All rights reserved. Copyright of Autoriti Monetari Darussalam. No part of this publication may be reproduced in any material form or by any means, electronic or mechanical, including photocopying, recording or in any information storage or retrieval system without prior permission from Autoriti Monetari Brunei Darussalam, except for permitted fair dealing under the Copyright Order 2000. © Copyright 2020 His Haji Hassanal Mu’izzaddin Waddaulah Ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien Sultan and Yang Di-Pertuan of Brunei Darussalam

CONTENTS

1 Chairman’s Sabda 1 8 Financial Infrastructure 26 Credit Bureau Highlights 26 2 Managing Director’s Foreword 2 Enhancing Access to Finance 27

3 AMBD in Brief 4 9 Communications and Outreach 28 Main Objectives 4

Board of Directors 5 10 International Relations 29 Executive Management 5 Agreements 29 Organisational Chart 6 Memorandum of Understanding 29 Departments 7 Chairing and Hosting of Regional Forums 29 Memberships in International AMBD Employees 8 30 Organisations Other Engagements with Counterparts 30 4 The Year in Review 9 Economic Review 9 11 Organisational Development 31

Monetary Sector Statistics 11 Developing People 31 Financial Sector Statistics 12 A Better Work Environment 31 FSBP (2016-2025) Highlights 17 AMBD Internship Programme 31 Hosting Knowledge Sharing Sessions 31 5 Monetary Stability 18 Heart of AMBD Initiatives 32

6 Financial Stability 19 12 Governance 33 Financial and Monetary Stability Regulatory Developments 19 33 Committee Supervision and Enforcement 22 Investment Advisory Committee 33 Human Resource Committee 33 7 Financial Development 24 Audit Committee 34 Islamic Finance 24 Risk Management Committee 35 Capital Market 24 FinTech 25 13 Financial Statements 36

CHAIRMAN’S SABDA

His Royal Highness Prince Haji Al-Muhtadee Billah Ibni His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, The and Senior Minister at the Prime Minister’s Office As Chairman of Autoriti Monetari Brunei Darussalam (AMBD)

بسم هللا الرحمن الرحيم السالم عليكم ورحمة هللا وبركاته الحمد هلل رب العالمين، والصالة والسالم على أشرف المرسلين، سيدنا محمد وعلى آله وصحبه أجمعين، وبعد

2019 was a year in which important milestones were Our Financial and Monetary Stability, Investment achieved by AMBD. The inaugural publication of the Advisory, Human Resource, Risk Management and Financial Stability Report is particularly noteworthy. Audit Committees have all continued to carry out The report presents our annual assessment of the risks important work respectively. Each of them have been and vulnerabilities in the domestic financial sector, operating effectively with regular reporting to the particularly of the banks and finance companies, in Board. I commend the Chairs of these committees for which the former currently holds the biggest market their professional leadership. share in the industry. The assessment presented in the report informs actions that are needed to promote the I welcome Dayang Hajah Rokiah binti Haji Badar’s resilience of the financial system and contributes to an appointment as Managing Director. AMBD is fortunate increased understanding amongst the financial to have her as a successor to Awang Yusof bin Haji industry and the public at large of issues that are Abdul Rahman, who retired in October 2019 after five relevant for safeguarding the stability of the Brunei years of service. Awang Yusof's contributions to AMBD financial system. have been immense. Under his leadership, AMBD attained several key achievements including the In supporting the national vision of becoming a digital publication of Financial Sector Blueprint (2016-2025) economy, AMBD recognises the importance of and Digital Payment Roadmap (2019-2025); the launch building a financial ecosystem that encourages of the National Payment and Settlement Systems and innovation. To achieve this goal, AMBD commenced the Collateral Registry System; and the issuance of the the State of FinTech Assessment in Brunei Darussalam award-winning BND50 note to commemorate the 50th Project where inputs were sought from over thirty Anniversary of the Currency Interchangeability stakeholders ranging from government agencies to Agreement, just to name a few. I thank Awang Yusof tech companies and start-ups. Drawing on best for his significant contributions and wish him a happy practices from leading FinTech hubs, the project has retirement and good health. I wish to acknowledge the provided a critical evaluation of Brunei Darussalam's commitment and energy of our Board of Directors, our FinTech ecosystem and highlighted areas for executive management, and all officers and staff, in improvement. A FinTech roadmap for developing a continuing our mission to serve the public’s interest. niche FinTech industry is currently in the pipeline, as well as a White Paper intended to assist interested parties to better understand the FinTech landscape in Brunei Darussalam.

A dedicated Payment System Oversight function was set up to oversee the development, regulation and supervision of payment systems in Brunei Darussalam. One of its first priorities will be to develop the appropriate legal and regulatory frameworks that will allow AMBD to better regulate and develop the payments ecosystem in Brunei Darussalam.

1 2 Managing Director’s Foreword 2 variety the intermediation stability maintaining to Since and continue enormous Yang Managing I levels can itself information Process submission the discipline minimum introduced operations system To the of aimed inaugural surveillance which first financial introduction inclusion to surveillance 2019 withstand in A deliver FOREWORD MANAGING DIRECTOR’S would core the our our remain general serve Basel the maintain financial , bi on Mulia its under AMBD to - financial element these has of financial provided annual Financial outstanding a (ICAAP) establishment of . sector’s like to promote II 'business As adverse of publication work Director public contributions enough of resilient, public and all Awang capital, the build tools stressed framework, on confidence objectives and of part to worked Internal sector more its as three of risk system the undertaken financial in sector a . documents begin overall . Stability well on capital our valuable of Significant policy a interest shocks, by Yusof capital numerical times as . work capital greater perception AMBD scenarios the supervisor the specific pillars hard work This as Capital paying usual' of in in and among my AMBD risk in supporting to 2011 strong progressive bin 2019 adequacy AMBD . system the formulation of Risk to if is to annual . needed the input has understanding first AMBD This to of by basis and level sustain Haji These stress improvements to tribute Adequacy . , . Financial risk score develop AMBD’s has ensure Dashboard the market AMBD foundations proactively has surveys currency, to Annual . when Abdul review and is and . AMBD for . indicators received report ensure It at Basel by done documents the itself AMBD to . achieved implementation to whether is that smooth above priority in participants Meanwhile, macroprudential my macroprudential they a and Stability development Rahman, determine among my Report during so bank conducted continuing II and ensuring of outlines through predecessor, identify the it Assessment successfully were هللا وبركاته ورحمة عليكم ورحمة هللا وبركاته far he banks’ framework happen honour the is minimum الرحيمالرحمن هللا الرحمن الرحيم has and the . financial through banking to has provide able normal market Report as banks, for health made been bank fund risks and first laid . the the the the the the the his its to to to of of In : mitigate allocation the supervisory supervision a to Following services product operators companies issued market AMBD technology remains risk AMBD vigilant initiatives detection encourage institutions’ enterprises guidelines bear relatively practices businesses introduced important The also and terrorism anti market framework on pre roll the designated highest adapted management money cybersecurity بسم - huge السالم requisite out to is and places about that conduct disclosure . these smaller takaful relevant can (AML/CFT) reviewing international Recognising conventional of . of its to agenda as and to was frameworks the goes specialised were to laundering costs they incident risks the The encourage risk the resources cyber well manage risks have high cyber non . the for financial then industry risk . - beyond offer and threat In based regime guidelines This for of . with reporting as tailored a Having for financial the importance based money intrusion supervision September a security reporting . extended insurance the stable insurance maintaining market that best technology and entail will consistent and of by supervision financial AMBD the financial players compliance pertaining institutions financial cyber approach implemented combating the allow the practices, Islamic for businesses changing . in identifying financial to fast framework sectors . It the - to was companies who regulators of crimes 2019 sector on ensure New institutions sector sector’s small is for changing the and risks financial financial system cyber . to framework banks fair hoped checks may also , to in a AMBD system, the . guidelines the guidelines banking, and and is Simultaneously, areas the comprehensive based 2019 more the enhance and and in not technological for products amended security, made and . financing in and remains sector professions to institutions that Risk framework framework remittance 2017 . be continued trends that equitable . order Similarly, be effective effective financial medium on Though finance Takaful - able capital based up , . t more carry were were hese their best and the the an to to to of of in and sector the mobilisation and i regulatory more the peer On understand financial consumer resources financial easily information AMBD However, industry focus identified FinTech embarked digital to development In is ready financial contributed also The platform, companies, Sandbox, and harnessing It country nitiatives increasing has provide registration banking the open - continuing takaful development services to . on came to clarity This understood has been - transformation . . ecosystem peer development consumers embrace . as decisions a niche can new decisions, we knowledge on requirements We disclosure also a effort financial technology digital and to demand . about we of system, which exciting financing, of up more a unlock have Two for opportunities also easier project of areas enforced alternative the continue insurance our is the peer with in remittance of . interested also financial enabling approved by domestic years continued This tips most the for include Brunei which such in to access to FinTech the alone side, of commitment to lending setting to consumers the expected for on mobile digital empower goes potential the see to assess the into capital suited industry, transform sources social peer FinTech still as Darussalam for we support products and need framework FinTech is industry to and movement the a financial market our out - platforms the the led - through dominates released the show to insufficient solutions, media to faster cloud market of to them entry - a for the efforts industry financial of peer industry to facilitate FinTech on current merchant the the industry financial to their that ensuring and funds developments requirements . - players . make industry, the based services The to . to financing of financial growth and guidelines These our sector support in the . the make services support through other solutions three state which needs that assessment the Regulatory outside enhancing Therefore, that as market informed products acquirer easy financial that on FinTech provide growth for we well of AMBD in sound of sector . hand, more there Such and this has will the the the the the the the the are . for on as to of in is . them those impressed Since utilised times Management successfully productive also enhancements outcomes, worked commitment In AMBD Director’s Awang to Finally, can AMBD dynamic stability risks, the has order express new meet been pleased for who there arriving will look itself on more Dayang Dayang Hajah Yusof’s with to decade and of their these accomplished continued unlock behalf work by . better forward and our the is an assess I diversified productively to System to am implemented continuous at the still across challenges independent exemplary in and deepest to share financial of AMBD confident achieve resources deliver the dedication, to a AMBD, encourage . navigate Managing Director, AMBD Director, Managing guidance our lot another Reducing all organisation that financial in Rokiah binti Haji Badar Haji binti Rokiah in . our . institutional to support appreciation the system, leadership institutional current let October that and consultant in be mandate, through our past productive me and our expertise sector, paperwork digitalisation, in capacity done and . take the year to I advice efforts Human status 2019 am and dimensions various develop hard period and to we to for this but excellence very year , and identify which . our maintain have I to to and All Yang work as opportunity have and grateful . ahead transform emerging talent Resource we be Board we of a process made can . . target Much . Mulia us more more enter been I have plan 3 We the am we be to of of at a

2 Managing Director’s Foreword 3 AMBD in Brief 4 AMBD the regulations Brunei Autoriti AMBD INBRIEF MAIN OBJECTIVESMAIN public fulfils Darussalam Monetari interest and its objectives prudential . Brunei . Under under Darussalam standards, the AMBD the 4 3 2 1 AMBD and Order, (AMBD) oversee Order, 2010 safeguarded systems interbank AMBD The efficient To customers in conduct Darussalam, AMBD and particular To reserves circulation to interchangeable Brunei Under To Darussalam work development AMBD’s financial To is operate a 2010 financial responsible achieve assist , ensure National foster sound AMBD prudential with to the is . secondary regulations Darussalam by to . payment the provide on in and Currency . payment carrying the and services in institutions is which ensure Payment the and within a the overall empowered by and currency the abroad for with industry safe economy a role systems stability to ensuring allows formulating develop out the standards digital maintain the that establishment Interchangeability supervisor manner ensure and and to after and sector the board systems financial support and national AMBD . Settlement to is platform following financial AMBD financial Singapore, a that fully issue while arrangement, of well our a of domestic financial economic sector to backed sound the - Dollar conducts currency and functioning and market financial : providing stakeholders for stability issue financial Systems . Agreement financial more and consumers’ This the at to institutions up infrastructure development prudential ensuring and par notes oversight institutions is oversee by is price efficient were functioning fair . Brunei to financial This where foreign both promote and progressive regulations service (CIA) established system, all are interests allows stability and of coins, and currency AMBD . Dollar in them to system operating in exchange payment between to protect market market secure Brunei Brunei AMBD issue their will are of in by in in is EXECUTIVEMANAGEMENT 3. 2. 1. Note: Yang Yang Yang Yang Yang BOARD OF DIRECTORSOF BOARD Members Members Chairman Deputy Chairman Yang Yang Yang Mulia Mulia Mulia Mulia Mulia Mulia Mulia Berhormat Awang Dato Dayang Awang Dayang Dayang Dayang Dato Seri Yusof Setia Seri Mardini Hajah Hajah Hajah Hajah (SFSB) BruneiIslamic ReligiousCouncil of and(MUIB) Member Yang ( Solicitor AttorneyOffice General’sGeneral, Yang ( Economy andFinance Ministry of(Economy), SecretaryPermanent Yang ( ofEducation Minister Yang ( MinisteratthePrime MinisterandMinister’sFinance Officeand ofEconomy II Yang ( OfficeatPrime the Minister’sMinister Yang ( AffairsofHome Minister binHaji Yang OfficePrime Minister’satTheSenior Minister Ibni HajiPrince Al HisHighnessRoyal ( theManagingDirectoras AMBD ofSection underAMBD 13, 2010 Order, Yang ( Director Managing theSectionAMBDAMBD2010 ofunderOrder,as 13, Yang ( bin 5 30 30 10 21 30 30 30 30 Setia Haji October Haji January August January 2018 January August2018 2018 January 2018 January 2018 January 2018 January His Majesty SultanHajiMajestyHis Awang Awang Sufinah Noorrafidah Rashidah Rokiah Mulia Mulia Mulia Mulia Mulia Berhormat Berhormat Berhormat Berhormat Abd bin Apong Rahman Metussin 2019 Haji 2019 Haji 2018 Dayang HajahRokiah bintiDayangHaji Badar RahmanHajibin Abd Yusof Awang Dato Seri HajahDayang Dr. binti binti - Hamzah Muhtadee binti Eddie Dayang HajahMay Dayang - - - - served - - - - - Dato Seri Seri Dato Seri Dato Seri Dato Pehin Present) Present bin Present) 31 4 31 Present) Present) Present) Haji binti Haji October 2019 Haji Haji bin December 2019) December December 2019) December as Setia Badar Haji Orang Kaya Seri Seri Kaya Orang Sahat Baki a ) Sabtu member Billah Sulaiman Zuraini Setia Setia Setia served HajiAwang Hassanal of as Awang HajiAwang Dr. AbdulHaji Awang ) the served a binti Hajibinti Sharbawi Fa’ezah Acting Acting (Monetary Deputy (Regulatory Deputy Managing member Awang HajibinAbdullahMohdAminLiewAwang Board Bolkiah as Metussin Kerna a from of Assistant Assistant member Managing Managing binti Haji Ahmad Ariffin Ahmad Hajibinti the Hamzah 30 Director Operations/Development Mu'izzaddin Dato Seri Seri Dato Board & January of Supervision) bin Hajibin the Managing Managing Mokti from Syariah Director Director 2018 binHaji Sulaiman Board 30 Setia to Baki January bin Hajibin Mohd from Waddaulah 4 Financial SupervisoryFinancialBoard October Director Director ( 30 Dr. 2018 January ) Haji Awang Abu Bakar Abu HajiAwang ) 2019 to (Corporate (Monetary 31 2018 & . December International) Daud to 31 December Operations) 2019 Services) . 5 2019 .

3 AMBD in Brief 3 AMBD in Brief 6 AUTORITI MONETARI BRUNEI DARUSSALAM ORGANISATION CHART

Financial and Monetary Investment Human Resource Risk Management Managing Director Audit Committee Stability Committee Advisory Committee Committee Committee

Corporate Strategy and Communications Governance and Integrity Corporate Secretary Financial Risk Internal Audit Intelligence Management Corporate Planning Human Capital Corporate and Development Strategy Communications Legal Affairs

Project Management

DMD DMD Monetary Operations/Development and International Regulatory and Supervision

AMD AMD AMD AMD Monetary Operations Development, International, Economics and FinTech Corporate Services Regulatory and Supervision

Administration Currency Management Financial Development Banking Policy Capital Market

Procurement Banking Supervision Takaful/Insurance Monetary Management International

Accounts and Finance Financial Consumer Economics, Research Macroprudential Policy and Treasury and Issues Investment Management and Statistics Financial Surveillance Information Technology Services Syariah Finance Payment and Settlement FinTech Specialised Market System Human Resource Credit Bureau Payment System Services Oversight Meeting, Events and Collateral Registry Protocol

Technology Risk Supervision Cybersecurity

Security

Facilities Management

As of 16 Sept 2019 the responsibility The Regulatory DEPARTMENTS System Economic, Settlement Treasury This a systems establishment Agreement, Arrangement monetary International The International and Operations/Development Monetary this Surveillance Finance, Collateral Takaful/Insurance, Banking The and prudential issuance sound stability mandate on Regulatory Regulatory is - Oversight site and and Monetary Supervision, conducted and of Registry, standards System, Macroprudential Research supervision of and policy . progressive and executing to Department financial of the Investment and oversee and and Supervision fulfilling and Financial and domestic Technology Financial Capital Supervision Supervision and functioning Banking through through Currency and Operations/Development of regulations, the them, financial conducting Currency financial AMBD’s manages Consumer Statistics, Management, financial mandates Development, Market, Policy, and Management Policy Monetary Risk the Department Department services of institutions to mandate the Supervision, system, implementation off Specialised foster efficient FinTech Issues Currency Interchangeability of - Credit and site conduct sector Payment Management, assisting International, and . through in surveillance . to , consists carries . payment Payment ensuring Financial develop support Market, Bureau, Syariah of Board and and our the the the of of functions Security, Services, Information made AMBD organisational The Corporate Corporate optimises up . Meeting, Facilities Services of Technology and Accounts its Services Events business corporate Management and and Services, Division needs resources Protocol, Finance, and as supports Human well . Administration The Cybersecurity, Procurement, as division Resource AMBD’s ensures 7 is

