In July 2023, Baiduri Bank maintained its issuer credit rating of A-/A-2 with Stable Outlook from Standard & Poor’s (S&P) Global Rating. This achievement marks the second year running where the Bank achieved an A- rating.

According to S&P, the long-term credit rating is two notches higher than the Bank’s stand-alone credit profile which can be attributed to a strong banking position in the country based on its capital management and steady earnings. The rating reflects S&P’s expectation that the Bank will maintain its sound business stability and franchise, maintaining about 20% of the banking system’s deposits and having the second-largest branch and ATM network in the country.

S&P also cited that the Bank’s retail business is likely to grow on the back of digitalisation of customer onboarding and servicing, as well as the development of wealth management and insurance products.

According to Ti Eng Hui, CEO of Baiduri Bank, “We have a professional management team that focuses on corporate banking, retail banking, consumer financing and securities trading and investments. Through our combined expertise and extensive local market knowledge, we are able to strengthen our competitive standing in the country.”

S&P anticipates that the Bank will see credit growth of 4% to 5% over the next 12 to 18 months which is likely to come from wholesale customers as the government looks to boost the economy and support local firms through contracts from GLCs, FDI projects, energy sector and infrastructure development.

Standard & Poor’s are the world’s leading provider of credit ratings. With more than 1 million credit ratings on government, corporate, financial sector and structured finance entities and securities, S&P ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence.