With a combination of conservative excess liquidity policy, rigorous interest rate management and enhanced risk-based pricing for retail and corporate lending the bank was able to increase its net interest margin to 3.62% in 2007, as well as extend the bank’s net profits by 78% to $8.8m, providing an increased 11.95% return on equity, the highest since its inception 14 years ago.
Its total retail lending portfolio reached $249.4m in 2007, representing an increase of 16.8% and a very strong performance in a small, competitive market. Baiduri also set up a dedicated wealth management unit and in 2007 this business increased by 98.6% to BN$103.3m. By leveraging on the American Express brand, Baiduri Bank was able to further expand its merchant base and card payment acquiring volume by 21.43% from 2006 to 2007, further strengthening its number one position in the merchant acquiring business. Also electronic channels handled 15% of all bill payments in January 2007.
