Industrial Development Authority (BINA) and Livewire, as well as judges from the Ministry of Education. At the end of the project, the team that made the most profit was declared the winner. The project was fully sponsored by Baiduri Bank.

In a Private-Public Partnership (PPP), Baiduri Bank teamed up with the Ministry of Education to organize the “BigStart Entrepreneurship Competition 2012” for secondary school students designed to develop entrepreneurial spirit and business acumen among the youth. (Left) The winning team receiving their prize; (Right) The team who organized the competition made up of officials from Baiduri Bank and the Ministry of Education.

Community Development • World Intellectual Property Day Baiduri Bank joined hands with Brunei Economic Development Board (BEDB) to hold the “Intellectual Property Poster Design” in conjunction with the World Intellectual Property Day which fell on the 27th April. The contest was launched on the 1st March and was organized to increase awareness amongst youth on the link between creativity, innovation and intellectual property through creative design. 45 youth registered for the contest to design posters based on three aspect of intellectual property: patents, trademarks or industrial designs. The prize presentation ceremony was held at the Knowledge Hub in Anggerek Desa. On hand to give away the prizes was Yvonne Chan, Senior Manager, Corporate Banking Division of Baiduri Bank together with Dr Abd Manaf Metussin, Deputy CEO of BEDB. The World Intellectual Property Day is celebrated every year on the 26th April by member states of the World Intellectual Property Organization (WIPO).

With the theme “Be a Hero and Save Lives”, staff came to donate blood at the annual Blood Donation Campaign dressed as their favourite hero.

• Blood Donation Drive On 26th June, Baiduri Bank Group held its annual blood donation drive. Organized by the Human Resources Department, the purpose is to help increase the stock of blood at RIPAS Hospital Blood Bank and to cultivate the spirit of caring among the bank’s employees. As with past years, Baiduri Bank Group opened the participation to their customers and members of the public who were willing to donate. A total of 60 people comprising of staff and customers joined the initiative. A staff member having his health checked by a medical officer prior to donating blood.


23

Corporate Highlights • Junior Achievement (JA) Programme In 2012 Baiduri Bank became a proud supporter of the Junior Achievement (JA) Programme which was launched for the first time in Brunei by the Brunei Economic Development Board (BEDB). Junior Achievement is an organization that is dedicated to educating students about workforce readiness, entrepreneurship and financial literacy through experimential, hands-on programmes. 10 Baiduri Bank employees volunteered their time at schools to teach the JA Economics for Success course to students between the ages of 10 to 14 years old. Through the course, students learnt about wise money management, economics and business through games that trigger their innovative thinking. The aim was to leave a positive impact on the students’ behavior as future professionals and consumers.

Baiduri Bank volunteers with officials from the Brunei Economic Development Board (BEDB) in a group picture at an event to award certificates to students who participated in the Junior Achievement Pilot Programme at the Jerudong International School (JIS).

• World Day of Remembrance for Road Traffic Victims

Yang Amat Mulia Pengiran Muda Abdul Mu’min presenting a lucky draw prize at the end of a Walkabout held at Jerudong Park Playground on 18 November 2012 organized by Baiduri Finance in conjunction with the World Day of Remembrance for Road Traffic Victims;

Baiduri Bank CEO Pierre Imhof joined 2,000 participants in the warming up exercise prior to the start of the Walkabout.

In conjunction with the annual World Day of Remembrance for Road Traffic Victims, Baiduri Finance in partnership with the National Road Safety Council and other co-campaigners organized a 3-month long road safety awareness campaign which culminated with a treasure hunt themed Walkabout on 18th November 2012 held at the Jerudong Park Playground. The Walkabout drew 2,000 participants. The Guest of Honour at the Walkabout was Yang Berhormat, Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Haji Abdullah bin Begawan Mudim Dato Paduka Haji Bakar, the Minister of Communications. Yang Amat Mulia Pengiran Muda Abdul Mu’min, son of His Royal Highness Prince Mohamed Bolkiah and Her Royal Highness Pengiran Anak Isteri Pengiran Anak Hajah Zariah, the Chairperson of Baiduri Bank was among the participants. The Brunei National Road Safety Council (BNRSC) was the lead facilitator in the Road Safety Awareness Campaign while Baiduri Finance was the lead campaigner. Co-campaigners comprised the Brunei Automobile Traders Association (PPAB), the General Insurance Association of Brunei (GIAB), Takaful Brunei Am Sdn Bhd, Insurans Islam TAIB Sdn Bhd, the Red Crescent Society of Brunei and the Co-Curriculum Department of the Ministry of Education, with Jerudong Park Playground as an event partner in the Walkabout. Participants in action during the Walkabout.

24



Baiduri Bank’s CEO Pierre Imhof and Baiduri Finance General Manager Haji Haliluddin in a group photo with Yang Berhormat, Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Haji Abdullah, the Minister of Communications and representatives from the Brunei National Road Safety Council and other co-campaigners after the launch of the 3-month Road Safety Campaign in conjunction with the World Day of Remembrance for Road Traffic Victims in 2012.

• Universal Children’s Day Baiduri Bank continued to demonstrate its commitment to community development by being the main sponsor for the Universal Children’s Day Celebration hosted by Community Development Department of the Ministry of Culture, Youth and Sports. In 2012, the event was celebrated in the form of a forum which took place from the 20th to the 22nd November at two venues: the Dewan Persidangan, Kuala Belait and the Dewan Rataie in Temburong. The theme “Appreciate Our Voices” stressed the importance of a child’s right to express his or her views and to be heard. 300 students from 15 secondary schools throughout Brunei participated. The forum was facilitated by officials from Baiduri Bank, the Department of Community Development, the Ministry of Health, Pusat Dakwah Islamiah, Department of Brunei Museums, Narcotics Control Bureau, Anti- Corruption Bureau, Youth Development Centre, BruCert and Katak Hijau Relief Aid Organization. The forum saw children putting forward their views on topics such as financial planning, personal safety on the Internet, entrepreneurship, family values, education, religion and health, environment, culture, and more. The forum marks the second time that the Government has been open to input, views and opinions from children under the age of 15, highlighting the simple and unique perspective that children possess when compared with their adult counterparts. Environmental Conservation In 2012, Baiduri Bank Group continued to maintain its commitment towards environmental conservation by participating in a number of initiatives.

At the Universal Children’s Day Forum held in the Dewan Persidangan, Kuala Belait on 20th and 21st November 2012, besides providing financial support, Baiduri Bank staff also participated as facilitators.

• Supporting Rehabilitation of Orphaned Orang Utans Baiduri Bank made a donation of BND 3,000 to Jerudong International School (JIS) for a project to design and construct a first class training facility to assist in the rehabilitation of orphaned orang utans at Sepilok Orang Utan Center in Sandakan, Sabah. The whole project is handled by JIS students under the supervision of teachers and an architectural company which specializes in the field of sustainable design and construction. This project will not only help the orphaned orang utans but allow the students to develop their own vision for the project and gain a unique experience.


25

Corporate Highlights • Donation of Garden to Municipal Department In support of the Bandar Seri Begawan “City in the Garden” initiative, Baiduri Bank embarked on a project to landscape a vacant piece of land and transform it into a “green” garden as a gift to the people of Brunei. In designing the garden, Baiduri Bank had taken care to select plants that are weather sustainable and can withstand going without water a few days and chose solar-powered garden lights to conserve energy. The “Bandar Seri Begawan City in the Garden” Campaign is an initiative by the Bandar Seri Begawan Municipal Department with the objective to portray Bandar Seri Begawan as a green and clean city. The completed garden was officially handed over to the Municipal Department on 14th September 2012 in a ceremony that was held at the garden itself. The garden is located between the Hassanal Bolkiah Highway and Baiduri Bank’s Head Office in Kiarong.

Awang Hj Ismail Bin Hj Abdul Manaf (centre), the Deputy Permanent Secretary at the Ministry of Home Affairs cuts a ribbon to officially open the garden;

INTERNATIONAL AWARDS In 2012, Baiduri Bank Group received three major banking awards in recognition of its excellent performance in the Brunei market. Best Retail Bank Brunei 2012 from Asian Banker In March 2012, Baiduri Bank was presented with the Best Retail Bank in Brunei Award by the Asian Banker Magazine at the 11th International Excellence in Retail Financial Services Award Ceremony which took place at the Marina Bay Sands Hotel, Singapore. Winners were chosen based on outstanding annual performance of their retail banking unit, sustainability as a franchise over a long period of time and across economic cycles, a well-defined franchise in the chosen marketplace, transparency and accountability of business model, clear sales and execution skills at the product level, rigorous risk management capabilities, superior business and operational processes and technology, strong penetration and efficiency of distribution channels, and focus on developing human resources to support the bank’s strategy and ethical banking.

The guest of honour (seated right) taking a break at the gazebo with Pg Hj Abd Rahman bin PSI Pg Hj Ismail (seated centre), the Chairman of the Municipal Board, Bandar Seri Begawan;

Best Banking Group in Brunei 2012 Award from World Finance Baiduri Bank Group was again recognized as the Best Banking Group in Brunei for 2012 by World Finance Magazine, UK. This is the fourth year in a row that Baiduri Bank Group has won this prestigious award, demonstrating the bank’s consistent performance and its commitment towards operational excellence.

Pierre Imhof, Baiduri Bank CEO and the guest of honour taking a leisurely stroll in the garden;

Bank of the Year Award, Brunei 2012 from The Banker Magazine For the ninth time since 2002, Baiduri Bank again won the country award for the Bank of the Year 2012 presented by The Banker Magazine, UK. The recognition was for the best overall performance in the previous period incorporating performance criteria, qualitative achievements and strategic initiatives.

A group picture of the guests (in light green top) and staff of Baiduri Bank in front of the garden with the majestic Jame’ Asr Hassanil Bolkiah Mosque, Kiarong in the background.

Financial Statements 2012

28


Report of The Directors The directors have pleasure in presenting their annual report and consolidated audited financial statements of Baiduri Bank Berhad (the Bank) and its subsidiary (the Group) for the financial year ended December 31, 2012.

PRINCIPAL ACTIVITIES The principal activities of the Bank and the Group are to carry on the business of banking and related financial services including dealing in investment securities and e-financial services. There have been no significant changes in the nature of these activities during the financial year.

RESULTS

Bank

Group

B$’000

B$’000

Balance at December 31, 2011

14,293

11,798

Total profits for the financial year

32,352

36,678

(14,153)

(15,627)

Transferred from retained profits to: - Statutory reserve - Other reserve

(4,295)

(4,295)

Dividends paid

(10,500)

(10,500)

17,697

18,054

Balance at December 31, 2012

RESERVES AND PROVISIONS There were no other material transfers to or from reserves and provisions during the financial year other than those disclosed in the financial statements. FINANCIAL STATEMENTS The state of affairs of the Bank as at December 31, 2012 is set out in the balance sheet. These financial statements were approved by the Board of Directors on March 7, 2013.

DIVIDEND

B$ Dividend paid in respect of the financial year ended December 31, 2011

10,500,000

At the forthcoming Annual General Meeting, a total dividend of B$11,200,000 in respect of the current financial year ended December 31, 2012 will be proposed for shareholders’ approval.


Report of The Directors Directors The directors in office during the financial year and at the date of this report are: YTM Pengiran Anak Isteri Pengiran Anak Hajah Zariah YAM Pengiran Muda Abdul Fattaah YM Dato Paduka Timothy Ong Teck Mong Hajah Ning-Lela binti Dato Paduka Haji Mohammad Haji Abu Bakar bin Ibrahim Francis Caze Bertie Cheng Shao Shiong

Auditors The auditors, Deloitte & Touche, have indicated their willingness to accept re-appointment. On behalf of the board

Director

Director

Director

Brunei Darussalam Date: 7 March 2013

29

30


Independent Auditor’s Report to the members of Baiduri Bank Berhad and subsidiaries

We have audited the accompanying financial statements of Baiduri Bank Berhad (the Bank) and its subsidiary (the Group) which comprise the balance sheets of the Bank and the Group as at December 31, 2012, the profit and loss statements, statements of changes in equity and cash flow statements of the Bank and the Group for the year then ended, and a summary of significant accounting policies and other explanatory notes. DIRECTORS’ RESPONSIBILITY The Bank’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Brunei Darussalam Companies Act, Cap. 39 (the “Act”), the Brunei Darussalam Banking Order 2006 (the “Order”), and accounting principles generally accepted in Brunei Darussalam. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

OPINION In our opinion, a) the financial statements of the Bank and consolidated financial statements of the Group are properly drawn up in accordance with the provisions of the Act, the Order and accounting principles generally accepted in Brunei Darussalam, so as to give a true and fair view of the state of affairs of the Bank and the Group as at December 31, 2012 and of the results, changes in equity and cash flows of the Bank and the Group for the year ended on that date according to the best of our information and the explanations given to us, and as shown by the books of the bank and the Group; and b) we have obtained all the information and explanations that we required.

AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

DELOITTE & TOUCHE Certified Public Accountants

NG HUI HUA Brunei Darussalam Authorised Auditor Brunei Darussalam Date: March 7, 2013


31

Profit & Loss Statements Year ended December 31, 2012

Note

Bank

Group

2012 B$’000

2011 B$’000

Change

2012 B$’000

2011 B$’000

Change

Interest income

67,186

67,693

-0.7%

118,966

120,161

-1.0%

Less: Interest expense

(9,650)

(12,346)

-21.8%

(16,344)

(18,894)

-13.5%

Net Interest Income

57,536

55,347

4.0%

102.622

101,267

1.3%

Fee income

9,759

9,693

0.7%

9,759

9,693

0.7%

Fee expense

(236)

(172)

37.2%

(236)

(172)

37.2%

Net fee income

9,523

9,521

0.0%

9,523

9,521

0.0%

Other operating income

24,510

27,522

-10.9%

19,466

17,812

9.3%

91,569

92,390

-0.9%

131,611

128,600

2.3%

(20,908)

(20,633)

1.3%

(24,860)

(24,378)

2.0%

(1,042)

(859)

21.3%

(1,162)

(747)

55.6%

(23,601)

(23,767)

-0.7%

(47,577)

(43,156)

10.2%

(45,551)

(45,259)

0.6%

(73,599)

(68,281)

7.8%

(6,917)

(11,200)

-38.2%

(12,768)

(18,122)

-29.5%

(36)

(11)

227.3%

(36)

(11)

227.3%

-

(105)

100.0%

-

(105)

-100.0%

(6,953)

(11,316)

-38.6%

(12,804)

(18,238)

-29.8%

39,065

35,815

9.1%

45,208

42,081

7.4%

-

-

0.0%

-

(18,988)