3 AMBD in Brief 3 AMBD in Brief AMBD EMPLOYEES AMBD 8 141 54 21 8 5 20% Male • and Consultants Experts • • • Support • • • Officers • • MiddleManagement • • • ExecutiveManagement 29% Male 8Experts 2Drivers Assistant1Office Administrative51 Assistants 1Confidential Managers78 SeniorManagers23 ExecutiveAssistantDirectors12 9Executive Directors 2Acting AssistantmanagingDirectors Directors Managing2Deputy 1Managing 80% Female and Consultantsand 39% Male Staff 71% 71% Female Director Secretary 40% Male 43% Male 61% Female 221 Excluding Experts Excluding • • • 60% Female 1Customer 29 Trainees9Manager 8 221 Assistant Officers Assistant Employees 57% Female Experts and Consultants Experts and Consultants Employees Service Officer 88% Male 12% 12% Female THE YEAR INREVIEW Source: Department of Economic Planning and Statistics (DEPS) Statistics and Planning Economic Department Source: of ECONOMICREVIEW downwards Global by oil Exports industries Gains natural Increase Brunei o positive 2019 picking The business sentimentsbusiness towards the end oftowards endthe uncertainties haveuncertainties trade barriers andbarriers trade was still wasgradually - economic economic growth y globally.Global A broad A tensions, risingtensions, the associatedthe 18 slowingdown and and activitiesand in Geopolitical weighedon economy . the year.the by 4 Q Darussalam growth in % gas up liquefied rose 4 growth in 0 . y 2019 . 2 . - the - from in oil based globalslowdown based Domestic economy faced mild recovery mild faced economy Domestic o % at - almost y of recorded y . and . a of - services Overall, a o natural faster Brunei - 6 growth in y Non gas . 6 was all 2019 % previous transport manufactured Imports sector gas and Oil capital explained Hengyi particularly to investment construction pace y mining major the its - resilientconsumer - Darussalam gas throughout 2019.throughout oil sector gas oil and sector, offset o 2.5 4.9 of was maintained itsmaintained - spending, the UnitedStates As a result of resulta As weakest y real expansion than ’ 0 formation economy increased, s in % % and . rose 1 BND and % petrochemical Q by Gross y y year slower equipment the particularly 2 - - (FDI) the imports emerging in o o , at three pace 19 2 the - - activity . expanded goods 2018 t . y y 1 he a completion , decline Domestic 098 % by The projects slower with manufacture y in subsequent . growth as 6 . - 5 The o . 2019 6 market and - million production net winding % y of compared hotel pace in in plant contraction by y uncertainties inthe uncertainties Product also caused growthcausedto - remain stagnant,remain global economy. exports machinery since Q Kingdom, uncertainty has uncertainty foreign o of private strugglewith UnitedInthe 3 while Europewhile continuedto 3 . - economies of due . y continued 9 and and of . contributed phase which quarters % down the liquefied of to (GDP) in imports, surging 7 to . health 1 direct crude in global fewer 2019 gross Brexit % 1 also and the Q . of y of of in 1 - , financial by the government’sbythe China has also beenalso has China trade uncertaintytradeas Commodities Equities further exacerbatedfurther Bonds ongoing economic greatlyaffectedby Financialmarkets withstoodturbulence in especially turbulence of episodes itsslowdownwas returns registered registered crisis Major Major reforms. the middle of the year. of the middle a decade in 2019, despite multiple multiple despite 2019, in global equity markets equity global • • • • • positive double digit double positive tensions escalated tensions assets haven moved toinvestors safe Goldas surgedprices prices contributedintoriseoil non byOPEC andcutefforts jointContinued supply wellperformed global governmentbonds policiesmonetary meant Accommodative equitymarkets drove fundamentals Recovering economic restoreconfidence negotiationstohelped U.S. Positivethe inprogress ago - - , OPEC countriesOPEC China trade China with reforms tostimulate reforms providing additional Many central bankscentral Many (notably the Unitedthe(notably had been expectedbeenhad monetary policymonetary as States and China)andStates a year ago yeara some countries some begantoease the economy.the growth as trade trending - with 9

4 The Year in Review 4 The Year in Review 10

Inflation yet to pick up… BND million *before taxes less subsidies *beforeless taxes 10,000 12,000 14,000 16,000 18,000 20,000 0.4 2,000 4,000 6,000 8,000 0 % 10,661 6,887 2016 778 factors lower to for AMBD health hotels increases maintenance household alcoholic clothing electricity, those indices to Inflation Expenditure derived index items rebased for In 1. 2. Q 0 an the . Real GDP by GDP Real 153 2 0 Brunei . inflation % for Oil and gas sector gas and Oil sectors fisheries and forestry Agriculture, gas) and (non-oil sector Industrial sector Services The (+ factors rental also Domestic pronounced global Singapore (MAS)'s Monetary has pass Global (+ of 2019 increase such revised whole with , from and with 3 fell 0 from . which . were transport 5 10,790 5 weights - 6,962 2017 remained equipment beverages 823 % , % through remained gas Survey as by footwear the Darussalam the inflation ), ) changes market inflation are the ( : of were and - continued - down recreation 0 0 0 recorded of prices . 151 . . inflationary 2019 4 dollar expected 6 Consumer 5 and largest findings % % % Authority for in education (HES) Sector* 0 attributed ) . ( . muted, . y 1 into to - the its also the 2 - in % 10,670 has Looking and 7,016 ( to 1 significant 2018 were o On . 900 other - . ( 6 0 - 0 - forecast weightings 2015 % newly The y . price 0 y and . appreciation the 5 new 9 in became - . was domestic been to ), routine % 7 in of % o the particularly % Price collected - . ), 148 (+ restaurants remain housing, y / pressures effects 2019 culture range ) Expectations to the of CPI 16 , food fuels rebased declines 0 ahead, in revised weak . other . a 2 for f Index 11,171 % series Household urnishings even given number household 2019 7,258 2018 Singapore compared 884 ) and . and of . (+ of inflation inflation ( for and - of - water, 1 2 in CPI hand, . these more 1 weak non were were . . have (CPI) 146 sub 6 1 . and and The the 0 the the the % % . its of of % ), ), - - , % -25.0 -20.0 -15.0 -10.0 10.0 15.0 -5.0 0.0 5.0 101 indicator of Brunei prices The the Currency Interchangeability Agreement Interchangeability Currency the 1 85 87 89 91 93 95 97 99 The BruneiThe % -2.0 -1.0 economic 2.0 0.0 1.0 Residential Property Price Index (RPPI) IndexPrice Property Residential RPPI

2015 Q1 2014 Q1 paid Darussalam Quarterly GDP Growth (y Growth GDP Quarterly

to Q3 2014 measures 2015

Dollar is pegged to the Singapore Dollar at at par Dollar underto Singapore the pegged is Dollar Jan-17 by Q3 measure growth households Q1 2015 Apr-17 Rate (y Inflation 2016 Food Food contribution toinflation contributionNon-food to inflation Annual inflationAnnualrate Q1 Nominal GDP Nominal . Jul-17 Q3 2015 It 2016 the risk serves Q3 and Oct-17 Q1 2016 exposure change 2017 for Q1 a Jan-18 Q3 2016 as financial residential a 2017 Apr-18 Q3 Q1 2017 macroeconomic Real GDP Real in . Jul-18 - 2018 the

Q1 Q3 2017 o - stability/soundness Oct-18 y) - properties average 2018 Q1 2018 o Q3

Jan-19 - Q3 2018 y) 2019

Q1 Apr-19 indicator

level Q1 2019 sold

2019 Jul-19 Q3 Oct-19 Q3 2019 of in MONETARY SECTORSTATISTICS 2018 2018 2019 3.69 BND billion BND b RETURNED TO RETURNED BRUNEI DARUSSALAM FROM DARUSSALAM 1 BANKNOTESISSUED mn - SINGAPORE (BND) SINGAPORE cent 2018 illion 1.30 4.32 2018 COINS MINTED BY COINS MINTED DENOMINATION (PIECES) 2.67 mn 2018 2019 2.15 5 mn - cent 272,000 2019 1.38 2019 2.71 1.81 2018 2018 2019 10 mn - 2.21 cent mn BND billion BND BND BRUNEIDARUSSALAM 1.08 2018 2018 2019 million SINGAPORE FROMSINGAPORE RETURNED FROM RETURNED REPATRIATEDTO mn 20 LOCALBANKS 2018 BANKNOTES 1.19 1.79 - 2018 cent 2.20 mn (SGD) 413,800 of BND Darussalam sheets” the 2019 BND AMBD Pertuan Bolkiah In 2018 2018 2019 600 conjunction 50 2019 public 1.12 2019 3.61 . 1 - 1 The cent pieces 700,000 polymer unveiled polymer Mu’izzaddin of is commemorative on . Brunei considered The of 22 with the note August “ the design 30 2 18 November2019 BND million 2 September 2019 Darussalam’s BND 10,000 BND BND 10,000 BND 10,000 12,000 14,000 16,000 18,000 - BND 10,000 BND BANKNOTESDETECTED September 2,133 2,133 2,000 4,000 6,000 8,000 uncut in 292019 April His Waddaulah 12 pieces 99 in - BND 1 1 piece limited MONETARYAGGREGATES 1 0 pieces 2019 COUNTERFEIT BND circulation Majesty pieces Uncut of Currency in Currency Circulation a sheets 1 notes 2019 the legal . The edition Sheets” , note 73 were 2019 were Sultan Sultan BND Narrow Money rd 2018 series tender Birthday is printed commemorative officially 1 on based and Haji “ 2019 9 September 2019 242019 October 2011 2 BND 10,000 BND Money Quasi - BND 100 BND 20 of in 5 1 1 piece . Yang Hassanal - pieces . in 1 August sold on A Brunei Uncut 2019 IN IN total Money Broad the Di 11 to - ,

4 The Year in Review 4 The Year in Review CapitalFunds Non BANKING CAPITALADEQUACY STRUCTURE Tier 1CapitalWeightedtoRisk TierAssets Assets RegulatoryCapitalWeightedtoRisk 12 BANKING LOANS/FINANCING BND billion BND billion Operators FINANCIAL SECTORFINANCIAL STATISTICS 28 continued of where Overall for compared financial Brunei Islamic Banks 2015 Takaful 12.1 6.1 . 7 0.6 - 9 83 Performing Loans/Financing toLoans/Financing Performing % . 2018 2018 2018 6 , . % was 5 the loans/financing Darussalam % , , 2016 5.4 system of especially growth to made to Conventional total 7.8% 19.3 18.9% dominate Banks BND % 2017 up 5.1 ended assets is 21 , 6.5 more of has . 9 in personal billion total portfolio 2019 . 2019 2019 2018 the a 2019 5.5 Conventional pronounced Companies Companies dual Insurance Finance Finance financing, commercial in 1.9 1.2 with 6.5% 20.1% loans/financing 2019 2018 financial 19.7% continued 5.9 , , a . The sustained in making BANKING ASSETS PROFITABILITY BANKING ASSETS QUALITY BND billion Gross Loans/FinancingGross Non 2015 the Return on Assets (before tax) (before onAssets Return Return on Equity (after tax)onEquity Return(after system 17 properties predominant to - corporate 11.2% Performing Loans/Financing toLoans/Financing Performing 2018 grow 1.5 up . 2018 2018 2018 2016 year 18 comprising 52 % at . . 3 - on % 5.7% The a sector sector 2017 - healthy of 17.5 year the household with of 12.5% continues growth total, 1.8% 2018 2019 18.3 pace Islamic 2019 2019 2019 an of increase in of sector which 2019 18.6 2019 and to 4.6% 1 . be 5 % conventional the BANKING DEPOSITS BANKING LIQUIDITY HOUSEHOLD LOANSHOUSEHOLD OF DISTRIBUTION with BND million Loans / Financing/ toDeposit LoansRatio 51.7 LiquidtoTotal AssetsAssets BND billion LiquidtoTotal DepositsAssets 61.8% Residential Residential Residential 2015 Housing Housing banking 14.2 1,392.6 1,364.0 % total 35.7% , , 2018 2018 2016 15.1 2018 assets financial industry 2018 2019 of 2017 14.9 which institutions 46.5 BND 55.2% % 37.6 22 2018 15.3 accounted . 3 2019 Personal Personal 2019 2019 1,546.1 1,687.3 Loan Loan billion . % The 2019 15.7 , , 100 200 300 400 500 600 700 800 OF OF CORPORATELOANS DISTRIBUTION BND million BND billion FINANCE FINANCE COMPANIES ASSETS FINANCE COMPANIESFINANCE DEPOSITS BND billion 0 2.26 1.64 2015 2015 2.09 1.62 Commercial Property 2016 2016 Services 2018 Transportation 2017 2017 Traders 1.66 1.99 1.77 2.09 Manufacturing 2019 2018 2018 Financial Infrastructure 1.91 2019 2019 Tourism

1.57 Agricultural Telecom & IT DISTRIBUTION OF OF DISTRIBUTION AND AND INSURANCE COMPANIES LOANS/FINANCING COMPANIESFINANCE INSURANCE INTERMEDIARIES BND billion Belait 2015 2 Family Takaful 3 LifeConventionalInsurers 2 TakafulGeneral 4 ConventionalInsurersGeneral 18Corporate General Insurance/Takaful Agents General Insurance/Takaful 223 Individual Agents 1 Individual Life1 Individual Insurance/Takaful 1 Insurance Broker LifeInsurance/Takaful 285 Individual Agents 1.66 TAKAFULOPERATORS 1.87 offsite machines offsite 24 9 branches 2016 onsite & onsite Tutong machines & 7offsite 7 onsite 3 branches 2017 16 1.56 BANK BRANCHES 2018 1.54 Agent 2019 1.52 BND million AND AND TAKAFULASSETS INSURANCE GROSS TAKAFULINSURANCE AND BND million GROSS CLAIMS TAKAFUL INSURANCE AND BND million 142.7 1,366.3 2015 318.1 2015 2015 AND AND Brunei CLAIMS/BENEFITS 174.2 1,470.3 301.2 2016 2016 2016 ATMs BYDISTRICT life 15 and The despite a annually premiums The . offsite machines offsite 121 Temburong 39 branches decline 7 and % industry benefits 1,596.7 insurance 144.9 296.1 2017 Muara 2017 2017 onsite & onsite annually general growth in 3 onsite machines 3 onsite 2 in 2019 branches ’ declined s 1,625.8 have the 126.6 294.7 2018 2018 2018 total and 70 due sectors in , contributed general the increased takaful gross to life 1,762.4 145.8 291.2 2019 2019 2019 by both sector claims sector 13 gross 1 the . 2 by by %

4 The Year in Review 4 The Year in Review Marine, Aviation Marine, TAKAFUL ASSET PORTFOLIO INSURANCE AND Cash and CashandCash Percentage INVESTMENTPORTFOLIO TAKAFULINSURANCE AND NON FORCONTRIBUTIONS GROSS PREMIUMS/ 14 Equivalents Common SharesCommon Compensation Miscellaneous Recoverablesfrom and Transit and 24.3% Reinsurers Workmen Engineering 28.2 - LIFE BUSINESS % Property Accident Personal , Liability change Energy , Motor 4.7% , ( Investments % Receivables ) Short between 4.1 % - - - 90.5 Term Investments - - 77.7 3.9 1.9 , OtherAssets , 9.0% Debentures 2018 Bonds andBonds 56.2 4.8 5.1 15.5 86.9 and , 64.7% , , 59.2% 2019 2.2% CLASSES OF BUSINESS BYCONTRIBUTIONS LIFE cyber liability and liability officers and directors indemnity, professional general liability, includes Liability OF OF BUSINESS BYCONTRIBUTIONS CLASSES NON for dominant Motor contributions total space biggest Whole 50 7 7% PREMIUMS/FAMILY - % % LIFE GROSS PREMIUMS/ business 6% 20% and 10% life of 5% segment Engineering Energy Miscellaneous Personal Accident Liability Marine, Transit Aviation and Workmen Compensation Property Motor 9 segment, life/family total 16% % 3% insurance accounts Medical Health & Others Investment-Linked Group Term Endowment Whole Life 8% 1 general % continued 3% in which 1% the for took business 27% premiums/ accounted 27 to life/family 27 % up . 50% be 1 % the the of CAPITALINDUSTRY MARKET INDUSTRYPLAYERS THE IN OF OF BUSINESS CONTRIBUTIONSBY CLASSES LIFE PLAYERS CAPITAL CIS Representative’s CMSRL CMSL Note 2015 33 : PREMIUMS/FAMILY 17% Collective : 7% : 5 Capital : 4% % 2016 3% 20 CIS20 HoldersCMSRL 153 Holders 8CMSL 1 148 MARKET MARKET Marine, Marine, Transit Aviation and Engineering Miscellaneous Personal Accident Property Energy Workmen Compensation Motor Liability Capital Recognised Facility 0% Markets Investment 2017 - Licence 159 1 % Markets - INDUSTRY Services 3% 2018 Trading Trading 155 Schemes Licence Services 2019 182 60% SCHEMES(SIZE) INVESTMENTCOLLECTIVE (AUM) ASSETS UNDER REMITTENCE LICENCES REMITTENCE CHANGING AND MONEY NEW 3.03 BND billion 2019 operate AMBD in investors number There treasury and been The BND million 6.09

2009 24.9 120.0 2019 2009 1.28 majority including 2010 39.4 118.4 2010 sukuk Islamic invested granted was money bills

2011 36.6 110.2 2011 6.48 3.83 of in 2012 42.2 120.7 2012 2018 ( an investors 35 of : ( 4.59 -

118.4 140.8 2013 65

changing 2013 five % into 3.62 the % MANAGEMENT MANAGEMENT increase ) Conventional to Temburong 2014 70.2 130.5 2014 4 in ), district and new 6.33 in Bruneiin total 6 2015 foreign 2015 60.2 121.7 2019 , 035 and

2016 52.2 103.6 from 2016 business licences 5.58 AUM 4.42

investors 2017

2017 102.5 137.8 in foreign Muara bonds district 2018 2018 102.2 168.8 5 1 total 5.82 , had 100

in 2019

to 92.9 199.4

in 2019 FOREIGN CURRENCIES FOREIGN SALE IDR OUTWARDREMITTANCE 9% personal 95 GBP BND million 6% %

THB BND million 720 721 722 723 724 725 726 727 728 729 730 5 Bangladesh 100 120 140 160 180 USD 10 10% % of 20 40 60 80 OF OF 13% 0 % 13% outward purposes 1,185,999 Others 275,586 2018 2018 14% 724 134 No. of Transactions of No. Value Transaction Value No. ofNo.transactions remittance 1,136,063 2019 2019 730 170 319,320 Others 250,000 260,000 270,000 280,000 290,000 300,000 310,000 320,000 330,000 1,110,000 1,120,000 1,130,000 1,140,000 1,150,000 1,160,000 1,170,000 1,180,000 1,190,000 26% were 30% 20 MYR 44% % for No. of transactions No. of transactions FOREIGN CURRENCIES PURCHASE INWARDREMITTANCE United States Indonesia EUR CNY 5% 6

BND million % Malaysia 8% BND million 10 4.4 4.5 4.6 4.7 4.8 4.9 5.0 5.1 5.2 5.3 5.4 5.5 Others 27 28 29 30 31 32 33 23% 8% GBP % 8% 145,084 2018 2018 8,482 Philippines 29 4.74 No. ofNo.Transactions Transaction Value No. ofNo.transactions Value OF OF 26 % 153,179 2019 32 2019 8,730 5.37 Others 42% Singapore 140,000 142,000 144,000 146,000 148,000 150,000 152,000 154,000 6% 8,350 8,400 8,450 8,500 8,550 8,600 8,650 8,700 8,750 USD 30% MYR 15 28% No. of transactions No. of transactions

4 The Year in Review 4 The Year in Review assist and AMBD INCLUSIONFINANCIAL 16 life of the population theof aged 15 in collects formulating insurance 86.3% 29.4% supply 2018 2018 credit credit financing and above have / family policy - side that data takaful can on products best half - yearly serve at 28.6% the 81.4 basis all country licensed 2019 to 2019 gauge 29.8% . % The financial 2018 the latest level instituions set of of accessibility statistics in at at a financial institution and above have an population theof aged 15 Brunei plans policies/ family and above have population theof aged 15 was to collected Darussalam deposit 40.4% 2019 accounts, as . at These insurance insurance 30 takaful account account June financing, data 2019 can . FINANCIAL SECTORFINANCIAL BLUEPRINT Companies, Insurance Companies and Takaful Operators andTakaful Companies InsuranceCompanies, System, Issuance of Guidelines on ProductGuidelines onof Transparency Issuance System, Establishment of AMBDEstablishmentof Financial Financial Stability Competitive and TechnologyCommittee Institutions Institutions and Human Human Capital FinancialInstitutions Infrastructure Monetary Monetary and Development Takaful/Insurance ProfilingEarlyWarningTooland Takaful/Insurance International Robust Robust and Integration and Disclosure for Banks, Islamic Banks, Finance Islamic Banks, Banks,Disclosure for and PILLAR IV Innovative Innovative PILLAR III Enhanced Enhanced PILLAR V PILLAR II Financial Financial PILLAR I Services Modern