-100.0%

39,065

35,815

9.1%

45,208

23,093

95.8%

(6,713)

(5,573)

20.5%

(8,530)

(5,573)

53.1%

32,352

30,242

7.0%

36,678

17,520

109.3%

32,352

30,242

7.0%

36,678

17,520

109.3%

Dividend per ordinary share (B$)

0.105

0.102

2.9%

0.105

0.102

2.9%

Basic earnings per share (B$)

0.324

0.302

7.0%

0.367

0.175

109.3%

Diluted earnings per share (B$)

0.324

0.302

7.0%

0.367

0.175

109.3%

Return on Assets, (ROA) – Before Tax, %

1.53

1.32

15.91%

1.36

0.67

102.99%

Return on Assets, (ROA) – After Tax, %

1.27

1.11

14.41%

1.10

0.51

115.69%

Return on Equity, (ROE) – After Tax, %

15.08

15.69

-3.89%

15.62

8.40

85.95%

INCOME

Total Operating Income Less: Personnel expenses Provision for end of service benefits Other overhead expenses Total operating expenses Less: Provision for loans losses Loans/financing written off Provision for diminution of investments Total impairment charges and provisions Profit from operations Less: Exceptional written off of dealers’ commission Profit before taxation after exceptional written off Less: Income tax expense Profit after taxation / Profit for the year Attributable to: Equity holders of the parent

32


Balance Sheets December 31, 2012

Note

Bank

Group

2012 B$’000

2011 B$’000

Change

2012 B$’000

2011 B$’000

Change

1,246,626

1,569,502

-20.6%

1,249,443

1,572,657

-20.6%

Balances with AMBD

109,571

130,213

-15.9%

154,521

174,444

-11.4%

Government Sukuk

23,990

26,974

-11.1%

23,990

26,974

-11.1%

291,396

180,562

61.4%

291,396

180,562

61.4%

783,855

752,068

4.2%

1,534,930

1,473,644

4.2%

25,249

25,249

0.0%

-

-

0.0%

Fixed assets

18,314

17,860

2.5%

19,228

19,045

1.0%

Other assets

51,952

18,130

186.6%

53,301

18,811

183.4%

2,550,953 2,720,558

-6.2%

3,326,809 3,466,137

-4.0%

ASSETS Cash and short term funds

Investments Loans and advances

1

Investments in subsidiaries

Total assets LIABILITIES AND EQUITY

2,092,005

2,344,133

-10.8%

2,976,349

3,193,136

-6.8%

176,124

122,668

43.6%

42,867

2,968

1,344.3%

2,701

3,306

-18.3%

-

-

0.0%

Other liabilities

48,271

43,292

11.5%

53,579

46,855

14.4%

Deferred taxation

10,778

9,914

8.7%

10,825

9,961

8.7%

Provision for taxation

6,470

4,493

44.0%

8,318

4,524

83.9%

2,336,349 2,527,806

-7.6%

3,091,938 3,257,444

-5.1%

Deposits from customers

2

Deposits from banks and other financial institutions Groups balances payable

Total liabilities SHAREHOLDERS’ EQUITY

100,000

100,000

0.0%

100,000

100,000

0.0%

Statutory reserve fund

87,753

73,600

19.2%

107,663

92,036

17.0%

Other permanent reserves

26,851

19,152

40.2%

27,208

16,657

63.3%

214,604

192,752

11.3%

234,871

208,693

12.5%

Total liabilities and equity

2,550,953

2,720,558

-6.2%

3,326,809

3,466,137

-4.0%

COMMITMENTS AND CONTINGENCIES

1,267,385

1,307,167

-3.0%

1,267,385

1,307,167

-3.0%

Share capital

Total shareholders’ funds / Total equity


33

Statements of Changes In Equity Year ended December 31, 2012

BANK

Share capital B$’000

Statutory reserve B$’000

General reserve B$’000

Retained profits B$’000

Total B$’000

100,000

59,558

-

13,152

172,710

Net profit for 2011

-

-

-

30,242

30,242

Transfer during the year

-

14,042

4,859

(18,901)

-

Dividend for 2010

-

-

-

(10,200)

(10,200)

100,000

73,600

4,859

14,293

192,752

Net profit for 2012

-

-

-

32,352

32,352


-

14,153

4,295

(18,448)

-

Dividend for 2011

-

-

-

(10,500)

(10,500)

100,000

87,753

9,154

17,697

214,604

Balance as at 31/12/2010



GROUP

Share capital B$’000

Statutory reserve B$’000

General reserve B$’000

Retained profits B$’000

Total B$’000

Minority Interest B$’000

Total equity B$’000

100,000

77,994

-

23,379

201,373

-

201,373

Net profit for 2011

-

-

-

17,520

17,520

-

17,520


-

14,042

4,859

(18,901)

-

-

-

Dividend for 2010

-

-

-

(10,200)

(10,200)

-

(10,200)