PILLAR I - Roadmap forBruneiRoadmap Launching of The Centre for Islamic Islamic Bankingfor Centre The ofLaunching Full implementation Leadership in Economics and Finance (LIFE) in(LIFE) Economics FinanceLeadershipand Darussalam 2019Darussalam FinancialServices Commitmentson Digital Payment BankingSector Publication of Signingof8 Frameworkin Development ofDomestic Package of Package Issuance of Notice ofonPeer Issuance Finance and Management (CIBFM) (CIBFM) ManagementandFinance of Basel II Basel of Systemically Important Systemically Financing Platform Operators Platform Financing 2025 Banks Framework Banks PILLAR II th Programme - Diversified Financial Sector Financial Diversified CompletionStateof of FintechinofBrunei Finance Companies Finance Issuance of Notice of Issuance and Guidelinesandon 2016 Renewal ofthe Renewal Governance for Governance Dynamic and Dynamic Signingof7 ASEAN Swap Assessment Darussalam Corporate Renewal -

to PILLAR III - - Peer Designated Non Designated 2025 Development of Risk of Development Assessments andMock Assessments well as the Banking, Capital Market andCapital MarketBanking,the well as th AML/CFT Risk AML/CFT Assessments (FSBP)HIGHLIGHTS WorkingCommittee WorkingCommittee Co RoundtableonNationalStrategyDiscussion onASEAN on Human CapitalDevelopment Islamic onHuman for Approval ofAMBD InauguralFinancial Transparency and Disclosure forFinancialDisclosure and Transparency Integrationand Stability Report - Publication of Chairmanship of Chairmanship - onFinancial Islamic Islamic Bills Financial Businesses and Professions as Professionsand BusinessesFinancial Issuance of Guidelines on ProductGuidelines onof Issuance Structure Inclusion PILLAR IV Market industriesMarket - Based Supervision Framework forSupervision FrameworkBased - Banking Institutions Changers and Remittanceand Changers TechnologyManagement Finance Guidelines forGuidelinesMoney Issuance of Standardof Issuance participateinfund Businesses Financial Markets Establishmentof Conducted self Conducted Legislative and Legislative Framework for Framework Assessment of Assessment Darussalam to Darussalam assessment to assessment Services Panel enable Bruneienable Transactions passporting

Regulatory PILLAR V schemes Secured Specialised 17 -

4 The Year in Review 5 Monetary Stability 18 inflation Brunei Darussalam influence that which The 1 Darussalam price 1967 between Interchangeability Singapore Arrangement framework Darussalam’s 2010 One . 2 % link . , of over Singapore’s This is provides stability Darussalam . AMBD’s of to Brunei the on framework . the remains Dollar maintain This consists unique period with the Brunei a as objectives Darussalam Agreement long credible the monetary monetary low to at 1981 monetary the is - Dollar price standing Brunei better of and par a to inflation key under nominal stable, stability 2019 to the which MONETARY under policy policy Dollar and manage conditions contributing the arrangement . the Currency averaging has Singapore Singapore rate framework anchor, through pegged the has AMBD been its in in imported a Currency factor in around implies to Dollar, Brunei Brunei Brunei Order, allows Board direct place . since This the to either the to with is official for AMBD and stability assurance under reserves every (amendment) 2004 determining Confidence expected the movement both investment a upside skew as the closely note inflation inflation . of Combined short amended monetary the which to in to and or monetary monitors the Order, be Brunei the of . STABILITY outlook and forecasts downside global in currency coin upper instils with the policy long by 2010 Dollar developments range issued for inflation stability the half the twice risks confidence term , is framework, . 2020 requires This exchange of also of Currency to a the with . horizons seen - in year the appear 1 an The . turn, 0 forecast % AMBD important forecast . foreign in as resulting The rate this Currency to domestic facilitates and a balanced, and 0 key inflation . commitment provides 0 range to % . Monetary exchange publishes factor for back factor in Order, . prices trade Risks 2020 with rate the the for up in CHANGES TOCHANGES PRUDENTIAL systems 2025 ( the establishment service payment the Oversight AMBD FUNCTION PAYMENTSYSTEM OVERSIGHT ESTABLISHMENT THE AMBD OF FINANCIAL STABILITY be insurance a AMBD with payments be recipients how Surplus For development unlocking in meeting assets 2019 of country foreign sector Assets For stakeholders In REQUIREMENTS REGULATORYDEVELOPMENTS 2016 through threats international maintaining and AMBD new completed assets managing distributed 2019 recommendations takaful banks, current ) , appropriate - a prudential - 2025 AMBD continued Approved that to to Distribution are bank in Risk carries this , established surplus and systems providers off as and are function, promote during Brunei develop, ) AMBD currently AMBD can takaful and - resources - regulation and to part . Based in site changed in shocks financial branches their According of takaful to standards, upgrade out the 2020 standards be insurance, to by Darussalam surveillance can this participants the legal the of and continued practice financial which amended its regulate work a assets for the held . Capital AMBD’s required and Digital operators dedicated a To financial in more mandate be of . to the stability for and Takaful its Authority which Foreign to with cultivate dedicated ensure provide implemented the by . . is distributed . existing Pillar the Brunei requirement the This sector AMBD responsible . and efficient (RBC) Payment regulatory and foreign who regulation the the Financial to to . year supervision Notice, Operators which in The 1 function hold supervise our could bank flexibility on them industry . issued of ensuring Notice high did legislations work issued framework - which project Darussalam site the requirements Payment bank use a includes not Roadmap and branches starting greater surplus Sector . quality specific for of framework to examination Financial is spur with in on In of that receive a the is is the branches the the of in formulating is whom developing November Notice assets consistent . aimed Forms aimed Blueprint line flexibility payment payment can 2021 specifies financial stability banking enhancing relevant for amount . type System further ( in 2016 Sector claim only with are The . the the the . for for on to of of at in - met, of institutions Blueprint the our expected platform on For to conventional required consultations transitioning from the followed high Feedback framework ongoing intervention also Warning is the submit plans and times In Developing ASSESSMENT SECTORFINANCIAL AND RISK Order, decisions functions to implementation the the (FMSP) On PANEL SERVICESMARKETS FINANCIAL ESTABLISHMENTTHE OF raising small financing capital AMBD being submit provide enhancing financial Securities the requirement establishment the 27 regulatory industry insurance . level businesses been of November 2016 market capital ( their May capital was 2016 A distress, operation and in System up finalised also to efforts i a made of industry, . from e a for RBC notice Brunei . Financial . . facilitate system by established a individual introduced system - 2019 the . insurance ensure Markets 2025 Quantitative the These to monitors robust sector the with market, industries the frameworks data of industry framework by for with for AMBD . to FMSP 2019 , RBC financial Darussalam ) of establishment the has Meanwhile, resilience the of as provides by of AMBD the industry the gathering develop Condition in resilience the the an initiatives crisis Order, Securities . recovery AMBD checks well formulating a the been Financial companies, framework, and engaged takaful are As in takaful alternative to growth in FMSP consultation peer sector country, pursuant Impact under management preparation as part and was to supervises 2016 the facilitate introduced a issued of and on in exercise Report the of to and plans consider to are and recovery Markets . form April strategic and supervision obtained financial of the Markets of . our the balances two provide The development Survey financial peer source particularly to and insurance insurance the to AMBD insurance banking development requiring . starting 2019 licensees Securities ensure main on early in part section critical these of the Order, its appeals (P preparation preparation objectives framework and Services of . institutions . the their start 2 (QIS) and requirements Amongst regulations P) objectives This requirement carried that of financing supervisory 2020 and the companies licensees sector in resolution proposed - banks 2016 254 financing elements funds against this ups recovery Markets AMBD’s of effort the starting against meet takaful proper of whilst ( Panel 19 1 Early for was and and P ) has out the the for for 2 to of of in in in is P

6 Financial Stability 6 Financial Stability 20 Providing INVESTOR PROTECTION domestic providing diligence controls investment investors foreign approval for AMBD foreign Providing planner an undertaking clarify advice, intermediaries in As offering credit financial exercise first management As banking Inaugural sector The based investment part part investment GUIDELINES ON stress results allowing INVESTMENT INVESTMENT introduced . market was risks of on OFFERING OFFERING . market guidelines the investment from investors ADVICE of access in measured system sector safe AMBD’s is severe AMBD’s able clarity This the testing losses top dealers of place AMBD adviser of differences conducted to to market to access regulated the by the . dealers is a yet down foreign withstand capital current offer that exercise macroprudential were estimating the new advice on before financial to and exercise reasonable and have resilience to the access ensure requirement giving markets stress investment to issued a activity that regulation prior providing domestic on between banking all financial sector, REQUIREMENTS REQUIREMENTS showed market proper the obtain INVESTMENT INVESTMENT shock the to DEALERS that macroeconomic due CULTIVATING of testing for amount or as to to FOR a FINANCIAL INSTITUTIONS banking AMBD surveillance Brunei sector scenarios that Syariah consumer Syariah with provide Services standards To Promoting as comparisons customers contractual information, customers provide and and companies, AMBD Enhancing CONSUMERPROTECTION of exercise well conducted better Darussalam’s the could product market sector understanding the . introduced as concept the and banking requirements a in shocks Syariah protect to suffer to protection consistent . are consumer Brunei with end best takaful rights and The avoid risk disclosure for between on financial its . . - equipped HIGH HIGH QUALITY to practices product a consumers, concepts guidelines TRANSPARENCY the GUIDELINES ON Darussalam - and DISCLOSURES DISCLOSURES to industry smoothly that surveillance looking financial regarding on The Enhancing end product operators of PRODUCT . and products are selling knowledge allow institutions These to AND the first compliance could obligations products features, promote and with implemented comprehensive and exercise for on sector . to banks disclosure Risk malpractices AMBD AMBD . also and references potential prevent financial These and long the conventional consistent toolkit to . Perception on offering Financial preparation in . fair insurance benefits services promote - help also in term is also with This products Syariah the the to part treatment 2019 sheet sector throughout issued vulnerabilities consulted to on assessment of next Syariah assess requirement disclosure essential financial Islamic offered of products and and the ensure institution Survey end Standards companies to which 6 AMBD’s of exposure risk and Syariah to Islamic - the risks, to to a assess requirements Financial by the 12 financial - assessment STANDARDS DRAFTS FOR system services customers, information exercise end sound EXPOSURE EXPOSURE the risks of SYARIAH SYARIAH and regime should financial months s takaful fees macroprudential that is banks the rulings were drafts life are compliance on services banks’ and key from industry practices condition Products and can transparency was cycle and contain designed required . and and vulnerabilities institutions for The associated awareness to to functioning . charges, perception conducted affect provide Syariah finance insurance ensure of . forward make with and and report key the to to and the -

FinancialStability 6 6

ENSURING A TRUSTED FINANCIAL SECTOR THROUGH A ROBUST LICENSING FRAMEWORK

Amendment to licensing examination requirements for capital markets services representative

AMBD currently requires applicants for capital market services representatives’ licence to pass relevant licensing examination to ensure they have the adequate knowledge and experience to perform regulated activities safely and competently. In 2019, AMBD made the requirement more flexible for licensed representatives who are Chartered Financial Consultants (ChFCs) and Certified Financial Planners (CFPs).

Strengthening the licensing framework for money-changing and remittance businesses

AMBD made changes to licensing conditions for the money-changing and remittance businesses, particularly aiming towards enhancing licensees’ compliance and professionalism. This helps to safeguard the industry from being used as a conduit for money laundering, terrorism financing or other illicit activities.

Continued public awareness on unlicensed financial activities

The Alert List is a list of persons (companies and individuals) and websites which are neither authorised nor approved under the relevant laws and regulations administered by AMBD or whose activities raise a suspicion of illegal activity. Only financial institutions licensed by AMBD are allowed to provide financial services in Brunei Darussalam. As of 31 December 2019, 94 unauthorised persons were included in the Alert List, 13 of which were added in 2019.

Investment Money 5 Remittance 1 Money Forex Bitcoin / Lending 3 Crypto 1 3

Additions to the Alert List (based on type of activities)

21 6 Financial Stability 22 supervisory enhancing In ENHANCING SUPERVISION ENFORCEMENTAND line with the approach efforts industry for promote Minimum and particularly transactions AMBD sector enhance takaful AMBD framework developing the well consider Cyber amendment AMBD institutions framework approach AMBD All terrorism specific money AMBD methodology AMBD insurance and operators Takaful Banks Capital Money to . EFFORTS finance issuance internal financial institutionsfinancial adopt ’ as s . governance is feedbacks operators - and finance companies finance and completed Intrusion introduced consulted consulted changing introduced - its sound market intermediariesmarket in changing the focus financing for companies requirements risk to to for the control supervisory to relating which of an . changing assess the - ensure based the the process corporate technology on effective ON that and sector and and the the Notice Notice and framework and remittance businesses remittance and risks the a will a their to . proper supervision money have RBS insurance remittance RBS This profiling Incident THE . industry risk of . risk trends takaful . industry require were technology governance on drafting framework sets been management framework risk assessment risk Early . risk ADOPTION laundering of the and introduced companies received tool on Reporting management management (RBS) industry all Detection companies incidents a on assessment first risk insurance, risks the and practices financial for for across step - of online based . and since carried draft with the and the the to to as in to of enhance the out OF practices helps particularly of Requirements framework effective Process to Adequacy Amendments arrangements management expectations Guidelines Audit Governance the to ensure visits AMBD industry and technology AMBD 2019 Committee The considering technology businesses and guidelines Standard financial Hukum the the any RISK . understanding AMBD to collaboration remittance full Framework The first to that conducted . and Islamic for Supervisory material in sector, Framework implementation were by committee Syara were on on ensure implementation - - was the their Financial have technology the development, BASED Framework . banks financial - the were risk obtaining on site were size financial also ’ issued . of established takaful AMBD which banking businesses businesses Additionally, inspection at . Syariah sound outsourcing established sound of of in management issued and made Review serves least Institutions their This material the were institutions to the AMBD’s continued SUPERVISION and institutions and requirements sector the risk changes compliance practices setting issues, operations of risk is rolled baseline are financial based on of as to insurance to money Internal and AMBD for to . a the approval in 19 arrangements ensure management management the the platform out the to out outsourcing ensure Technology accordance on regulations to to in in Evaluation December - changing focus Basel . oversees on level in conduct the 2019 AMBD’s AMBD services relating Syariah Syariah discuss on Capital sector . 2018 these place - new This site risk the for on to of ’ II . s . under related seven failure implement imposed directions institutions AMBD ENFORCEMENT Supervisory Supervisory Letters the Issued penalties 69 to carried to . on respective submit a Fines and non robust two out - issued were compliance related cash Conducted financial Outreach nine transaction legislation imposed 9 69 transaction outreach to Directions supervisory Issued institutions to 3 AML/CFT . on monitoring various sessions financial reports letters offences for Penalties Imposed requirements . system, to institutions Meanwhile 7 and failure financial three were and to part financing prevent financing understand The outlined compliance implementation implement domestic (NAMLC), Combating Secretariat The COMMITTEE(NAMLC) TERRORISM OF THE FINANCING COMBATINGLAUNDERINGAND NATIONAL ANTI 2012 requirements submitting institutions implementing These effective guidance AML/CFT institutions AMBD AML/CFT • • which Asia/Pacific preparation The • • • risk Secretariat understanding Instruments reporting Registration (RCED) Outreach professions and FATF organisations Terrorism level Terrorism cooperatives Money assessments Financial . FATF of included FIU issued include - by or designated implementation risks, commensurate papers risk ongoing which to the suspicious coordinated and Group competent mitigate also towards and Recommendations the and of their towards laundering and to financing Intelligence financing the mock of AML/CFT (DNFBPs) AML/CFT the associated of Financial (CBNI) Physical SUPERVISION Royal sector in DNFBPs in Department of sector the serves Financing the National DNFBPs risks were on following coordinated 2019 order money the monitor assessment national efforts money international Money guidance Criminal the Customs transaction non risk up : Currency Action risk also and questionnaires as to Immigration programmes authorities - Unit to with - risk - within MONEY to Anti of Mutual financial and assessment understand laundering a initiatives of assessment - Laundering ensure laundering to produced completed the date, AML/CFT (INRD) mechanism (FIU), - Task AML/CFT the Money Asset and on assessment require Terrorism and the Brunei on keep each reports, AML/CFT financial development the risks Evaluation Force Excise AMBD that Bearer : requirements developing businesses to Recovery to within Laundering and at FIU sector and to to and initiatives the (APG) and the of identified countries (FATF) programmes improve Darussalam’s measures the for in Department all ensure acts coordinate, Committee Negotiable institutions as assess non standards following . terrorism terrorism country’s line National of financial financial national relevant in NAMLC by . Several - as Order, profit 2020 . 23 with and and and and and the the the the the the As to to of . ,

6 Financial Stability 7 Financial Development 24 third Brunei Islamic revealed report, Development countries top Brunei future respective market Takaful return banking Comprising banking, During ISLAMIC capital Islamic and experts effectively academicians, this (UNISSA) collaboration AMBD their institutions of centred trends platform February Muzakarah Finance In Human as spur development the 2025 Brunei financial support In DEVELOPMENT FINANCIAL collaboration poverty strategic 10 create responsibilities in closed 2019 . ), the will on Darussalam also Finance the Darussalam which objective the funds for performing shares in Finance Capital on recorded and AMBD Darussalam’s that for 2019 takaful on as , equity sectors, require growth and discuss vibrancy year, sector Brunei ASEAN can Ilmuan Islamic Islamic organised of reported AMBD professionals 14 and plan RTD Brunei and took Management FINANCE with Report 65 industry of of and balance facilitate policy Development November embarked assets Development and with % of a for Islamic Islamic the Darussalam of 32 in region, Kewangan to, hunger leaving the social maintained into stable were for at Islamic toward 22 finance of Universiti 13 Darussalam % undertook its the Brunei in efforts Islamic Financial a the The . have FinTech needs the 8 2019 October among their since and makers capital account the % roundtable human further funds finance Finance after return to room to 2019 tenth on the during total and finance Centre ICD : increased 5 (CIBFM), profit of Darussalam Industry the Islam discuss % of capital and set in Shifting its strategic Malaysia market society Islam sector Indicator various maintained - Sector . Refinitiv 2019 on capital for of scored data numerous development banking others, Islamic how developments and The tools having in position ranking to making the up (MIKI) for markets assets total Brunei more discussion . . create issues main to market . collected Sultan AMBD across activities, Blueprint MIKI in agencies year Islamic practitioners The development a Islamic 45 and . Dynamics grow initiatives Finance Islamic Islamic assets (IFDI), sessions tackling assets, amplify Through as growth of in activities platform their Darussalam, . points objectives a and serves Indonesia efforts out Meanwhile, discussions 2 one the . 2019 industries Sharif resolution organised . of 1 . (RTD) financial in % Banking average as of Finance in ( ranking finance current human of 2016 Islamic Islamic . of in issues in on and , 2018 with well their as the the the with and 131 The the the the to for for Ali 26 to of . - in a a . ,

Total Issuance (BND) instrument will structure, The collateral in liquidity 2020 Bills) made Brunei To AMBD CAPITAL million outstanding four comprised institutions liquid benchmark develop of maturities 176 this Ijarah on continues Government Economy, Darussalam, AMBD Singapore Interchangeability to principles 200,000,000.00 400,000,000.00 600,000,000.00 800,000,000.00 Brunei BND the a further Average Yield12 (%) Average Months Rental Average Months Yield 6 (%) Outstanding Total programme have . inaugural regular issuances issuances Outstanding Amount andAmountOutstandingRentalAverage Yield The by with was . 13 I acts investment Currency Darussalam, - the 0.00 management Bills AMBD for . Darussalam . 34 a in the to as of AMBD . issued of BruneiGovernmentSukukAl is develop the for Brunei tenor as the at basis the 2014 issue billion Brunei In three Q1 8 through strictly MARKET first AMBD Sukuk issuances with the the corporate 2014 , to Q3 issuance aim Overnight the of 2019 Board . on I the launch - of 2015 The of . Q1 Government months Bills Agreement agent end The instrument Darussalam a 12 Brunei necessary short 6 consistent to 2015 two and its , I Q3 Brunei for - more 2014 first April Bills the Al objective month Arrangement, are 2016 12 of Q1 support kind with and the the - sukuk - can weeks to Funding/Lending Ijarah term 2016 and Brunei 2019 Government Q3 will - expected 2006 sukuk efficient Government 2019 Ministry AMBD administration the three banks in 2017 be Q1 maturities securities preparations one with be . remains with and for Brunei 2017 . standing of Q3 Sukuk regarded This effective Government Average Yield9 (%) Average Months Rental Average Months Yield 3 (%) Government Since Programme month based 2018 Islamic this year was Q1 as the provide domestic money to and the 2018 Syariah of - Q3 primary Ijarah Darussalam, programme issued the fully Currency with be yield Al Sukuk 2019 issued, Q1 on with maturities at Bills Finance as the - and of Facilities Republic Ijarah inception 2019 launched Q3 have BND market a committed - a total an the curve . compliant Sukuk of a (AMBD the investors Currency safe Wakalah Al financial efficient total eligible , -0.50 0.50 1.50 2.50 3.50 - Brunei Brunei AMBD Board which Ijarah 334 value been . total is with as and and and and Al for to of of of in . I 6 a - Average Rental Yield (%) - the such actions industry to aim consultant On purposes the Recommendations FinTech FinTech AMBD The FINTECH securities facilitate enhancements key particularly the a of Exchange The Exchange aSecurities the of Establishment for Project member a relevant 19 development State Stock to State securities Ministry parts recommendations September engaged socialise are in engagement Ecosystem the of to exchange Project of Exchange of of hosted in Brunei stakeholders relevant FinTech being FinTech the operationalisation of ensuring exchange the to the a Finance of working the Team consultancy 2019 . considered the exchange Roadmap Darussalam the preliminary in stakeholders Project Assessment legal in process Brunei , the “ country’s that to AMBD in FinTech Brunei and whom group, Brunei and spearhead readiness Remittance Team ; have . Darussalam ecosystem firm Digital Economy and . by in Moving regulatory outcomes Darussalam and From Forum 3 FinTech continues were were Darussalam collaboration been Report AMBD to on the and supervision assess the its produced also the White forward, put . set 2019 ; ecosystem preparation establishment, to for framework, establishment of This the to project, part the up forward Project the . implement ” awareness work AMBD, Paper with with includes State a FinTech . project several of of Stock . with this the the the the for on as to of of Electronic System Wallet AMBD with framework into Regulatory testing This companies In prime safety contain with elements AMBD parameters regulatory experiment 2017 FinTech FinTech (BCMA) Board Islam conducted understanding may socialisation the 1 2019 suitable brings play FinTech all Brunei to consideration improving (BEDB) and recognises continuously . the Regulatory , the Regulatory various enable a of AMBD environment, . to role soundness socialisation into the with Sandbox consequences sessions innovation necessary innovative (MUIB), cater and Regulatory total in the of innovative qualified the FinTech the that approved the for . Sandbox . AMBD engages the Sandbox to can the Moving Brunei FinTech of more . risk safeguards FinTech Acquiring Merchant five sessions for Therefore FinTech help the Brunei guidelines of companies FinTech Sandbox and FinTech FinTech a solutions 1 qualified was Capital these other financial the ensure limited ecosystem forward, solutions failures Economic introduced with Regulatory entry a in elements solutions agencies Regulatory . companies Markets regulatory other period FinTech Guidelines place the In system or in are AMBD in to of businesses 2019 Majlis agencies Development the the fundamental have . can by of in Association to three The companies remains Sandbox Sandbox a , time AMBD will currently Sandbox . sandbox socialise FinTech help relaxed a Ugama overall AMBD These good look who new 25 and to to in a . .

7 Financial Development 8 Financial Infrastructure REQUESTSREPORT FORCREDIT CREDIT CREDIT BUREAUCREDIT HIGHLIGHTS INFRASTRUCTURE FINANCIAL DISPUTE RESOLUTIONDISPUTE 26 The Home Mortgage Home 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1,000 1,200 Home Hire Other Secured Other 5,000 200 400 600 800 Overdraft Personal Loans Personal Credit Others Loans 0 Loans 0.1% 0.8% 0.0% 0.2% Purchase 0 Mortgage 34.2% Q3 2014 FACILITIES REQUESTS BYTYPE Q1 Bureau 2015 Q1 Q3 includes 2015 Loan Credit Cards Credit Q3 Q1 has 14.0 2016 Q1 Commercial includes Vehicle % Q3 received 2016 Q3 Term Loans Term Q1 0.3 Financing Musharakah Q1 2017 % Q3 a 2017 total Q3 Q1 Q1 Consumer 2018 of Q3 2018 Mutanaqisah 10 Q3 , 037 Q1 Hire Purchase Hire Q1 2019 registered 2019 Q3 50.5% Q3 disputes SELF EVOLUTION 6 Credit The 1,100 1,600 2,100 -400 , 2018 2014 2012 579 100 600 - number INQUIRYREPORTS since reports Bureau Q3 2014 2014 Q1 of in system 2015 2019 Q3 and Introduction Dispute Launching Establishment self Q1 Online inquiry 58% grew Disputes resolved 2016 in Resolution Q3 2019 from Self of reports Q1 of of - 2017 Credit Inquiry 255 Self the Q3 Services generated reports Credit Q1 Bureau Inquiry Requests 2018 Q3 Bureau in Score Q1 2014 and by 2019 Q3 the to ENHANCING ACCESS TOACCESS FINANCE ENHANCING revealed transactions legislative business conducted With how introduce (including conducted shared be been as products transactions economies The the including aspects focused institutions conducted In financing players, recommended agencies needs building found secured affordable s applied upply Secured they implementing workshops identified the of to with and transactions that issues on of - products can c the key environment, SMEs judges, various an hain be assistance factoring that a in interest and of and Transactions SMEs innovative the the in modern be reforms workshop assessment technological the concepts . that as related finance), have This applied requires Brunei main shared the FINANCING PRODUCTS regulatory the workshop products DEVELOPING MODERN Brunei workshops to that registrars , financial . rates is . reverse Instead, successfully collaborate this challenges private of can asset Additionally, because to economy and lending in for and Darussalam as examples Order Darussalam to the a practice are be with coordination - recommendation, underpinnings analyse provisions members participants well institutions, f based consultancy asset and in the framework actoring involvement beneficial sector not (STO the 2019 meeting . products in for main implemented - . official as based developing highest drawn . gaps ), directly The unlocking . lending involving specific market TOGETHER The 2016 in (also of The challenges of . for large and in l the the ending receivers) the for the firm, and of AMBD from all potential enabled assessment assessment framework the referred workshops linked and . financing STO different systems, judiciary financial financial credit capacity industry modern secured secured existing various current AMBD AMBD , other were were have also and by to to to to at . 100,000 Total Total Total Total Total Total 1,000 2,000 3,000 4,000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 0 0 Registered Collateral SearchesMade Registrations Made Registrations 0 2016 2016 0 Search By Serial Number(Accumulative) Search By Registration Number (Accumulative) Search By ID(Accumulative) Registration - Discharge Discharge Registration 0 787 76,444 2017 21 2017 70,721 5,723 96 2,065 83,864 0.4 1.4 2.7 3.6 91.6 2018 44 % Others % Negotiable % Investment % Money % 2018 % MotorVehicles % 163 Securities 67,176 16,688 Instruments 3,892 91,801 2019 79 2019 177 67,009 24,792 27

8 Financial Infrastructure 9 Communications and Outreach 28 28 the encourage entities unlicensed credit themselves to who recruited AMBD to platform products information sessions the initiatives importance conducted ran campaigns communicated making AMBD licensed COMMUNICATIONS AND the identify OUTREACH November country, opportunity from will needs reports also . continued To businesses retire also government informed of . to and characteristics 30 several the curb delivered During from AMBD money of securities of about served CONSUMER KNOWLEDGE in AGENDA OF ENHANCING 2019 September as obtain use the the services the through investor for falling well activities to FINANCIAL DECISIONS the participants conducted of offering use to next talks to financial WE WE CONTINUED OUR lenders TO MAKE the enhance the officers licensed World as regulators give financial of provide prey, decade of in to illegal the public to availability to education remittance our financial public targeted Investor Brunei and raise a 6 . and dangers to consumer remittance decisions, Mini financial remittance - . October online to health highlight staff, to AMBD awareness the money scams Remittance enable INFORMED have audiences Darussalam Week service exposure and of of as advice knowledge also businesses 2019 well checks and dealing and which services one investments the participants 2019 remittance . protection about provided as , - prevent tailored - on Day role AMBD to . offline which newly those - with one and was and The the the on of in in telecommunications were security currency, increasing continued In of knowledge that our on graphical protect presentations emerging In collaboration their 2019 investment social the money , data features their AMBD information public particularly the media the in and changers, cybersecurity making public’s financial on and was Know with . finances of can cyber With financial the active service the decisions on be knowledge in Your money these information banknotes Royal fraud . trends educating equipped in providers planning Banknotes raising initiatives, issues remittance Brunei and in in relation on capital . . The how public . were Brunei with the Easy Police and target Drive, it market consumers companies to - public also the to is awareness Darussalam’s Force, the - hoped understand audiences shared necessary aimed delivered handling and on AMBD that and tips can the on on at

9 Communications and Outreach INTERNATIONAL and agencies financing persons may will Summit the Council, AMBD On UNDERSTANDING (MOU) OF MEMORANDUMS difficulties member 2005 Arrangement, total cooperation Haji Director Swap On ASEAN The business Protocol, Economic in enables on Darussalam and at Dr Protocol Commitment Governors During 8 AGREEMENTS th . the the ASEAN 14 Awang 14 13 allow Philippines protocol terrorism Badar Economy , assist Arrangement is November arrangement signed financial Prime November November the Swap in the the of suspected . was states AMBD a in for . . for This Manila, Meeting Community The AMBD, The Framework . Haji ASEAN financial Financial the implementation Brunei in between is signed maritime, the financing Minister’s Agreement II which an on aimed Agreement ASA marks during Mohd facing the committed services on global MoU exchange 2019 Yang 2019 Financial Republic 2019 of Finance behalf Darussalam (ASA) on was by investigation came safety Intelligence to size ASEAN Amin , . the money the temporary with , 5 on , Blueprint fight Mulia which aviation Yang be established Office the sector the April was is of Services strong renewed Counter into to of of of Ministers the net Liew renewed of Services 7 against Financial the Berhormat Dayang member th liberalise is laundering the financial signed 2019 and the in ratified Anti force Renewal USD a instrument and Unit Government bin 2025 balance commitment Philippines line legal and - (AFAS) , commitments to Terrorism Minister - RELATIONS every Money the money every Abdullah, transit Hajah of and on under by enhance . Intelligence countries with 2 the intelligence the instrument prosecution the Under Dato 8 the of 17 and two th Central of billion cross Protocol two 8 Rokiah Republic the Laundering Package the for of . th laundering brokerage November the Managing payments years Financing Seri The of terrorism protocol financial years Minister of Finance the ASEAN ASEAN ASEAN . border with Brunei made AFAS MoU Bank Setia both Unit, binti . that that The . 8 of of of th a . partners Member economic comprehensive, RCEP directions Services successfully In (RCEP) under Chair REGIONALFORUMS HOSTING AND CHAIRING Inclusion Monitoring develop of harmonisation and developing The Brunei Monitoring Development AMBD, Workshop Monitoring as readiness targets ensuring financial was until of AMBD Inclusion Co stability regulatory ASEAN, operationalisation participate until AMBD Integration Co comparison a - - Philippines 2019 chair chair whole workshop responsible 2020 M&E 2020 of Darussalam and negotiations Regional and ASEAN Negotiation , of . arrangement . Annex AMBD initiatives the ASEAN for (WC . States . of Sub inclusion 30 by and Bangko partnership for Under and framework, AMBD measurable MAS frameworks, concluded Framework and and % financial Working ASEAN 2025 are - - in across and Secretariat aimed Working Fund FINC) of average Evaluation decisions as in Working Comprehensive high are countries and Evaluation co RCEP the of Evaluation . on Sentral had reporting monitoring chair - to the Meetings include chairs for - frameworks the co ASEAN 29 to Guidance (UNCDF), inclusion quality, WC the ASEAN’s Committee - the agreement financial financial and promote in (WC regional chairs to assist for . Group as banking and - ng Capacity FINC line The negotiations 30 for are facilitation opportunity Committee . RCEP - member well - Pilipinas cooperation ABIF) (M&E) Inputs the October Framework regional WC ASEAN and for with infrastructure on objectives to Note co inclusion financial exclusion for free jointly Economic United - integration improvement as Negotiation - ABIF and FINC Building track chairmanship, on among achieve the mutually were Financial Capacity states (BSP), to on member trade 2019 ASEAN developments for RCEP from to from initiatives organised Nations to integration of on facilitate also key Developing rate and for of . monitor the Workshop the Partnership for the achieve a agreement for April process Ministerial April sought launching indicators beneficial Financial Meetings and Building Banking Financial Financial states Services the Republic effective modern, financial in ASEAN ASEAN Capital AMBD 2018 2018 29 ease data 85 . and and the the the to of in % in in a

10 International Relations 10 International Relations 30 • • • • • • • • • following In International Organisation Financial AMBD International participate of membership expand 2011 Consultative joined development setting AMBD INTERNATIONAL ORGANISATIONS IN MEMBERSHIPS IDIS), Regulation Meeting the Meeting (PSIFIs) Prudential including were Several IFSB involved standpoint designed (APP) Darussalam’s (AMRO) organised Multilateralisation AMBD Multilateralisation MaiInitiative Chiang Workshop on the Financial Task Regulation Meeting Adequacy Working Shar Working Islamic Working Takaful/ Transparency Working Protection Working Technical IFSB 2019 , Islamic Working both also in the financial is ī - hosted . also Islamic the on Council and `ah Force , the of bodies the meetings of to a The by : Finance the on Services AMBD in objectives Retakaful in and 4 Governance Effective hosted the member Group Indicators actual formalise of equip of Financial Committees Group Group Association include of actively the Banking the ASEAN+ Standard 10 of to Group : Group for 6 role Financial Group Group Effective Financial workshop the 11 March on a the system th Revised Securities international Structural 5 operation Islamic th and Core Workshop (CMIM) : CMIM Regulations transfer March as attended Meeting and G (CMIM) Core Prudential : for by and Meeting Undertaking Deposit 20 Board Meeting to 3 Meetings of Meeting participates Meeting its an 2019 . for Meeting Sector Stability , Deposit prepare Macroeconomic Services Framework Other Asia AMBD actively Principles Capital and various Capital Services of the outreach Test Principles Arrangement 2019 The Commission on was of . of Islamic Insurance IFSB Market to (IFSB), Insurance (RCG funds FSB standards and on the IFSB 11 Islamic (Takaful organisations , Run (RCASIBS) of Insurance reflect Markets and of AMBD held Adequacy the in international IFSB Board Disclosures Board Board 10 June IFSB Chiang contributes RCG . the activities . in contributed Standard Asia) for Brunei Core Financial th the for The 3 the Structural Banking rd - Supervisors Test to the the AAOIFI Segment) Revised . (IOSCO) Discipline from 2019 Systems (IFSB) Task Islamic for . Providing Working (IFSB) Research Islamic (FSB) In workshop IFSB Systems Established Principles Mai assist global and Run, Standard International International 2019 Darussalam, Asia beyond to that a which Force Indicators standard Sector meetings technical Regional Promote Initiative where to Investor and the , Finance Finance Revised (CPIFR to Capital Islamic are nature AMBD AMBD Brunei Group Office (IAIS) Party was was the the the the for for for 3 on to in rd it - - . • • • • regional In COUNTERPARTS OTHER ENGAGEMENTSWITH • (IAIS) International • • • (IOSCO) International • • • addition, and South Egmont Asia/Pacific ASEAN IAIS IOSCO Network IOSCO IOSCO Technical International Cooperation Cooperation Standing Training Annual and East FinTech Annual Finance Group Initial Meeting AMBD international Meeting Committee Organisation Group Conference Association Asian (COMCEC) Centre Islamic of Conference Network and Coin actively the on of Central Central Finance Mints Money for collaboration Offerings Organization and contributes of Economic of and Banks in Bank Meeting Market Laundering Insurance Securities ASEAN Meeting track Consultation (SEACEN) (IIFM) platforms and to (TEMAN) of meetings the Commission (APG) Supervisors the Commercial following Research : Islamic (ICO) DEVELOPMENT ORGANISATIONAL AMBD These crisis emerging understanding Internally, mandate is employees institutions working University, Management Science Regulators awarded credentials More opting There programmes Employees 7 its people continues AMBD DEVELOPING improving enhance mental assistance in AMBD increased that resources, launched The A be and . 1 % necessary human a 2019 BETTER to Human need through management, was thematic of . also for equip staff believes , than in In . health a attachments which in AMBD to programmes morale, employees’ issues total engagement capital to processes Asset to also 2019 Singapore and were Scholarship full in introduced to Resource , in take 2019 them AMBD put for 2019 conducted 30 scholarship keep its talks an certifications , and the WORK that and aims given awareness gross conducted Institute, AMBD in action which AMBD a increase to . with social loyalty virtual employees The 2019 strong represent employees . abreast Wealth and region its awareness PEOPLE ease welfare Management to Seven the the at Programme conducted . salaries the amounted between invested strength strengthening data both to provide including Employee a platform, opportunity currencies under . in the ENVIRONMENT emphasis necessary programmes and in Management of . with continue range employees Nanyang AMBD the an management 2019 . in management It AMBD of - in pursued among important the lies the house number current digitally productivity, voluntary also to to . the System data of Assistance AMBD One there the hired Temasek and tools on in Hearts pursue to to of aims development financial employees, to its also and equivalence confidentiality, developing attend . employee developments the the at Technological of cybersecurity carry should promote . (HRMS) professional platform will people seven counselling employees to It the employees of of externally had workforce Master staff is Regional Program improve - besides out various Wealth human related AMBD be hoped there short new was was and the for on an its its to of of of . . . . as emerging outlook talks global In SESSIONS HOSTING through enhance understanding country’s able total to specialised the government's internship 2019 AMBD business the investments, sustainability spurring be well human to period for concept OUR OUR STRENGTH LIES rotated saw and understand various sessions strategies targeted their as monetary trends INTERNSHIP training programme domestic discussions the of . and capital topics These within goal research, six of into tasks introduction KNOWLEDGE and businesses were IN OUR IN OUR audiences . months global better of program trends authority, . pre in on consideration contexts, opportunities realising , held on - analysis, Brunei selected which the . markets the permeate evolving The . are in Two designed functions of growing but AMBD trainees Vision 2019 PROGRAMME Darussalam also aims and the AMBD economic and will in matters PEOPLE when different increasingly which presentation organised 2035 inaugural the to to of also will economies SHARING importance functions allow AMBD digital support . not both formulating focused and by build aspects This building trainees only market several AMBD as taking in future for skills their is 31 and the the the on be of of a a