100,000

92,036

4,859

11,798

208,693

-

208,693

Net profit for 2012

-

-

-

36,678

36,678

-

36,678


-

15,627

4,295

(19,922)

-

-

-

Dividend for 2011

-

-

-

(10,500)

(10,500)

-

(10,500)

100,000

107,663

9,154

18,054

234,871

-

234,871




34


Cash Flow Statements Year ended December 31, 2012

Bank

Group

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

67,186

67,693

118,966

120,161

(9,650)

(12,346)

(16,344)

(18,894)

Operating fees and commission receipts

9,523

9,521

9,523

9,521

Recovered on loans previously provided/written off

3,270

2,309

3,270

2,309

Receipts on other operating activities

21,189

25,213

16,145

15,503

(20,022)

(20,194)

(23,981)

(23,973)

(10,127)

(18,031)

(33,530)

(56,528)

61,369

54,165

74,049

48,099

Funds advances to customers

(38,740)

57,357

(74,090)

22,761

Other operating assets

(33,822)

11,034

(34,490)

30,456

(198,672)

818,110

(176,887)

852,689

(5,850)

(52,793)

(3,679)

(56,426)

(215,715)

887,873

(215,097)

897,579

(3,872)

(3,426)

(3,872)

(9,435)

(219,587)

884,447

(218,969)

888,144

(5,629)

(3,446)

(5,866)

(3,822)

48

1,866

48

1,867

Net (additions)/disposals of investments

(107,850)

(25,585)

(107,850)

(25,585)

Net cash outflow from investing activities

(113,431)

(27,165)

(113,668)

(27,540)

(10,500)

(10,200)

(10,500)

(10,200)

(10,500)

(10,200)

(10,500)

(10,200)

Net (decrease)/increase in cash and cash equivalents

(343,518)

847,082

(343,137)

850,404

Cash and cash equivalents at beginning of the year

1,699,715

852,633

1,747,101

896,697

Cash and cash equivalents at end of the year

1,356,197

1,699,715

1,403,964

1,747,101

Cash flows from operating activities: Interest income Interest expenses

Cash payments to employees and suppliers Payments on other operating activities Cash flows from operating profit before changes in operating assets and liabilities (Increase)/decrease in operating assets

(Increase)/decrease in operating liabilities Deposits and placements from customers, banks and other financial institutions Other operating liabilities Net cash flows (used in)/ from operating activities before income tax Income tax paid Net cash (outflow)/inflow from operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment

Cash flows from financing activities Dividend paid Net cash outflow from financing activities


35

Other Financial Information December 31, 2012

1 LOANS AND ADVANCES 1.1 Total loan and advances

Bank

Group

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

637,122

632,003

1,389,483

1,354,845

302,679

257,556

302,679

257,556

-

-

20

70

11,866

14,317

11,866

14,317

Gross loan and advances

951,667

903,876

1,704,048

1,626,788

Less: Interest in suspense

(100,438)

(89,170)

(100,623)

(89,333)

851,229

814,706

1,603,425

1,537,455

- General

-

-

-

-

- Specific

(62,374)

(62,638)

(68,495)

(63,811)

783,855

752,068

1,534,930

1,473,644

Loans and advances Overdrafts Lease receivables Interest receivables

Less: Loan loss provisions

Net loan and advances

Bank

1.2 Total loan and advances by sector

Group

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

7,890

10,436

7,890

10,436

721

949

721

949

Manufacturing

31,552

30,464

31,552

30,464

Transportation

33,750

32,875

786,131

755,787

Infrastructure

47,612

51,475

47,612

51,475

Traders

137,080

129,583

137,080

129,583

Services

106,664

92,367

106,664

92,367

Constructions and property financing

237,283

208,937

237,283

208,937

Tourism

6,488

7,062

6,488

7,062

Telecommunication and information technology

12,195

21,541

12,195

21,541

228,644

227,236

228,644

227,236

849,879

812,925

1,602,260

1,535,837

Agricultural Financial

Personal and consumption loans Total

36



1.3 Non-Performing Loans a. NPL Amount

Group

Bank 2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

25,170

29,799

26,877

31,207

139,531

120,744

139,531

120,744

9,991

11,828

9,991

11,828

174,692

162,371

176,399

163,779

(100,438)

(89,170)

(100,623)

(89,333)

74,254

73,201

75,776

74,446

- General

-

-

-

-

- Specific

(67,374)

(62,638)

(68,495)

(63,811)

6,880

10,563

7,281

10,635

Loans and advances Overdrafts Interest receivables Gross amount Less: Interest in suspense