11 Ogranisational Development 11 Ogranisational Development 32 books contributed of year with the the holy organisations presentation AMBD blood donors donation the blood awareness replenish efforts, As INITIATIVESHEART AMBD OF spending part ‘Back Batu in school month Ministry . . for The 2020 also of and AMBD drive Marang to the the AMBD's event on . necessities BND of School’ The resulted wisely held students of country's and of was Ramadhan the held was project 3 donation Primary Finance , 30 619 a Corporate a positive within project success also a . Majlis in orphans . in 52 blood blood also . the preparation opened School worth Towards an and was to social as highlighted Khatam Social collection bank, allocated donation in it three held of Economy managed to to conjunction impact the school Responsibility officers as help for of Al non end well the - of budget the 15 Quran drive . provide - supplies of to government 63 of and students new The importance as attract donating the with pints . to to staff and school AMBD blood (CSR) them year, raise help and the 75 of of of a and environment As physical maintaining moving AMBD consumption papers waste Paper 2019 for green (kilograms) Recyclable waste collected by material paper, part Environment , AMBD initiative . waste collected, plans AMBD records towards of plastic Aluminium digital accounted and AMBD's collected Plastic Paper to by encouraged through . Strategic and mainly introduce in digital printing records line aluminium commitment 2 the for , 949 with newspaper from Plan, employees more placement further of documents kilograms the newspapers AMBD documents 1,650 waste than AMBD 573 726 initiatives to subscriptions of to half introduced worth in protecting Health, recycling back reduce its of instead and offices of - the such to waste Safety - paper scrap back a total bins and . the go as of In . . (1 January 2017(1January ChairmanAs Economy andFinance Ministry of (Investment),SecretaryPermanent Yang Board matters Management reviewing the appointment including on The (IAC)COMMITTEE INVESTMENT 2018June (12 BruneiDarussalam Bursa ExecutiveDeputyOfficer, Chief Yang 2018June (12 ActingDirector,Managing AMBDAssistant Yang October (5 2019 Director,Deputy AMBDManaging Yang 2018June (12 Director,Deputy AMBDManaging Yang ( Managing Yang (5October 2019 ChairmanAs Director,Managing AMBD Yang Brunei understanding stability and the maintains policy domestic The STABILITY(FMSC) COMMITTEE MONETARYAND FINANCIAL GOVERNANCE 12 June Currency IAC investment FMSC Monetary evaluation Mulia Mulia Mulia Mulia Mulia Mulia Mulia of Darussalam recommendations is as of 2018 Directors financial the responsible Director, and providing monitors Awang Mozart binHajiAwangMozart AwangMardinibin Haji Eddie bintiNoorrafidahHajahSulaiman Dayang binHajiSabtu RashidahHajahDayang binHajiAbdul AwangYusof Rahman bintiRokiahHajahHaji BadarDayang Brunei AwangHaji may of Order, Currency - - - - of (Amendment) evaluating of Present) 4 Present) Present) - external - - of be selection Present) October AMBD . Present) Present) . the and The Darussalam The AMBD directed 2004 performance the for ADVISORY advice members Currency Khairuddin economic members Board Sdn fund risks and , advising 2019 investment as to and Bhd from Order, amended Arrangement present managers review the on ) as of other Board of environment, the well binHajiAbdul Hamid Brahim of time investment the Board the 2010 any Board in proposals these IAC as FMSC related by Arrangement and to the promotes other for of the are according time of assisting global managers, are : monetary Directors, Directors Currency provides policies, matters : related by by and the the the to in in (HRC) HUMAN ( Ministry Senior Yang 2018July(14 Economy andFinance Ministry of ActingDirector, BruneiInvestmentAgency,Managing Yang ( Managing Yang October (5 2019 Director,Managing AMBD Yang (23 April(23 2018 DST Communications Resource), (Human SeniorManager Yang 2019(1January AffairsHome Ministryof Welfare),(SecuritySecretaryand Deputy Permanent Yang April(26 2016 Director,Managing AMBD Yang October (5 Director,Managing AMBD Yang April(23 2018 AsChairman EducationMinistryof Education),(HigherSecretaryPermanent Yang Directors, recommendations and terms The 1 26 January August HRC Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia and Manager, capacity of is amongst Director, 2017 conditions, 2019 Finance 2014 Dayang binAwangHajiMohammadSofian Awang bintiRokiahHajahHaji BadarDayang Awang AwangAjmanbinHaji binHajiAbdul AwangYusof Rahman bintiRokiahHajahHaji BadarDayang Dr. AwangHaji responsible - - - - Present) Present) October 4 2019) Present) RESOURCE - - - - - Brunei 31 Present) Present) Present) 4 for Yusof Shamsul others and AMBD development Zakiah October December Sdn key reward Economy Investment in bin . Bhd appointments The reviewing binti Azman Baharin 2019 Haji schemes, members 2019 Haji Abdul ) Meludin binAhmad Agency COMMITTEE binAbdul Rahman ) Nayan policies, AMBD Rahman human of to the the employment Jani HRC Board resource endorse are 33 of :

12 Governance 12 Governance 34 and opportunity external appointment Internal 21 The AUDIT (11 November 2019November (11 Observer As AMBD Management,ofRisk Head Majid Yang April(23 2018 Observer As AMBD ofHeadRiskManagement, Mahmud Yang April(23 2018 Economy andFinance Ministry of AuditInvestmentAgency,Supervisor, Brunei Ghani Yang April(23 2018 Economy andFinance Ministry of CorporateAffairs, Acting DevelopmentDirectorand Resource Human Yang April(23 2018 OfficePrime Minister’s Director, Yang April(23 2018 Economy andFinance Ministry of Acting AccountantGeneral Yang April(23 2018 MinistryHealthof PolicySecretary DeputyManagement, andPermanent Yang August2018(10 As Prime Solicitor Yang membership auditors ( Chairman 4 ) responsibilities recommendations, Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia of Minister’s General Audit the audits E the - Government National CentreNational Government COMMITTEE Dayang Hajah Rokiah bintiRokiahHajahHaji BadarDayang Dayang AwangHaji AwangHaji Dayang Awang Muhammad Yusri binDatoYusri Abdul AwangMuhammad Pengiran Pengiran for AMBD of of ------end function, the the and 10 November 2019)November 10 Present) October 4 2019) Present) 2019)November 11 Present) Office at - the Present) Attorney AC, auditors of Order, Mazriyani Hajah - of other Maslina bintiMaslina binHajiJohari Present) the external as Yusop Maswadi year review and at Zuraini AC 2010 inter to General’s 31 as bintiHaji Abdul Ghani financial binHaji Mahmud review meet - , December and related auditors, stipulated include binHajiMohsin (AC) binti Pengiran Pengiran and recommend Chambers, with Haji , statements services, oversight discuss 2019 the Sharbawi under Haji the HajiAbdul scope are findings external provide Section on of . : The the the of Report Compounding in Internal of to maintain governance, evaluation bringing In improve and Internal Internal and Storage scope Management through First line of AMBD establishing internalestablishing doing the 2019 Identity consulting Operational audit), AC and controls Audit Audit of the Audit . its including so, a and Data, and independence, Access Cash risk performance it systematic, defence Front conducted provides administratively assists of activities management improvement Risk Transaction Management audits Desks Offences, in Management’s independent, Second line line of Second accomplishing a Management disciplined of Support, designed on range Internal Functions Oversight defence AMBD’s Risk Report and Third to of Suspicious . of the control the Audit System audits objective to tasks Party Managing Tabletop approach Processes effectiveness its add reports processes and across Internal Audit Independent objectives t Backups Outsourcing, hird line of Transaction defence value assurance activities Exercises Director (limited directly to AMBD . and and the To by of . frameworks development processes, management Directors The (RMC) RISK (29 February 2016February(29 Observer As Audit,ofInternalAMBD Head Joharie Yang ( Economy andFinance Ministry of AuditInvestmentAgency,Supervisor, Brunei Ghani Yang April(25 2018 HealthMinistryof Secretary,Deputy Permanent Yang February(29 Director,Managing AMBD Yang April(25 2018 Economy andFinance Ministry of CorporateAffairs, Acting DevelopmentDirectorand Resource Human October (5 2019 Director,Managing AMBD Yang 2019 March(8 ChairmanAs EducationMinistryof Education),(HigherSecretaryPermanent Yang 25 April25 2018 RMC Mulia Mulia Mulia Mulia Mulia Mulia MANAGEMENT is and on . Pengiran AwangHaji binHajiAbdul AwangYusof Rahman bintiRokiahHajahHaji BadarDayang Dr. AwangHaji Siti bintiNurAfiqahHjDato ColPaduka(B) The 2016 responsible - - – framework - procedures) 31 December 2019) December 31 Present) of 4October 2019) AMBD’s Present) - members Present) - - Present) 4October 2019) Haji Johari binHajiJohari the Maswadi in overall of (principles, Azman overall and reporting the provide binHajiMohsin RMC binAhmad risk Pengiran COMMITTEE risk are policies, to oversight tolerance : the management HajiAbdul Board systems, ; of risk the of appropriate arrangements business AMBD, Committee, The Business and and reasonable decision uncertainty are functions assessment Additionally, procedures assessment AMBD assessments operations, In Operational Risk • • • • • under RMC remedial ensuring Communications Communications Crisis Crisis AMBD financial objectives to Management approved the Business for - has integrate making . Management Management action Continuity Resilience Crisis The the assurance which were continuity cycle and in an risk assets focusing and continuous an AMBD year objectives whilst within AMBD Management and is overarching to Operational processes to was is taken Continuity fit risk . 2019 further enable Response Response Policy comprised endorsed protecting that for on conducted AMBD carried Plan Policy and information, . when of holistic and Among physical AMBD purpose, . to examine better ORM ORM Project view Risk to out Policy they identify the of Management its emergency the will ensure assessment - senior assessments and with informed, personnel, following assessments of Management two are : the and to objectives achieve all digital specific any not management effectiveness better thematic that that organisational . In deficiencies documents risk its security reputation of 2019 in they planning business effective Steering of manage mission provide - based, (ORM) AMBD AMBD these , 35 risk the are of in in .

12 Governance 13 Financial Statements 36 Notes to the Consolidated Financial Statements Financial the Consolidated to Notes Flows Cash of Statements Equity in Changes of Statements Statements Position Financial of Statements Report Auditor’s Independent Board the of Report CONSOLIDATEDFINANCIAL STATEMENTS of Profit or Loss and Other Comprehensive Income Comprehensive Other and Profit Loss of or 14 13 11 10 8 5 1 AMBD Market Distributable Distributable Add Total Other Profit Financial to Syariah liquidity Al of Without d) c) b) a) Under the Autoriti Principal Monetari The for REPORT - the direct Munawwarah Autoriti : the to to Members to standards to Loss for comprehensive comprehensive Government Section reserve foster achieve assist valuation ensure principles Monetari prejudice the management financial the Brunei Activities Statements for Monetari relevant year in the and ; to earnings OF fund 4 of and the the of : Darussalam Sdn reserve year . the develop Brunei AMSB to the to establishment maintain stability THE year Bhd activities the Brunei income Board the (non Highlights income Order, activities fund is above Darussalam (“the extent ended a - controlled BOARD distributable) sound of Darussalam hereby (the domestic the of for subsidiary”) - the mentioned that and AMSB “Authority”) principal and 31 the and financial submit it (“the by other December functioning price year . considers progressive Order, the objects Authority”) (“AMSB”) principal their stability investment Authority system, and 2010 appropriate report its of of financial 2019 ; subsidiary objects, is (“the efficient the in as was a activities particular and special Authority it Order”) has established services . the the payment (the existing purpose Authority audited . through by are “Group”) sector ; formulating systems on rights vehicle consolidated . 1 shall the January for that and issuance support (“SPV”), the give financial to year The The Group 2011 oversee financial the 123,720 123,720 123,718 which the B$’000 of ended 25,707 98,013 67,309 56,409 pursuant Authority regulation Sukuk general them 2 facilitate 31 statements December under ; economic to the and and Section the The The Authority current a Authority’s of prudential variety 2019 123,720 123,720 123,720 policies Autoriti B$’000 3 25,707 98,013 67,309 56,411 ability ( 1 1 ) . of of -

13 Financial Statements 13 Financial Statements 2 ( Deputy Yang ( Minister Yang ( Minister Yang ( As Minister Yang As Senior Sultan Haji Duli The Members (Retired Former Yang ( Member Yang ( Minister Yang ( Managing Yang ( Solicitor Yang ( Permanent Yang ( Permanent Yang for REPORT 30 1 1 5 10 1 21 1 30 30 st st th st st Deputy Chairman th st th th th January January January October the January members Al Yang August January January January August Mulia Mulia Berhormat Mulia Mulia Mulia Mulia Mulia Berhormat Berhormat Berhormat - Haji Minister Muhtadee Managing State on General at at of of financial of Teramat of Director, Chairman the the Hassanal Education Home Secretary Secretary 4 Brunei Awang Dato Dayang Dayang Dr Dr Dato 2017 2017 2020 2020 2019 2018 th 2019 2018 2018 2018 Mufti the . OF of Dayang October Prime Prime Haji at Dato Dato Dato Pehin at the Seri Seri – – – Board – Affairs – the Billah – Director, – Islamic – – – Mulia 31 31 Present) Yusof Attorney at THE Azman Present) Autoriti Present) year Hajah Hajah Present) Present) Present) Present) Present) Bolkiah Board (Higher (Economy) Minister Minister st st Setia Setia State Prime Seri Seri Seri Orang Hajah December December 2019 ibni Paduka bin ended Religious Rokiah Zuraini Setia Setia Setia Dr Haji BOARD bin are Autoriti Mufti Monetari ) Minister Kebawah Mu General Haji Education) May . ’ ’ Kaya s s Haji Ahmad as Awang Office Office ’ Dr Haji Awang at izzaddin ’ Seri s Abd binti follows binti 2019 2019 Fa 31 . Ministry Japar Office Seri Awang Monetari Council ’ Awang ’ ’ s s ezah Pengiran Brunei December Duli and Rahman Chambers, Office Haji Metussin Haji ) ) Haji Kerna (continued) at bin : Waddaulah - binti Minister Yang Haji Ministry Badar Sharbawi of (MUIB) Abdul Hamzah Darussalam Haji Brunei Dato Finance Muda Mohd Haji Maha bin Mat Prime Mokti of Seri and 2019 of Ahmad Darussalam Haji bin Mahkota Dain Finance Amin Education and Mulia Setia Syariah Minister Haji bin Baki @ Economy Ariffin Liew Haji Paduka Sulaiman (Dr Maidin and Pengiran Financial ’ . s ) bin Mohd Haji Office Economy Abdullah Seri Awang Daud Muda Supervisory Baginda II Abu Bakar Board bin (SFSB) Haji Apong ( Yang ( As Head Yang ( Head Yang ( Director Yang ( Deputy Yang ( Acting Yang ( and Deputy Yang ( As Solicitor Yang The Audit for REPORT ( As Head Yang ( Yang ( Acting Yang ( Yang 23 1 1 1 10 23 23 23 23 23 11 1 st st st st Observer Chairman Observer rd rd rd rd rd th rd th January January January January the members Infocommunications November August April April April April April April Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia Mulia of of of Committee Accountant Accountant Director Permanent Risk Risk Business E General financial - 2019 2018 2018 2018 2018 2018 Government Pengiran Awang Pengiran Awang Awang Dayang Dayang Dayang Awang Dayang Haji Dayang 2020 2020 2020 2020 2018 Management, Management, OF of - - - – – – 2019 Hairul General, - 31 31 Present) at the – – – - 10 11 4 and Present) th General, General, Present) Present) Present) Present) st st Muhammad Haji Haji Haji Attorney THE Secretary year Hajah Hajah Rosminah Mazriyani Hajah th th Audit October December December Maslina Haji – Operations November November Mohd Present) National Yusop Maswadi Asrul Department Johari ended Rokiah Chairani Zuraini Committee BOARD AMBD AMBD Ministry Ministry General’s Adrain Daud binti 2019 ( binti Infocommunications bin binti 2019 2019 Yusri bin Center bin 2019 2019 Compliance, binti binti Haji 31 ) Pengiran binti Haji bin Haji Pengiran of of bin ) ) Haji bin of ) ) December are Chambers, Mahmud Haji Haji Finance Finance Haji Abdul (EGNC), Awang (continued) Haji Pehin Economic Dato Mohsin as Badar Sharbawi Abd Haji Sulaiman follows Haji Ghani Orang Brunei Abdul and and Besar Ministry Karim Mahmud Prime Abdul Planning , 2019 Economy Economy : Cybersecurity, Majid Kaya Investment Minister’s Ghani of Setia Transport and Pahlawan Statistics, Agency Office Strategy and Infocommunications Ministry Dato and Seri Corporate), of Setia Finance Dr . Ministry Haji and Ahmad Economy of Transport 3

13 Financial Statements 13 Financial Statements 4 For Group Group The for REPORT DeputyChairman binAwangAbuHajiBakar Seri Yang and the Audit Kerna ’ ’ Berhormat s s on internal external financial Committee behalf Dato Seri OF accounting auditors Pehin of THE year the Setia has Orang Kaya Orang Board ended held to (Dr.) Haji (Dr.) BOARD Apong control discuss several 31 system the December meetings (continued) scope . in of 2019 2019 their . In work, performing the results its functions, of their Managing DirectorManaging bintiHaji Badar Yang examination the Mulia Audit Dayang Hajah RokiahHajahDayang Committee and evaluation met with of the the Basis the December Standards Companies drawn In information, consolidated and December subsidiary We Opinion (Established AUTORITI INDEPENDENT as INDEPENDENT form Our included The Information expressed The Other evidence other requirements Standards of those We our our at year have conducted financial opinion statements members of for standards ethical 31 Matter up opinion, report assurance ended in audited we Opinion December in an (“IFRS”) (“the Board 2019 2019 MONETARI pages Act, in on accordance as have statements Other unmodified responsibilities that . financial Brunei are set on We our the of Group”) AUDITOR’S and and are the Cap of the 1 obtained conclusion are so that cash out responsible consolidated audit to than are Accountants’ further the of accompanying . consolidated as Darussalam) relevant 4 39 on date statements, the 2019 BRUNEI . flows independent statements to with which AUDITOR’S of the opinion in pages, (the financial give is the described . accordance REPORT in Consolidated the thereon sufficient of to comprise Authority “Act”), accordance for a DARUSSALAM the financial 8 provisions on our Code true financial to of including performance, the consolidated Group those . 56 audit TO in of profit and the and of . the other with the the for THE statements Ethics statements statements of and appropriate fair Currency REPORT Financial with of Auditor’s or the statements Group International the a MEMBERS the information loss view the AND summary year these for changes financial financial Autoriti and Authority of Professional and does Order, ended Responsibilities Statements ITS on of requirements the to other of Autoriti 13 OF SUBSIDIARY the provide . in not Monetari statements of statements Standards financial financial The 31 March 2004 equity for comprehensive significant Authority cover December other the Monetari Accountants and a (the 2019 and basis position position Brunei the year and for on in Auditor’s of information cash “CO”) . other in Brunei the Auditing accounting for the the ended 2018 Brunei Darussalam accordance Audit of of our flows income, IESBA Group information (IESBA and the the Darussalam, were 31 opinion Report Darussalam (“ISAs”) of of Group Group International comprises December Code the and audited policies the Code) statements Order, with . Thereon Financial Group . . the and and and We Our together and the by (“the and 2010 Authority we 2019 the the the believe responsibilities and another we of Financial International do Statements other Authority Authority Authority”) Members’ changes (the have and the not with that Authority “Order”), are notes auditor express explanatory fulfilled the Reporting the in properly as as section Report and ethical equity to under Ethics at at audit who 5 any our the the for 31 31 its