Less: Loan loss provisions

Net amount

b. NPL Ratios

Group

Bank 2012 %

2011 %

2012 %

2011 %

Gross non-performing ratio

8.72

8.98

4.73

4.84

Net non-performing ratio

0.72

1.17

0.43

0.65

2 DEPOSITS FROM CUSTOMERS 2.1 By type of deposit

Bank

Group

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

Demand deposits

379,120

328,254

379,120

328,254

Savings deposits

346,121

296,761

1,104,924

1,035,520

1,366,764

1,719,118

1,492,305

1,829,362

2,092,005

2,344,133

2,976,349

3,193,136

Fixed deposits Total


37


Bank

3 DIVIDENDS

Group

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

Net dividend paid to ordinary shareholders

10,500

10,200

10,500

10,200

Gross ordinary dividend

10,500

10,200

10,500

10,200

10,500

10,200

10,500

10,200

On ordinary shares

Total dividend

2012

2011

Gross per share cent

Dividend net of tax B$’000

Gross per share cent

Dividend net of tax B$’000

10.5

10,500

10.2

10,200

Authorised: Final dividend paid

4 RELATED PARTY TRANSACTIONS Related parties in these financial statements refer to members of the holding company’s group of companies. Some of the Bank’s transactions and arrangements are with related parties and subsidiary companies and the effect of these on the basis determined between the parties are reflected in these financial statements. (i) Transactions with Directors, Close relatives of a director and other related entities: a. Balance Sheet

Directors 2012 B$’000

2011 B$’000

Credit cards (secured)

140

26

Total

140

26

Liabilities

-

-

Deposits

30,395

26,211

30,395

26,211

Letter of credit

-

-

Guarantees

-

-

Undrawn facilities

-

149

Other commitments and contingencies

700

700

Total

700

849

Total Off-balance sheet items

38



b. Profit and loss statement

Directors 2012 B$’000

2011 B$’000

Income

-

1

Interest income

-

-

Other income

-

-

Total

-

1

Expenses

-

-

823

652

Fees

-

-

Other expenses

-

-

823

652

2012 B$’000

2011 B$’000

Short-term employee benefits

-

-

Long-service leave

-

-

Post-employment benefits

-

-

Total

-

-

Interest expenses

Total

Compensation paid to Directors:


39


(ii) The key management personnel (KMP) and other individuals and entities KMP

a. Balance Sheet Assets

Other Individuals and entities

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

4,029

3,687

2,431

2,454

325

305

163

140

-

-

-

-

4,354

3,992

2,594

2,594

3,390

2,677

379

463

Borrowings

-

-

-

-

Other liabilities

-

-

-

-

3,390

2,677

379

463

Letter of credit

-

-

-

-

Guarantees

-

-

-

-

Undrawn facilities

-

-

-

-

1,360

1,486

340

311

1,360

1,486

340

311

Loans and advances (exc. Credit cards) Credit cards (Secured) Other assets Total Liabilities Deposits

Total Off-balance sheet items

Other commitments and contingencies Total

KMP

b. Profit and loss statement Income

Other Individuals and entities

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

161

153

172

105

-

-

-

-

161

153

172

105

65

52

7

8

Fees

-

-

-

-

Other expenses

-

-

-

-

65

52

7

8

Interest income Other income Total Expenses Interest expenses

Total

40



(iii) The group related party, shall include subsidiaries, associates and other related companies a. Balance Sheet

Subsidiaries

Associates

Other related Companies

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

-

-

-

-

50,694

50,665

Other assets

205

41

-

-

9

8

Total

205

41

-

-

50,703

50,673

133,257

119,700

-

-

58,647

46,560

-

-

-

-

-

-

2,906

3,347

-

-

-

-

136,163

123,047

-

-

58,647

46,560

Letter of credit

-

-

-

-

881

242

Guarantees

-

-

-

-

17,274

17,314

Undrawn facilities

-

-

-

-

36,603

17,132

Other commitments and contingencies

-

-

-

-

125

125

Total

-

-

-

-

54,883

34,813

100

100

5,500

10,475

Assets Loans and advances

Liabilities Deposits Borrowings Other liabilities Total Off-balance sheet items

% of shares held Dividends paid

In respect of the unsecured loan and advances granted to related parties, the Bank has sought the approval from the Authority in terms of the Banking Order 2006 and is in the process of finalizing the regulatory requirements with AMBD. b. Profit and loss statement

Subsidiaries

Associates

Other related Companies

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

Interest income

-

-

-

-

3,188

2,906

Other income

-

-

-

-

-

-

Total

-

-

-

-

3,188

2,906

19

959

-

-

-

-

Fees

-

-

-

-

157

309

Other

-

-

-

-

-

-

Total

19

959

-

-

157

309

Income

Expenses Interest expenses


41


5 CAPITAL ADEQUACY The capital adequacy ratios are as follows:

Bank

Group

2012 B$’000

2011 B$’000

2012 B$’000

2011 B$’000

203,404

192,752

223,510

208,693

11,200

-

11,200

-

(25,249)

(25,249)

-

-

189,355

167,503

234,710

208,693

1,158,569

1,103,298

1,911,907

1,826,966

144,920

143,671

195,815

194,097

1,303,489

1,246,969

2,107,722

2,021,063

15.60

15.46

10.60

10.33

14.53

13.43

11.14

10.33

Capital Core capital (Tier I Capital) Supplementary capital (Tier II Capital) Less: Investment in subsidiaries Total capital base Total risk-weighted amount Risk-weighted amount for credit risk Risk-weighted amount for operational risk Total risk-weighted amount Capital ratios Core capital (Tier I) Ratio,% Total Capital Ratio,%

The basis for the core capital (Tier 1 capital) has been changed from 2012 to exclude the proposed dividends as requested by the Authority.

6 SIGNIFICANT RISKS ASSOCIATED WITH THE BANK’S OPERATIONS Accepting and managing risk is central to the business of the Group and is an important source of competitive advantage. The Board of Directors is accountable for establishing and maintaining an environment that manages risk in an effective and efficient manner. This includes a robust system of limits, controls and reporting processes. Management and senior executives track key performance indicators, investigates and reports on effectiveness of risk management systems to the Board of Directors. The Group’s internal audit department also provides an independent assessment of this process. The following discussion on risk management concentrates on the Group’s main areas of risk:

(i) Credit risk

Credit risk is the risk of financial loss that results from customers failing to meet their obligations. Credit risk arises primarily from lending-related activities and represents Group’s major risk type. The Board of Directors approves major prudential policies and limits that govern large customer exposures and industry concentration. The Board of Directors also appoints independent credit officers in each business areas. These credit officers would work with the line managers to ensure that approved policies are applied appropriately and achieve optimal returns on the Group’s risk exposure. In respect of its lending-related activities, management regularly review the amount of risk accepted in related to one borrower or groups of borrowers, industry segments, level of non-performing loans and adequacy of provisioning requirements. Exposure to credit risk is also managed in part by obtaining collateral. Some of the assets typically included as collateral are property, assignment of rental income, salary and deposit placement.

42



(ii) Liquidity risk

Liquidity risk is the risk that the Group is unable to meet its cashflow obligations as and when they fall due. To manage the risk, the Group monitors and maintains sufficient liquid assets to ensure that the liquidity risk exposure is managed and minimised. Additionally, the Group has to comply with the regulations and guidelines of Autoriti Monetari Brunei Darussalam in maintaining minimum cash balances with the Autoriti Monetari Brunei Darussalam. (iii) Interest/Financing rate risk Interest/financing rate risk is the risk of earnings and value of financial instruments caused by fluctuations in interest/financing rates. Sensitivity to interest/financing rates arises from the differences in the maturities and re-pricing dates of assets and liabilities. These differences are monitored and managed by management to ensure that the risk exposure is minimised. These include actively reviewing its interest/financing rate to ensure that the Group receives an optimal and yet competitive interest/financing spread.

7 INVESTMENTS IN SUBSIDIARIES

Current Year

By Bank

Previous Year

Market value B$000

% Holiding

Cost B$’000

Market value B$000

% Holiding

Name of Company

Principal Activity

Cost B$’000

Baiduri Finance Berhad

Finance Company

25,249

-

100

25,249

-

100

Baiduri Securities Sdn Bhd

Share brokers and dealers

-

-

51

-

-

51

in securities and investments of all kinds Baiduri Securities Sdn Bhd ceased operation after January 31, 2002 and had filed for de-registration in December 2010. Full provision has been made for the cost of this investment.



Directors The Directors in office during the financial year and at the date of this report are: YTM Pengiran Anak Isteri Pengiran Anak Hajah Zariah YAM Pengiran Muda Abdul Fattaah YM Dato Paduka Timothy Ong Teck Mong Hajah Ning-Lela binti Dato Paduka Haji Mohammad Haji Abu Bakar bin Ibrahim Francis Caze Bertie Cheng Shao Shiong

Certification We, the undersigned, being the Senior Manager-Finance and Chief Executive Officer of Baiduri Bank Berhad certify jointly that:(a) the above accounts and statements have been prepared in accordance with the format and definitions prescribed by the Authority in terms of sections 28 (4) and (5) of the Banking Order 2006. (b) the information contained in these statements have been extracted from the audited financial account and statements.

Veronica Chong Senior Manager, Finance 7 March 2013

Pierre Imhof Chief Executive Officer 7 March 2013

43

44


Offices, Branches and ATM Network BAIDURI BANK GROUP Bandar Seri Begawan P.O. Box 2220, BSB BS 8674 Negara Brunei Darussalam Kuala Belait P.O. Box 1368, Kuala Belait KA1131 Negara Brunei Darussalam Seria P.O. Box 25, Seria KB1190 Negara Brunei Darussalam Website Address www.baiduri.com Email Address [email protected]

BAIDURI BANK BERHAD List of Offices Head Office Block A, Units 1-4, Kiarong Complex Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8311 Fax No: (673) 245 5599 Corporate Banking Division Block A, Units 1-4, 2nd Floor, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8311 Fax No: (673) 245 5558 Retail Banking Division Block A, Units 1-4, 1st Floor, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8321 Fax No: (673) 245 5572 Operations Management Division Block B, Units 1-3, 1st Floor, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8381 Fax No: (673) 245 5656