13 Financial Statements 13 Financial Statements 6 Our Auditor The alternative basis continue In to enable accordance The Responsibilities required on financial information In as INDEPENDENT • • • throughout As the error accordance opinion free fraud preparing part connection at the related Evaluate Group appropriate Obtain omissions, resulting sufficient fraud Identify economic members members objectives from of and 31 the work . of ’ accounting or s statements to Reasonable as or ’ s December are Responsibilities material an disclosures but an preparation error report internal and the with with a and, error, the from we the and ’ audit decisions considered going misrepresentations, are understanding responsibilities to are with audit in . assess have appropriateness ISAs of consolidated the in do appropriate fraud responsible that the design to misstatement, in control unless Members doing or concern, . so our Orders, obtain will assurance We performed, accordance made circumstances, fact . our of 2019 the of is AUDITOR’S material also always audit the and higher users so, . . the knowledge for We risks reasonable by Act : disclosing, of consolidated also consider for to for members perform financial the have the taken of is internal detect of than provide and the we of with or the whether if, include Audit members a the material nothing the accounting individually conclude preparation high but Consolidated on IFRS, for obtained ISAs, whether audit statements, a assurance consolidated either override as control the of material a one overseeing not financial due level applicable, REPORT basis and we the . misstatement to basis procedures resulting for intend that exercise report to the in Consolidated for policies or of relevant of for of about the misstatement of the fraud there in the statements internal other assurance, such consolidated Financial these our the to financial the purpose in audit matters from members professional liquidate whether this or used Group responsive is internal opinion (continued) information to aggregate, of consolidated a control error, or regard error, the material the Statements and related Financial otherwise that ’ of statements, but s when . audit the financial the financial control are consolidated and expressing The . as . the are is to judgement consolidated Group they fraud responsible is it to misstatement not to risk in those free reasonableness exists financial materially Statements going appears as order issue reporting statements could a of may our from or the guarantee an . risks, not Misstatements to concern financial an and to involve responsibility reasonably members opinion statements material to cease for financial detecting inconsistent auditor design and process of be maintain assessing that this materially operations, of obtain and collusion, that statements, on misstatement, ’ give s audit accounting determine statements . other . be using a report the an professional can material is audit a with expected the procedures true effectiveness audit information, misstated to forgery, arise the or Group that the evidence whether read and is has going as estimates from conducted misstatement consolidated necessary whether includes to a ’ fair no s intentional skepticism the whole . influence ability If, that fraud concern realistic view due we that of based other due and our the are are are to to or to in in is the Authority In Report audit significant We • • • as INDEPENDENT Date Brunei Public HAJI Certified DELOITTE our at direction, within Obtain a disclosures, Evaluate Group audit financial exists, significant audit Conclude information communicate : . manner ZULFARIQ 31 Accountant opinion, Darussalam on Public evidence evidence have December and we the sufficient & audit Other statements the supervision on TOUCHE that are doubt the Group been the and Accountants and the overall findings, ZARA Legal achieves with required Authority obtained accounting obtained, whether explanations appropriate appropriateness on properly to the 2019 BIN or, and the presentation, AUDITOR’S and express if fair if members to up Group’s to HAJI any, the Regulatory such performance kept whether presentation draw and cease to consolidated audit including that an ZAINUDDIN the disclosures in other ability attention to regarding, of opinion accordance date we evidence structure a continue the Requirements records required material of of . any to members’ REPORT the our are financial on continue in regarding significant among and as Group inadequate, required with auditor’s our the . uncertainty a content going consolidated auditor’s use the statements as other audit the (continued) of provisions a by deficiencies report concern going . the to the of matters, financial We exists report modify the going . Orders remain However, represent concern financial . consolidated of related the information to in concern our the and solely internal the planned . Orders opinion If future the statements the to we related responsible basis underlying events Act conclude control events financial of and scope . Our to of the disclosures the be . accounting or conclusions We entities or and that kept that Act for transactions conditions statements, conditions are timing . we our a by We or material in responsible identify audit the and, business have the are of Group that may the and including based based opinion consolidated obtained uncertainty during audit cause may events activities and for on on . 7 cast and our the the the the the the all in

13 Financial Statements 13 Financial Statements 8 as STATEMENTS

Cashandequivalents cash Deposits withDeposits financial institutions

ASSETS

Investmentsecurities Derivativefinancial assets Inventories AssetsheldMonetaryInternational with Fund (IMF) Otherassets Investment in Gold Propertyandnet equipment,

TOTAL TOTAL

LIABILITIES ANDEQUITY LIABILITIES Liabilities Currencyincirculation Deposits andDepositsbalances banksoflocal and

Deposit balanceDeposit ofinternation Derivativefinancial liabilities Payablestotheof Brunei Government Darussalam LiabilitiesIMFwith Otherliabilities Provisions Sukukissuance Totalliabilities at

financialinstitutions

31

ASSETS

December

AMSB The notes set outonpage set notes The

OF

2019

FINANCIAL

al financialal institutions

other 14 to14 form 56

POSITION

local

part of these consolidatedstatements.partfinancialofthese

Note

10

11 13

14

15 16 17

4

5 6

7 8 1 9

6

7

5,606,780

4,357,754

1,642,141

2,195,245

3,010,908

1,228,121

299,773

120,411

106,994

486,090

297,404

106,329 380,721

B$’000

10,403

15,979

32,444

23,852

4,417

2,900

2019

The Group The

402

-

4,577,822

1,540,706

1,882,613

3,452,514

1,643,233

1,248,786

Restated

120,411

248,631

490,999

254,544

103,557 3

B$’000

12,062

16,932

26,006

23,222

88,408

19,226

2,802

8,149

2018

49

-

5,606,780

1,642,141

2,315,245

4,357,752

3,010,908

1,228,121

106,994

486,090

297,404

106,329 380,721 300,182

B$’000

10,403

15,9

32,444

23,852

The The

4,417

2,900

2019

402

79

Authority

-

-

4,577,822

1,88

1,248,786 1,660,706

3,452,514

1,643,233

Restated

248,631

490,999

254,544

103,557 388,408

B$’000

19,226

12,062

16,932

26,006

23,222

2,613

2,802

8,560

2018

49

-

-

Yang ...... For as STATEMENTS Deputy Chairman Deputy Hajibin Bakar Abu Awang Seri

Equity Capital Reserve fundReserve Marketvaluation reserve Retainedearning Totalequity TOTAL LIABILITIES LIABILITIES ANDTOTAL EQU at and Kerna Berhormat 31

on

December Dato Seri behalf

The notes set outonpage set notes The Pehin

s of

Setia the OF Orang Kaya Orang 2019 Board

(Dr.) Haji (Dr.) Apong FINANCIAL

ITY

14 to14 56 POSITION

Note

18 18 18 form part of these consolidatedstatements.partfinancialofthese form

5,606,780

1,249,026

1,000,000

131,10 117,922

B$’000 (continued)

2019

The Group The

(2)

6

4,577,822

1,125,308

1,000,000

Restated

105,399

B$’000

19,909 Managing DirectorManaging bintiHaji Badar Yang

2018 ......

- Mulia

Dayang Hajah RokiahHajahDayang

5,606,780

1,249,028

1,000,

131,106 117,922

B$’000

The Authority The

2019

000

-

4,577,822

1,125,308

1,000,000

Restated

105,399

B$’000

19,909

2018

- 9

13 Financial Statements 13 Financial Statements 10 For the year 2019 ended December 31 INCOME STATEMENTS OTHERLOSSAND PROFITOR COMPREHENSIVEOF

Interest

Net gain / (loss) oninvestmentNet securitiesgain measured (loss) /

Netgain from

Netgain

INCOME

Dividendincome

Operatingincome

T

EXPENSES

Staffcosts Otheroperating expenses Sukuk Fee and commission expense andFee commission

T

Net profit for the year for the profit Net

OTHER COMPREHENSIVE INCOME COMPREHENSIVE OTHER

Netgain ongoldrevaluation

T

Total comprehensive incomeforyear the Total / (loss) comprehensive

OTAL INCOME OTAL

OTAL EXPENSES OTAL

OTAL OTHER OTAL

at fair value through profit or loss (FVTPL)atfair loss valueor profit through

measuredatother fairthrough value comprehensive(FVOCI) income

(

atFVOCI

LOSS

coupon

income

)

/

(loss) (loss)

The notes set out on page outon set notes The

derecognition of investmentderecognition securities of

cost

COMPREHENSIVE

oninvestment securities measured

INCOME

14

/ to 56 form part of these consolidatedstatements.partfinancialofthese form

Note

19

20

21

2

2 2

21

9

2

3 4

(38,239)

123,718

B$’000

(16,709) (16,

94,648

67,309

56,409

(3,0 (2,291)

45,723

24,699

42,860

14,474

24,449

2019

5,810

3,942

The Group The

239

00

)

)

Restated

B$’000

(33,316)

(27,332)

(15,647) (14,859)

35,328

(2,567)

40,179

2018

(2,399)

(5,193)

2,012

4,181

9,668

8,632

2,626

(555)

(411)

(38,237)

B$’000

(16,709) (16,

123,720

(3,0

94,648

56,411

67,309

2019

(2,291)

The Authority The

45,723

24,699

24,449

42,860

14,474

5,810

3,942

23

00

7

)

)

Restated

(33,316)

B$’000

(27,332)

(15,647) (14,859)

(2,567)

35,328

(2,399)

(5,193)

40,179

2018

2,012

(555)

9,668

2,626

4,181

8,632

(411)

STATEMENTS OF CHANGES IN EQUITY For the year ended 31 December 2019 The Group

Market

Distributable Retained Reserve valuation Share capital earnings earnings** fund reserve Total B$’000 B$’000 B$’000 B$’000 B$’000 B$’000

Balance as at 1 January 2018 1,000,000 - - 98,303 44,118 1,142,421 Comprehensive income / (loss): Net profit for the year - 2,012 - - - 2,012 Other comprehensive loss - (2,567) - - - (2,567) Transfers during the year : Fair value movement of gold at FVOCI (Note 9) - (2,626) - - 2,626 - Fair value movement of investment securities at FVTPL (Note 20) - 26,835 - - (26,835) - Transfer to reserve fund - (7,096) - 7,096 - Transfer to the Darussalam* - (16,558) - - - (16,558) Balance as at 31 December 2018 1,000,000 - - 105,399 19,909 1,125,308 Balance as at 1 January 2019 1,000,000 - - 105,399 19,909 1,125,308 Comprehensive income / (loss): Net profit (loss) for the year - 56,411 (2) - - 56,409 Other comprehensive income - 67,309 - - - 67,309 Transfers during the year: Fair value movement of gold at FVOCI (Note 9) - (42,860) - - 42,860 - Fair value movement of investment securities at FVOCI (Note 21) - (24,449) - - 24,449 - Fair value movement of investment securities at FVTPL (Note 20) - (30,704) - - 30,704 - Transfer to reserve fund - (25,707) - 25,707 - - Transfer to the Government of Brunei Darussalam* ------Balance as at 31 December 2019 1,000,000 - (2) 131,106 117,922 1,249,026

* Transfer to the Government of Brunei Darussalam in accordance to Section 9 of the Order. ** Retained earnings of AMSB. 11 The notes set out on page 14 to 56 form part of these consolidated financial statements.

13 Financial Statements 13 Financial Statements 12

STATEMENTS OF CHANGES IN EQUITY (continued) For the year ended 31 December 2019

The Authority Market Distributable valuation Share capital earnings Reserve fund reserve Total B$’000 B$’000 B$’000 B$’000 B$’000 Balance as at 1 January 2018 1,000,000 - 98,303 44,118 1,142,421 Comprehensive income / (loss): Net profit for the year - 2,012 - - 2,012 Other comprehensive loss - (2,567) - - (2,567) Transfers during the year : Fair value movement of gold at FVOCI (Note 9) - (2,626) - 2,626 - Fair value movement of investment securities at FVTPL (Note 20) - 26,835 - (26,835) - Transfer to reserve fund - (7,096) 7,096 - Transfer to the Government of Brunei Darussalam* - (16,558) - - (16,558) Balance as at 31 December 2018 1,000,000 - 105,399 19,909 1,125,308 Balance as at 1 January 2019 1,000,000 - 105,399 19,909 1,125,308 Comprehensive income: Net profit for the year - 56,411 - - 56,411 Other comprehensive income - 67,309 - - 67,309 Transfers during the year : Fair value movement of gold at FVOCI (Note 9) - (42,860) - 42,860 - Fair value movement of investment securities at FVOCI (Note 21) - (24,449) - 24,449 - Fair value movement of investment securities at FVTPL (Note 20) - (30,704) - 30,704 - Transfer to reserve fund - (25,707) 25,707 - - Transfer to the Government of Brunei Darussalam* - - - - - Balance as at 31 December 2019 1,000,000 - 131,106 117,922 1,249,028

* Transfer to the Government of Brunei Darussalam in accordance to Section 9 of the Order.

The notes set out on page 14 to 56 form part of these consolidated financial statements.

For STATEMENTS The Group’s cash and cash equivalents include restricted cash balances (Note 4). (Note balancesinclude cash equivalents restricted and cash Group’s cash The

Cash flows fromfinancing Cashflows activities:

Net increase Net Cashandatequivalentsbeginning cash yearofthe

Cash

Cash flows fromoperating Cashflows activities Netprofitthe yearfor Adjustments for: Adjustments

Changesandin operating liabilities assets (Increase)/decrease in (Increase)/decrease operating assets: Deposits withDeposits financial institutions

Investmentsecurities Derivativefinancial assets Inventories Otherassets (Decrease)/increase in operating (Decrease)/increase liabilities: Decrease in currencyDecrease incirculation Deposits andDepositsbalances banksoflocal and local other

Deposit balanceDeposit ofinternationalinstitutions Derivativefinancial liabilities Payablestotheof Brunei Government Darussalam Otherliabilities Provisions Net cash from cash(usedin)Net from operating activities

Cash flows frominvesting Cashflows activities Additionstopropertyequipment and

Sukukissuance Sukukcouponcost Net cash flows fromfinancing cashNet flows activities

financialinstitutions

Depreciationequipment onpropertyand Unrealised (gain) / loss oncurrencyUnrealised loss and(gain)/ market Sukukcouponcost the

and year

cash equivalents at the end of the end of the year cash equivalents at

(decrease) in(decrease) cashcash equivalents & ended The notes set outonpage set notes The

OF

31

December CASH

FLOWS

:

2019 14 to14 56

form part of these consolidatedstatements.partfinancialofthese form

1,3

3,010,908

1,367,675

1,643,233

291,624

(20,666)

(16,326)

141,637

291,786

654,539

(26,866)

80,376

(1,615)

(9,701)

(3,000) (3,000)

B$’000

56,409

35,806

3,

1,659

The Group The

3,000

2019

263

954

353

630

(5)

-

1,643,233

(

(755,506)

Restated

2,398,739

870,739

(229,000)

(859,657)

220,450

(14,262)

(16,300)

B$’000

18,032

23,406

(4,356)

120,000

119,589

2,951

2,894 1,574

2,012

2018

(606)

(175)

(411)

411

506

(75)

506

)

1,3

1,367,675

3,010,908

1,643,233

(26,866)

The Authority The

B$’000

291,622

141,637

291,786

654,539

(20,666)

(16,326)

35,808

80

(3,000) (3,000)

(9,701)

56,411

(1,615)

3,

3,000

2019

1,659

,

263

376

630

954

353

(5)

-

1,643,233

(7

(755,506)

Restated

2,398,739

(229,000)

(739,657)

(14,262)

(16,300)

50

B$’000

220,450

18,032

23,406

(4,356)

2,012

2,951

2018 13

2,894 1,574

,

(606)

(175)

(411) (411)

739

(75)

506

506

411

-

)

13 Financial Statements 13 Financial Statements 14 The Drive, The of Without d) c) b) a) Under Darussalam Autoriti 1 The statements These For NOTES except The 2 Darussalam, The IFRS “CO”), Brunei The 2 2 below The 2 who current variety Authority’s Al . . . . . 1 1 1 - Domicile Summary the . . Munawwarah . 2 1 consolidated Government consolidated Basis address to to standards to to consolidated . . principal consolidated the Interpretations are Functional Statement . Bandar Government notes and Section These as Darussalam foster assist achieve of ensure ability Monetari key prejudice year otherwise Syariah of . the liquidity TO and and and officers form of in preparation of and policies Seri accounting ; to 4 International and the ended the the significant of was of currency IFRS activities of THE direct financial financial Sdn Brunei develop financial Begawan, an principles financial to the compliance to establishment Order, stability maintain Group’s Brunei Committee stated of management established the integral have issued the Bhd Order, the 31 the CONSOLIDATED Darussalam above policies extent . a statements statements 2010 Darussalam been Authority statements The December statements . accounting relevant (“the of Financial sound BB registered by domestic AMSB part the 3910 - the Brunei (“IFRIC”) the mentioned (the consistently on that principal and subsidiary”) of applied activities and financial International , is 1 . activities Negara (“the and “Order”), it Reporting January of were controlled functioning price Dollar comply is office considers progressive of policies applicable the 2019 the should Authority”) the in objects principal authorised stability and Group system, Brunei applied sole is is the 2011 of the Group (“AMSB”) with also Level Standards Accounting AMSB be by other appropriate shareholder preparation of of Companies to are financial pursuant FINANCIAL ; Darussalam the read the the objects, to efficient in the 14 entities acts have for . presented both investment functional particular AMSB , Orders Authority Authority in Ministry is issue as (“IFRS”) been conjunction services a Standards years the . to a payment reporting of of Act, has special central . Section by Act Authority the these prepared in of currency by as presented, including the are Cap $ activities and Brunei 2 Authority sector Finance it . formulating : 00 STATEMENTS bank Board systems . purpose Board 3 has under consolidated with 39 the ( paid 1 shall ) . Dollars, of (the in existing of of any CO the of through and unless . (“IASB”) the IFRS up accordance the Brunei and Directors support “Act”), relevant vehicle issued accompanying Group capital Economy . financial Order rounded to rights otherwise financial . Darussalam, the oversee the by the . . (“SPV”), which on interpretations issuance that with the Currency regulation general Complex, to 11 statements them stated the Government give June are the consolidated which domiciled nearest held of ; economic Autoriti the 2020 . Order, and Commonwealth and sukuk Authority issued by facilitate . are thousands, prudential nominees 2004 of Monetari in financial under policies set Brunei Brunei by (the out the the the a All consolidated Entities are entity, rights returns it subsidiary The 2 • • • • following These 2 For NOTES • • • • The 2 securities, Financial 2 and Transaction or financial attributable Financial of Financial 2 . . . . . 3 1 1 2 3 is the financial . . . intra . . 4 3 1 Gold Derivatives Financial Financial Other Investment Investment Investment taken Group exposed, FVOCI Financial Financial the consolidated Basis Basis Classification that financial it consolidated - through that group (Note must liabilities assets year assets receivables assets into assets assets (AMSB) of of give classifies are liabilities, TO costs liabilities assets to are from measurement consolidation or assets instruments account have financial 2 recognised securities securities securities transactions instruments ended it the and . consist and its 8 has controlled held and THE the ) measured directly financial the made and (Note power the acquisition its financial financial liabilities rights, as at current (Note with date financial if subsequent financial instruments 31 amortised practical appropriate, of the CONSOLIDATED at at at up 2 attributable immediately over . IMF, . cash 3 amortised FVOCI FVTPL December the are to by statements 2 to ) group at ; . ability liabilities 4 statements are variable ) 31 the FVTPL group eliminated and ; the or assets liabilities balances ability ; ; stated December cost has issue group measurement entity other (Note to on cost loses and . in to are direct returns the in to initial of at 2019 the . of profit the with have receivables ; are are 2 exercise FVOCI) on The recognised their practical the or . control 5 financial following ) 2019 the consolidation ; recognition acquisition consolidated initially banks from group and Group been or fair relevant . are loss those of The FINANCIAL ability values its . prepared and is the assets added . when measurement comprises measured involvement Group considered rights . of activities entities other to as . from financial the to and exercise disclosed controls . under or In financial Group . the the financial at situations deducted of to with categories fair assets date those the STATEMENTS financial the have and in becomes the institutions, entity the value historical the liabilities consequently rights power or from where entity accounting group : . . financial statements For a Transaction the over party potential and the cost (except investments gains fair an has group liabilities to policies consolidates convention value entity of the control the (continued) voting for costs the to contractual of ability set financial when have measured in the Authority and rights that out equity except financial an to power it below ceases has affect are entity exist, assets provisions and at that and existing over directly : FVTPL assets those to these when debt 15 and the the be an

13 Financial Statements 13 Financial Statements 16 • • categories Based b) a) Classification such Debt Debt The For NOTES so assessment The flows manages The aggregation intentions together asset An • - called arises profit debt FVTPL assets “ cumulative instrument for measured assets FVOCI interest measured cost solely Amortised assessment Net classification the the Group Group the . as instruments instruments will The the on . government cash Group investment gain . The to ’ : year or ‘ : result payments its is worst Interest : Assets Group cash for these Financial recognition rate considers has TO is loss included achieve rather financial . flow and carrying from at ’ Interest not an s cost gain ’ ended s from (EIR) of more flows case amortised and FVOCI business requirements THE factors, that determines subsequent individual characteristics are income performed : business than derecognition or of Assets that assets ’ a and presented method collecting in or all represent do assets than those particular income principal loss amount . of ‘ 31 Interest ‘ on Movements CONSOLIDATED stress is corporate relevant not impairment the from model subsequently that cost previously that December one an instrument, models instruments . in meet the on measurement Group from instrument case for contractual these within order of are and which business income solely are business of for the business information of debt these the bonds, ’ the these held interest scenarios held for managing in investment basis financial classifies to gains “ recognised are payments Net criteria asset ’ the and managing therefore using 2019 generate measured for that - assets model financial objective for by loans, models recognised cash of gains carrying or equity . of ( collection - ‘ instrument SPPI . collection meet scenarios assets available for the losses, debt the its flows, is for securities and on of in amortised ’ ), EIR assets cash the at . debt instruments asset adjusted financial at FINANCIAL the The instruments principal investment and OCI managing amount is other a FVTPL interest method selling in business of included level when definition flows that ; of Group instruments that is basis is profit and contractual measured reclassified contractual receivables included cost that assets and the by . are financial are and . . making revenue The ’ s are its or securities in model any depend Group business taken not reflects is or interest, of loss financial ‘ Group described Interest not is FVOCI in expected a designated into cash at fundamental assets . . STATEMENTS the from ‘ and financial cash Interest part through When assessment does FVOCI on how ’ measured s model business one flows are and income : business foreign instruments of equity or flows below not groups the measured ” a credit both and of that . liability other hedging and at Interest does reasonably financial ’ the where to : exchange FVTPL, to using similar is model . at are models for of loss profit performed comprehensive the FVTPL not following from not which financial selling at income the relationship those are classification allowance income assessment depend asset FVTPL or designated (continued) ” determine expect EIR the gains in measured reflect loss the cash the method is from three assets issuer . at ’ A using on derecognised and and assets, period to a gain recognised flows is how income, . higher management these occur, ’ measurement However, s whether recognised recognised of losses are at . at the perspective, or FTVPL, a the where in amortised represent managed loss effective financial financial which level such on except Group , cash on and this the the the are as of in in ’ it a s Equity at volatility margin i assessment, sell, Where Such the reassesses an At • • • The For NOTES • • • date assets The 2 investment receive return of income investment designate elected, The Examples that Equity . e . 3 . FVTPL . impairment initial 2 assets how model) the and how past Reasonable The An interest existing preceding Group . Group the . the Group do changes The Impairment instruments unbiased instruments carried on the risks time that reported payments and events, the managers not . Group at that recognition year measurement of managed such equity and, its takes business assesses securities includes returns TO initial performance subsequently is equity are business the value contain that are business are consistent period at losses) ended and assesses current investments, in and not Group into to amortised THE inconsistent affect of expected is particular, investments of recognition, of . are instruments the supportable or When financial subsequently only model on established probability a . of money measured account the The model are on instruments contractual models conditions considers entity’s 31 a a of the CONSOLIDATED whether with of consideration business financial the forward reclassification measures not ECL this December to is ; the cost performance the and continue assets contractual or all to a with be reported reflects key each - as to include election at . basic business weighted way information relevant hold Gains and whether very whether - the FVOCI” and reclassified looking FVOCI are asset, irrevocably obligation a that management reporting basic in all lending financial FVOCI : assets infrequent compensated to forecasts basic and which for meet separately is equity 2019 the model evidences cash takes be line amount of when the they lending basis used, the . losses to that ordinary recognised Group the The the arrangement those to in to contractual flows period designate instruments’ time place collect investments and reflect of the the those pay profit personnel and fair definition business is Group that on future arrangement, from FINANCIAL available available risks determines collected) statements the expected value (e value none from and shares to equity . contractual is g or investments the financial . determine in other are determined recognises economic an whether loss, that cash . of ; the model occurred of profit gains Where cash commencement . managed such at without investments money, equity . equity credit start evidence including changes flows of FVTPL, whether the flows assets and or as (and the comprehensive cash the whether conditions of : during a losses are investment loss related from by are undue credit ; STATEMENTS losses the compensation loss contractual and represent the except held flows evaluating in a newly on held consistent as at the first residual fair allowance (‘ECL’) the financial risk, cost disposal the other financial FVTPL within of are or . issuer’s for reporting value where recognised period other business a to at or SPPI recognised associated income terms purposes income a new that interest are collect with effort FVOCI . . range assets is asset Dividends, Impairment . for perspective the basic (the included based business business introduce a period . models such at . basic contractual Group’s when financial of is ‘SPPI held in The lending (continued) the other with in classified possible on the loss following other lending reporting when in Group’s test’) within the model ; the have losses model its that issuer’s exposure the than management at assets risks Group’s debt fair . comprehensive outcomes cash each representing In is, changed and “Net that are . (and arrangement to value and policy making instruments the The date are instrument net measured flows evaluated reporting to generate gains business change reversal right a part assets Group risk of about profit ; since is 17 and this has the on or to of to a . .

13 Financial Statements 13 Financial Statements 18 • • The identification default amount Critical Definition borrower instruments amortised caused It the • • • • Evidence cash A Credit collective expected economic The expects of ECLs • • • ECLs For NOTES financial may the the the the having the a significant credit measured instrument A (referred full within 12 purchase Group Group the breach are are flows - - loss month impaired lifetime difference borrower borrower disappearance not financial lender to is to of required probability of year risk to basis cash 12 of risk granted a receive the allowance asset considers cost be measures of ECL credit TO raise are of to default component months of of (“SICR”) at ECL, financial the . possible determination characteristics or ECL, contract flows as has ended a a financial and credit or assets an is is is - THE funding financial to SICR between Stage the arising impairment i financial to ‘credit unlikely past . FVOCI amount - i e increased . be weighted e . the in after using the ECL for are . of lifetime . borrower, impaired, difficulty to lifetime measured to due such 31 the 2 an following CONSOLIDATED assets - . of from borrower provided become full impaired’ and on the identify asset are to the the December active determination equal asset more the . as an pay lifetime of reporting The ECL Stage includes estimate the significantly ECL credit cash asset’s a of at the individual ECL probability for default its than through have market credit to as the weighting that a a measurement in a that when deep 3 Group - single credit flows concession economic the Note constituting is impaired ) ECL borrower ; original 90 observable result of or occurred - result the date, impaired 2019 12 or for one days discount the a 27 of due is obligations basis, - discrete considers past definition since month loss of of a . (referred from required 2 from whether present or security . on EIR, 1 at or to multiple default or that . due (c) allowance more or . of an Credit any initial The data each the contractual issuer . those that all FINANCIAL ECL regardless event on the event event the factors possible value of material to to Group Group . the because for events about a reflects (PD) - More future reporting ; loss lender impaired recognition default the as default collective - ; of a at loss instead, Stage of Group which such financial allowance default assesses an the under details that reasons of default economic credit credit the would of allowance . amount events following whether The 1 financial as financial date have incurred ) basis in affects ; : . the the losses or obligation bond on STATEMENTS For not full events definition whether instrument . relating is on a combined the contract To equal scenarios, for . detrimental otherwise based it is all . difficulties the yields, events both assets credit These assess determination portfolios is based over other to debt measured financial to to of : the on : and credit losses the if the are are the effect discounted default if on instruments consider the the financial ; measurement life impact or the Group measured referred of borrower’s 12 . instruments ratings present credit of of securities on - cash month of is (continued) the several ; ; an on or a used instruments, at to risk significant flows and financial that individual the and as the value or as financial in that the events on of the that estimated are asset’s lifetime Stage corporate that measuring ECLs of present that ability share measured instruments, are the increase the basis may ECLs difficulty, EIR 3 financial possible and ECL, asset’s assets similar Group of future . value have debt or the the the are as at in a . either For ratings the which The • • • date significantly lifetime been The Significant payment a and When For NOTES • • Loss Presentation the The qualitative significantly The Group significantly Irrespective consequential credit qualitative ability adverse the the are been against of impairment can comprehensive allowance for for cash amount low Group . quantitative Group Group the allowances Group A a net is repayable assessing rating financial has recognised debt borrower financial of financial be SICR rather credit above and completed on year of at income forward reasonable increase related considers the regularly monitors changes TO of becomes increased . since since the another least incorporates instruments of cash since indicator Accordingly, account taking than risk the related Baa ended loss assets allowance instrument for borrower instrument if indicators has on THE A in initial equivalents, initial - directly outcome 2 the objectively expedient income initial 3 looking in ECL 12 is and the demand, for in monitors obligation a for a all into past reversed credit - measured and since allowance strong borrower financial month economic used and 31 are Moody’s financial recognition statements Moody’s recognition CONSOLIDATED the recognition measured account to for . . in due forward supportable determination has December elements The presented is If, initial of the risk fulfil the amount is on ECL capacity determined to . mature ECL the in assets the by a of the asset information at amount statements is the assets a account an low and and and its in . adjusting the recognition the - effectiveness above subsequent unlikely looking The amortised breach of the through event at . . contractual if debt held risk to of above If rating A business same within in to the comprehensive information FVOCI - Group that statements have there the the 2019 . for meet of of assessment, to of securities with occurring financial Such to of the counterparty default information assessed of BBB loss of S&P are statements have the its staging a low : cost has when pay assumes its covenants comprehensive IMF, period, the the year conditions allowance of rating cash financial subject for has loss and credit contractual : low been its the counterparties as carrying FINANCIAL that of deposits instrument portfolio contractual or S&P after been flow triggers Fitch depends credit a credit the is financial income the mechanism criteria placed deduction that risk demonstrates of a to recognised . in assets are and Group obligations account SICR, in . the Quantitative amount financial determined the when obligation, the risk amount its with the key cash that Fitch . for used impairment income with on position impairment is are When payments credit the determination if longer inputs presumes : financial it determined are identifying . from the broadly . flow using of Accordingly, position written has The reputable to Group as of . the consistent type STATEMENTS otherwise . risk a as identify obligations the the indicators, an in term amount the a financial Recoveries external a impairment this are on institutions represents part was external part of off will gross that requirements Group as asset may, significant a the to more financial analysis after whether follows recognised measure whether financial . of . of the the of have asset carrying rating asset, net takes is but in such net the credit of all credit than Group reduced the loss bonds : . and income low accounts the will is reversal institutions income there for or into instrument as increase the credit near uncollectible, 30 to rating amount decreases risk , other necessary not credit assumes based example the overdue assess days (continued) issued loss account . has term through on necessarily, is previously in of risks previously receivables, risk recognised allowance past a on in been of ‘investment the with whether and financial with has the and in credit the status procedures criteria at both have due, it debt the statements a application not the high assets strong the is SICR recognised reduce written written risk qualitative unless use and increased increased based there reporting securities these asset involving decrease as external ; grade’, before is a and credit of non have 19 part has has not the the are off off on an of of -

13 Financial Statements 13 Financial Statements 20 to measured and sum On recognises ownership associated continues another or The covenants depending these introduction affects renegotiated A 2 For NOTES Management Information time and designated managed or A ( for instrument potentially another Financial Classification 2 assets write have (either Debt 2 a) . . . 3 3 4 modification financial profit . . when . repurchasing 4 3 trading derecognition Group whose Financial accumulated . . the - of Financial but assets securities off Write Modification new written in the the entity . party or it year liabilities may its A together at are . to liability - liability amount derecognises and a on loss transfers performance of unfavorable by consideration Financial or TO off write or about entirety or collateralised FVOCI, . and . or off control liabilities liabilities breached) be whether management or If a Financial sources . adjusted of ended those are adjustment . otherwise - the it transferred THE to extinguished off subsequent in a Recoveries of is are for and these and written and/or in financial exchange where equity or the classified Group liabilities a constitutes designated amounts the the any financial derecognition the in at of 31 for liabilities . to CONSOLIDATED is a covenants financial financial a received FVTPL income borrowing financial near timing transferred evaluated liabilities covenant off the is December modified which portion of the . neither asset resulting financial recognised Financial measurement are as existing financial when in cumulative it asset Group term a at held classified response may of liabilities there classified asset occurs that derecognition and asset of transfers FVTPL) do that the is the on between for of in or it) for from ; have covenants or asset, asset, could liabilities receivable assets is and not or . financial its a contractual 2019 the Group only are if in when This trading is evidence fair gain/loss as or is a entirety, to it as the not profit to yet substantially proceeds contractual nor generate provided FVTPL contract financial the the when is is value either or needs initial pay the Group’s met has the designated part affect assets financial retains event if of or and Group Group . FINANCIAL contractual it of If the case basis, no consist previously the cash (e an financial loss, recognition for is of the . received a liabilities the g . that sufficient internally the reasonable acquired existing contractual enforcement . The difference recent substantially a liquidity obligations when a flows all recognises Group continues with liabilities and cumulative change portfolio of cash as will Group the liabilities derivative . are at the recognised terms the either actual at debt or cash on or retains risks and FVTPL or flows amortised intended to Group exception between expectations with rights may incurred may a changes to of to activities governing security the its all immediately flows STATEMENTS pattern fair gain/loss maturity and at deliver identified immediately at recognise substantially another financial apply the retained be FVTPL increase to determines value in rewards inception to to the the principally risks cost settled OCI of in would of will be enforcement repay cash of that (including basis the interest equity cash asset’s of short . entity liabilities is and held result in financial the or interest the recovering of not cash or had the in constitute are the but all at flows that to - rewards ownership financial term for investment another under for carrying financial the subsequently a in the rates the interest those been flows amounts future . may the financial an other the from in instruments Group’s activities profit risks (continued) Treasury indefinite conditions or borrower the the recognised purpose that of of affect a financial asset amount date income rate the exchange asset modification and of - a ownership taking financial subject designated asset liabilities are financial asset the . . own that to Investment reclassified rewards the In A managed period and of . does that financial asset addition, asset that and modification and or arises expire, selling in cash equity to rates asset if held asset also and OCI not the the are are an so as to of even to of when . flows the are if instrument The value discounted including subsequently Derivatives 2 and expired The Derecognition EIR Other (b) recognised Financial For NOTES • • • used The the The presumed The between Fair 2 income . . 6 5 . . Other December prices requires level Level credit counter directly Level equity Level method, entity Group payable value Fair Derivative fair Group’s the fair Group in is financial . making under positive value The includes value value 2 market 3 liabilities year 1 risk financial will securities in : : is to : recent classifies (that that in cash (“OTC”) are Inputs TO derecognises Quoted Inputs the where is difference the derivative its be is not profit re 2019 “Net of of recognised of of ended liabilities Bloomberg the initially financial - do use and valuations its is, flow participants measured price financial financial THE equity fulfill financial a market liabilities for at other as applicable highest gain/loss not measurements derivative and and or non of its as prices FVTPL models prices) the loss that an observable liabilities between instruments fair qualify recognised 31 2018 - debt investments CONSOLIDATED are than financial instruments liabilities financial obligation and in asset . . transactions, and value where December would (unadjusted) Fair at at instruments are initially profit . at on or . and instruments contracts amortised quoted their non for the best value indirectly initially investment or when the measurements options . be hedge possible asset - or market liability measurement The at liabilities financial fair do . use recognised carrying and loss is received prices fair fair . not fair computed . recognised value The is cost 2019 in and . accounting (that on debt pricing value value . data that measured value qualify active securities The primary included liabilities exchanges . amount only valuation Fair is, to instruments are when is at using on Group hierarchy derived models, date sell negative using markets when fair values for FINANCIAL and not the source are of measured within . based an available takes a value hedge . based has subsequently the date quoted fair techniques recognised the asset from as are . has for with of into financial Level value no appropriate and on Group's on accounting obtained input on . prices) the identical or The at assets market its account significant subsequently which observable 1 paid hierarchy FVTPL” following highest that parameters Group immediately liability (for . measured STATEMENTS obligations This or to prices from a . assets are . All . non derivative example liabilities transfer Changes level considers unobservable that and observable derivatives levels derecognised - quoted . market performance measured or like includes at reflects best in : are liabilities a fair in classified the for LIBOR contract liability data relevant market use the discharged, value are for statements structured the the . at components (unobservable fair and yield . The the carried risk, significance amortised (continued) This in majority with prices is under and value the asset an asset’s curve entered which level any orderly as observable consideration cancelled of notes), in of Level or of assets or . comprehensive gains is active includes cost current any This liability, the of into counterparty the inputs) transaction 3 the derivative over using when including hierarchy or as risk or markets and market inputs losses use either at listed . - have paid 21 the that This the fair are 31 is -