Card Centre Block A, Unit 8, Kiarong Complex, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8300 Fax No: (673) 245 4184 Loan Centre Block A, Unit 6, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8433 Fax No: (673) 245 4193 Wealth Management Centre Unit 10, Level 2, Seri Kuilap Complex Kg Kuilap, Bandar Seri Begawan Tel No: (673) 223 2154 / 56 / 57 Fax No: (673) 223 2155 E-Banking Centre Block B, Unit 4, 1st Floor, Kiarong Complex Lebuhraya Sultan Hassanal Bolkiah BE1318 Customer Helpdesk: (673) 242 5644 Fax No: (673) 242 5741 Email: [email protected] Call Centre Block A, Unit 8, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 244 9666, 245 4187 Business Services Centre Block B, Units 1-5, Kiarong Complex Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8300 Fax No: (673) 245 5599

PRESTIGE CENTRES Kiarong Ground Floor, Block A, Units 1-4, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8300 Fax No: (673) 245 2888

Kiulap Unit 10, 1st Floor, Seri Kuilap Complex Bandar Seri Begawan BE1518 Tel No: (673) 223 6905 / 6 / 10 Fax No: (673) 223 6904 Seria Unit 10, 1st Floor, Jalan Omar Ali Seria KB 2733 Tel No: (673) 322 2450 ext. 213/215 Fax No: (673) 322 1070

BRANCH NETWORK Beribi Branch (Self-Service) Unit 1, Ground Floor, Sumbangsih Bahagia, Kompleks Perindustrian Beribi Bandar Seri Begawan BE1118 Kiarong Branch Ground Floor, Block A, Units 1-4, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah BE1318 Tel No: (673) 226 8300 Fax No: (673) 245 2888 Kiulap Branch Unit 10, Ground & 1st Floor Seri Kiulap Complex Kg Kiulap BE1518 Tel No: (673) 223 6905 / 6 / 10 Fax No: (673) 223 6904 Kuala Belait Branch Units 2 & 3, Tang Ching Ying Bldg Jalan Sungai, Kuala Belait KA2231 Tel No: (673) 333 0650 Fax No: (673) 334 2297 Muara Town Branch Ground Floor, Bangunan Tiga Tingkat Pekan Muara BT1128 Tel No: (673) 277 1700 / 1 Fax No: (673) 277 1702


Offices, Branches and ATM Network Sengkurong Branch Units 1 & 2, Ground Floor, Sengkurong Complex, Kg Sengkurong A BG1121 Tel No: (673) 266 3960 Fax No: (673) 266 3959 Seria Branch Unit 10, Jalan Sultan Omar Ali, Seria Tel No: (673) 322 2450 / 438 / 960 / 963 Fax No: (673) 322 2433 Serusop Branch Unit 1, Block A, Komplex Delima Jaya Simpang 62, Jalan Muara Kg Delima Satu BB4713 Tel No: (673) 234 3288 Fax No: (673) 234 3285 Supa Save Gadong Branch Units 6-8, SupaSave Gadong Kg Mata-Mata BE1718 Tel No: (673) 242 0627 / 29 Fax No: (673) 242 0909 The Mall Branch Unit G-30, Ground Floor, The Mall Abdul Razak Complex, Gadong BE3519 Tel No: (673) 242 1498, 242 1398 / 96 Fax No: (673) 242 1415 Times Square Branch Unit F26, 1st Floor, Times Square Kampong Jaya Setia, Mukim Berakas A Tel No: (673) 234 5111 Fax No: (673) 234 5112 Tutong Branch Unit 1, Ground & 1st Floor, Tutong Central Mall Kg Petani, Pekan Tutong TA1141 Tel No: (673) 426 0707 Fax No: (673) 426 0714 Yayasan Branch G.25, Ground Floor, Block C Yayasan Sultan Haji Hassanal Bolkiah Complex BS8711 Tel No: (673) 223 3233 Fax No: (673) 222 1891

OFF-SITE ATM LOCATIONS Brunei International Airport Bunut Post Office Centrepoint, Gadong Giant Hypermarket, Tasik RImba Grand City Hotel, Batu Bersurat Hua Ho Manggis Mall Hua Ho Mall, Tanjong Bunut Mail Processing Centre, Old Airport Berakas Petani Mall, Tutong RIPAS Hospital Seri Q-lap Mall, Kiulap Soon Lee Megamart, Kuala Belait Soon Lee Lambak Kanan Soon Lee Sungai Liang SupaSave, Mabohai SupaSave, Panaga Times Square Mall, Berakas

BAIDURI FINANCE (a wholly-owned subsidiary of Baiduri Bank) Head Office Sumbangsih Bahagia, Units 1-3 Ground and 1st Floor Komplex Perindustrian Beribi Gadong BE1118 Tel No: (673) 242 6800 Fax No: (673) 245 0877 Kuala Belait Unit G20, Ground Floor Kompleks Harapan Jalan Setia DiRaja, Kuala Belait KA3131 Tel No: (673) 333 0570 Fax No: (673) 333 0572 Email: [email protected] or [email protected]

45