13 Financial Statements 13 Financial Statements 22 not and value methods For contracts models rates, value are For significant market actual from A debt liabilities For measurement The For NOTES progress once Construction statements Gains asset’s the that Assets The Fully The Property 2 generally markets, The . 7 financial . estimated all be carrying more financial periods fair assets’ Property other the an appropriate depreciated instruments they an derivatives of Office equipment, machinery & computers& machineryequipment,Office Motorvehicle Furniture,fittings& fixtures Buildings and volatilities other and that market fair is asset for value expected . exchange, such is account and year and based regarded For complex debt are losses increase value instrument based of regularly residual are TO determining used - financial amount instruments . in may equipment techniques these comprehensive of and completed as from observable ended - subject instruments on progress (less OTC and on transacted present THE assets on for and level on be future equipment current in as instruments, financial dealer, observable values disposal major this occurring quoted is costs counterparty instruments, the recognised impaired derivatives being is is to 31 greater are CONSOLIDATED fair purpose regarded generally are consists value bid and cash traded and determined depreciation exchanges forward and to December broker, retained for in inactive instruments, - market values stated are offer income sell) ready are . flows the market which techniques data useful than An the determined is in within are of therefore and fair spread recognised as OTC spreads) exchange industry determined asset’s active . at for of prices in Group in items : its . or Indications - markets and quoted lives value on value cost the transactions respect non are operational other the estimated market, 2019 inputs or broker the markets, carrying consolidated or of and - reviewed are and estimated uses specific standardised is group, existing in there by rates, dealer property in valuation were determined as basis use of reviewed, option using depreciated into comparing unlisted that an internally standard quotes similar . recoverable are FINANCIAL with amount pricing asset use, or active the on price models at at of a valuation based few have pricing under market each - - - - an reporting financial techniques, determination the the at mainly debt financial classification and financial quotations market using recent within arm’s which developed service proceeds resulting is become are on on lowest reporting construction adjusted written models securities is amount methods assumptions from a generally valuation inactive statements length the transactions time 3 to 10 years3to10 7years 5toyears 10 years3to50 straight date if instruments, instruments or using quoted level . illiquid value Bloomberg industry with . This STATEMENTS down regulatory in . models, . these The of date if The The (including basis property that are appropriate, - . market fair input includes carrying techniques inputs line Assets discounted . fair to immediately . until prices Some recoverable Group are when . . . are values Valuation basis If assess which value using of . that derecognised the agency, they observable (for commonly under and lower of there listed amount are those uses over of . of models above the is are example, whether at are equipment In back readily foreign financial significant construction models is the amount equity these widely complexity to inputs with their and usually no . a to These its . (continued) criteria accepted end wide longer to present embedded and those in there estimated techniques, recoverable LIBOR securities exchange to recognised estimate are the assets of is based account bid are these regularly to the reporting are in used such is prices construction - are included offer in yield value use the any higher and not on the models depreciated and . useful the primarily derivatives) . forwards as fair amount indication fair spread . represent curve, valuation valuation available met, financial financial forward present quoted period values of in value lives may - the the the in FX or to is if - . . An asset pre costs The cash that be this there The 2 will is revaluation Changes to Gold 2 For NOTES purpose loss, Once contract but When appropriate, estimated allocating The method Interest 2 depreciation generating determine decreased An recoverable . . . 10 9 8 derecognised hold . . determined - impairment impairment be tax does is - carrying Impairment Gold recoverable . the EIR generates . generating interest is Interest to is a calculating not reclassified recognised the . discount financial any income that sell of method in year not the possible or ” future the measuring asset unit . carrying TO . amount indication a or This In amounts are income no consider interest shorter income . ended cash loss ’ , loss amortisation recoverable assessing For s and the units amount asset rate an as THE longer on in the is carrying to cash initially to . the recognised part integral is turn a cumulative expense amount inflows non Impairment reserve that . EIR, period is do recognised impairment of income method of or and future 31 purpose payments of CONSOLIDATED exists recognised forms - of impairment the so, a the financial value reflects amount at its December expense group an , part amount from fund of the to if are cost Group Group long . credit or no asset part in of An gold gain the in of of recoverable losses recognised . interest current prior if continuing and of impairment loss - use, calculating impairment impairment does term the assets or net ’ the of . s estimates . losses or using relating or similar If An non . subsequently market receipts EIR, the periods loss carrying are any carrying cash reserves 2019 not market expense - impairment . financial the recognised estimated transaction previously The such financial in generating amount to exceed use valuation the loss cash profit rate loss is testing, the amount through calculation amount . indication assessments assessed that amortised over had FINANCIAL flows assets price is of measured or the assets for future loss recognised reversed are in costs been assets interest the loss reserve of unit of the profit considering carrying of the largely are at the is exists, an relevant includes has for gold recognised and cash cash is each cost reversed are of expected reviewed financial at asset or the all in if used been the all - bullion fair independent loss flows in there grouped then accordance amount generating interest of reporting greater other market period or time all value all . to a written STATEMENTS the . a asset only are fees at has financial contractual life discount are cash premiums value - each that bearing . asset together at of discounted valuation The been date recognised paid of to or down unit reporting - with the generating of would of financial reporting ’ the the s EIR asset for or the a value recoverable the to money Section financial terms as change or into is extent received financial which any reserve cash future have the a discounts to or date in in result liability the indications and date of unit their a rate use 7 OCI inflows the instruments . that been (continued) in of the smallest financial is The cash between the amount instruments exceeds the and of to as retained the that asset present . . financial the Group an determined, determine risks “ Net estimates flows of Order the exactly that impairment belongs group asset other liability is specific gains the parties fair value ’ in using s estimated . the for instruments intention When equity ’ s estimated value or, discounts assets of whether the loss on or used using to the and to net assets to when shall gold gold cash 23 and less has the the EIR . or to of of is If a

13 Financial Statements 13 Financial Statements 24 environment Items Functional 2 management Fee 2 adjustment recognised costs Operating 2 Dividends 2 For NOTES As counterparties the settled the Financial 2 statements the Translation translated as Non liabilities the dates Foreign Transactions presented . . . . . 14 13 12 11 15 at at Group settlement - fair . . . . . and the normal monetary 31 Offsetting Foreign Fee Operating Dividend of the of in on currency the a December value the denominated assets year commission and date are using continuing in income a and has of differences to TO as consolidated transactions net and Brunei course fee, in recognised comprehensive . currency the commission gain a presentation ended of revenue items of income and the basis which income legally balances THE transactions custody EIR initial is such 2019 dollar, exchange or liabilities recognised of . . measured service expense The in on loss 31 the transactions enforceable transactions as recognition business CONSOLIDATED and or foreign in financial fee non which right December expense the valuation profit entity currency recognised 2018 to, income are and - rates are monetary is at services in to or is currencies offset , or other and translated recognised statements the historical operates the there offset risk at . right loss . Non and and where the accounting Group’s borne in and charges under 2019 are are when financial - must to date from translation monetary the are items cost no the set (the into provided, of for, in the when functional not “Net recognised event the financial off arising the net denominated the the “functional period instruments, the are Group’s FINANCIAL be the translation Group items amount gain/loss the period functional re customer, of contingent from or recognised - assets fair measured in currency default, in when in right are which value other is profit in a currency”) on such in measured and reported at foreign to which or currency the a on . it is year investment insolvency . operations receive or is liabilities amounts foreign Foreign is as determined a interest significant STATEMENTS loss earned, - future equities related end currency . in The using . using payment the currency exchange exchange that and . event in except or consolidated securities revenue statements held the . the nature act that have the bankruptcy currency is and exchange at are has where transactions established are gains been rates . FVTPL, In is must translated measured been measured these of recognised and offset it (continued) financial of of financial is be are of rates the monetary completed, charged losses cases, . enforceable . the reported are primary at at prevailing at statements exchange . intended entity position FVTPL” resulting the fair This to assets economic as income cover value or includes and both part in at as to when rates from and the the the are are be an all of in is arising which Inventories expensed Inventories 2 within Other with service Advances 2 and insignificant financial Cash 2 For NOTES of party, When amount obligation obligation The amount event, Provisions 2 liability Government Currency 2 other The . . . . . 19 18 17 16 20 the cost in . . . . . the the amount Provisions Currency Inventories Advances Cash and costs a are receivable it assets some twelve the from in or receivable is of is passage of institutions year the issued . when to not the benefit probable statements cash are the When and at incurred inventories also consist TO the risk or suppliers of include months recognised Statements issued present the obligation recognised ended all in cash issued the equivalents sale to consist of can of THE is a will circulation is of end suppliers changes of provision time that a Brunei in recognised of with be equivalents for assets the after of value be are bank claim bringing into is these 31 of measured of the CONSOLIDATED monetary cash . or based economic of received as maturities expenses when the the numismatic Darussalam, circulation December through of notes financial that in consist Group on a coins and is flows reporting those value provision reporting the on measured as the the are other and reliably in purposes an the . is will inventories paid benefits . of use of cash Authority position realised Restricted included Authority the . asset first be coins cash notes less in or assets period 2019 in future . is flows period, required using - favor consumption advance in if than the required and and . and it as first and in . to for is . has (when cash the part the best of are virtually - Advances three other their are taking out coins, to FINANCIAL notes the a and cash statements is not of to recorded settle present estimate the principle, present disclosed months holder cash . the recorded settle included which into flows certain and effect to the normal items, . obligation account suppliers a location coins estimated at Currency are obligation, of and from of of provision separately that as as cost comprehensive the the specially deposit is operating part assets issued reimbursement the STATEMENTS defined time upon and consideration the expire in (legal of date to are and before condition from value circulation risks currency for placements settle minted receipt expected as cycle of a and or circulation, reliable cash the of and acquisition income constructive) they the are money or and of . sum will in required and uncertainties present is packaged are recognised stock circulation to estimate with be are recorded . of cash be used is (continued) received fully all . expected and material) local recovered They obligation, costs to equivalents as or guaranteed can as . that settle at a as consumed, and Any are surrounding collectors’ of and result be face expense . are to purchase subsequently profit international from made the the be its value subject in of carrying amount realised present Note by a or a as of either items third past as 25 and loss the the the the to 4 a

13 Financial Statements 13 Financial Statements 26 to Under (a) are contribution will Defined 2 2 unless They end Accrued returns Sukuk 2 For NOTES c) b) a) The 2 period estimated Employee 2 costs” employee’s according objective Employees The (b) . . . . . 22 22 22 21 23 the Employees Incentive rendered . . have earnings of . . . profits where funds net where gains where incentive 1 2 the are Distributable Employee Sukuk . . . in employees Section the Annual Defined financial are based profits contribution expenses the year recognised of no from to entitlements discounting available liability profits financial profits and profits are TO annual . statements scheme issuance, plans this their available legal on scheme Trust leave 26 ended contribution and eligible the adding year benefits this THE incentive of of include capabilities include for and include are or net performance deducting in Fund earnings the certificates the that initially ownership plans the constructive annual for is recognised effect accrued other the profits to to 31 of Group Order, CONSOLIDATED a are (“TAP”) distribution realised currency realised participate annual market comprehensive bonus amount is December are plans unpaid is at . liabilities to leave and the . The immaterial the The post . their expenses . that provide They and This leave scheme as amount and adding unrealised and Group valuation obligation laws to . Group - as employment The personnel fair provide Supplemental in shall the are incentive represent unrealised unrealised a are of the 2019 value amounts incentives result . contributes commonly market and the of income participates from be Brunei recognised incentive reserve which an valuation amount determined to other and expenses scheme of the liabilities investor pay valuation foreign . Darussalam foreign benefit are services FINANCIAL Contributory subsequently currency to the fund referred liabilities 5 further unsecured to scheme in employees or when gains, calculation is the TAP currency in to currency plans under 10 with for recognised reserve rendered profit cover currency valuation percent to and contributions they goods which by after proportionate under as Section Pension and measured deducting SCP or such valuation to fund Islamic accrue valuation is completing relate and loss are of improve . by valuation referenced STATEMENTS as which reserve ; losses employee’s 8 and usually (“SCP”) employees an services in bonds of to . to the losses, Obligations at the employee the gains, employees the ; retirement beneficial fund the amortised reserve periods the . paid Order, amount Group to provided level by by to monthly monthly six up subsequent adding the deducting - fund benefits 2010 month . during pays to and for benefits ownership A of cost extent provision to the ; (continued) such contributions salary as quality salary fixed back the using trial which follow end expense that schemes the to gains Group depending such contributions period of of year of of the amount is : related there the an the made their from - losses EIR under end prior . to shall asset, employee The are reporting method, . services services defined the of for on to to credit “Staff apply main such and and the net the the the . c) b) a) The 2 d) For NOTES periods only Revisions may assumptions amounts financial In 3 consolidated Assessment exchange is, to removes primarily IFRS 2 Other 2 . . . . 26 25 24 Critical or use the allocation . . . the If above No earnings Within the deducting where the differ that 16 contains, • • Application Other Allocation operating in the application . Reserve market distribution has Fund assets where Fund at where the statements, any year the of to period, for ; accounting from leased and profits the 3 TO has operating accounting assets current replaced financial are consideration as accounting financial months of and until a such ended at the the valuation end these follows been expenses Fund lease of distributable based THE or item) the of the of include total the total and distributable losses of distinction shall in new management the end estimates statements made and the if after year balance judgements : expenses 20 the the 31 and on estimates the balance CONSOLIDATED liabilities balance by reserve Group’s be are of and percent current subsequently . from December market the financial historical period An the a contract on lessees the made recognised financial earnings revised of . optional between Group the end the financial of fund of of 70 earnings that level guidance are accounting of the is unrealised impact and market out the the and percent year, of conveys experience the required to recognised incurs liability IFRSs shall are paid is every Group exemption be paid of key operating 2019 cover will in year, met revision 100 of covered the not valuation - the be up in - is sources result negative up . the IFRS financial to policies, percent as to 30 valuation such determined to IAS consolidated current capital readily capital and pay be the right percent in make and and 16 exists FINANCIAL in 17 by losses transferred the reserve operating of other rentals , and the distributable and capital to of financing year future which Leases apparent income and estimation judgements, period losses, for control of . the recognition it the under factors of the was short the financial for fund . . are periods distributable Reserve the IFRS lease in of to virtually distributable Reserve by leases found the from - Section to described which term the the that Group, earnings, uncertainty adding 16 the arrangements use statements estimates STATEMENTS if of Government Group Fund other and that and which are the extent all the Fund of almost 9 the profit of lease requires an considered low back IFRS is revision in estimate profit these sources the except is is less identified Group that the - and value all greater effective as 16 contracts is Order, such than is of are earnings below incurred leases there to had recognition assumptions . affects to as is Brunei leases shall The be minimal losses to be 20 revised 2010 permitted than no asset are on transferred . notes on be percent transferred estimates Under allocate . (continued) . significant both shall Darussalam credit 1 20 as relevant balance to for . if January of follows to percent the the about first current a IFRS an of by funds the period the and the revision . asset to net sheet be to subsection impact 16 Actual : consolidated . distributable 2019 the the the of , total available charged and associated profit a of (the . the contract carrying Reserve Reserve IFRS time affects on affects results assets future right total 27 and the (a) 16 to in in

13 Financial Statements 13 Financial Statements 28 c) b) a) effect below), The 3 For NOTES property considering There e) d) . 1 . Critical the the Establishing details asset since lifetime Significant so continues Group’s reasons FVOCI the performance judgement financial and Business net item or impaired, carrying amortisation Impairment relate each financial Models credit result ensure characteristics the following on is the a that carrying financial managers no characteristics the and prospective year the of type initial has to risk . in economic judgements that recorded that TO the ECL management property are and continuous business consolidated key amount assets equipment model new assets management significantly characteristics to of are ended increase absence are reflecting recognition should for consistent groups amount of instruments THE drivers be asset, assumptions measured, and portfolios of the on property derecognised stage as assessment appropriate change are provision the performance and may are model an well critical 31 in credit considered as of in of assessment of CONSOLIDATED or of assets managed 2 applying ongoing all financial equipment, has reviewed well increased credit assets credit impairment December not . significant with as property or considers IFRS the to being of and are relevant test risk in stage made judgments, for used as the : be that are the risks Classification and estimating grouped risk . risk 9 with prior equipment for characteristics impairment The of the statements recoverable basis does classification created compensated in : together group for objective 3 of : . and in the The if the that determining Refer ECL evidence changes evidence assets similar changes this accounting indicators Group whether it to the impairment 2019 not Group to equipment is asset on Group their affect is of apart judgement process to not or assess ECL . measured : define the assets credit An to . of and Assets Note determines loss . in assets is, of in maturity . appropriate including applied the In of the change the asset Judgement . from achieve basis the such uses obsolescence or those The the policies measurement pertaining those FINANCIAL assessing whether . what risk of 27 . business whenever performance business will Group’s that moving . . assumptions moves Group as applying 2 of those various as The characteristics . the 1 estimates to there be, constitutes assets evidence shared a how an the for have understand whether ‘low particular they Group worse is allowance model industry monitors involving whether to more to for to business is events the . applied models the or definite stage property appropriate risk of credit an continue which of of physical and performance than financial used details accounting monitors for the existing a characteristics there obsolescence : STATEMENTS to 2 or SICR there business When financial risk’ in judgments the estimations and model equal which when the assets expected useful which in changes and identifying on has . to damage reason these expedient asset In assets assumptions is re portfolio ECLs the the to be its equipment the assessing at been it - and any lives policies assets segmentation objective of 12 operates credit . similar ECL models, a was appropriateness remaining in are If could . for depends or - how the level Refer of (which indication month a any are the . circumstances . physical measured their held change measured an that Refer risk and . assets these whether subject such result most that This . . during asset, to in including . This has are better ECL disposal Monitoring on (continued) with Note measuring to financial reflects is evidence of in are damage that appropriate is increased the in dealt assets Note for assessment required on the to the at business the evaluated the adjustments 27 managed reflects results of stage amortised an assumptions a depreciation indicate . and reporting 2 assets most credit 27 with collective how assets . becoming the 1 to asset exists is . fair for 2 whether significantly 1 . any in 1 part of model the credit separately . significant groups model assets, risk and details This for and value order are that the includes may for item cost period similar to of basis, more of their held SPPI how may idle, that and and any risk the the the the for be an or or of of to of of future of In d) c) b) a) policies The 3 For NOTES Cash 4 results, 31 The expenses, circumstances mentioned . . 2

addition, Cash . industry December

Cash Short Short Totalcash cash and equivalents Less: Restrictedcash Totalcash cash and equivalents Key carrying following physical and on Useful collateral contractual Loss future over Probability movement reasonable and Establishing the and results however, the and and sources

- -

determining equipment year

termdeposits term government treasury billstermgovernment treasury Given cash a and conditions lives above practice, the period TO given that cash amounts wear of . and 2019 are assets equivalents A ended estimation of of Default cash of of operations and have the may THE . change equivalents key and different integral time The default

property estimation over and . are internal flows number . the vary supportable of the estimations tear, amount

: 31 horizon, which 2018 LGD reviewed CONSOLIDATED property : forward in most credit of due per PD due December economic technical could and the technical , the is and uncertainty constitutes there statements the to and and significant an estimated equipment enhancements the useful - changes and be looking periodically that relative assets estimate forward timing those

is

- or calculation materially

drivers

unrestricted equipment evaluation no the

lives commercial 2019 are a that of information change effect in of weightings useful - : management key looking Management of of cash and estimates recorded expected and the . property the affected input on of how are flows lives and in lender

are FINANCIAL loss the obsolescence which estimated information, presented in these relevant of experience expenses updated of brought to amounts comprise arising by measuring and has would forward property be estimates includes changes drivers equipment used available to useful on about expect in if for recognised - the each and looking with expectations Note which default in

and will ECL historical any in the

following the by STATEMENTS legal lives estimates for scenario similar . to affect equipment period 10 is useful PD changes process . is receive, scenarios based use . It of or Based is in based each is data, . those an other : assets the lives would The : differ based When on brought estimate

of in taking on other consolidated would assumptions estimated of the limits on . for factors assets applying

management’s from It be property on measuring is . Group’s each assumptions into affected about

the on possible,

2,956,043

3,010,908 impact of

previous during

1,928,662 mentioned

(continued)

The Group andGroup The

(54,865)

314,354 767,892 the account the

B$’000 type the difference useful

2019 and financial by collective use and likelihood

Authority by Group’s ECL recorded those of changes however, equipment estimates

assessment changes lives of

cash product/market expectations the for above the years between statements assessment of Group accounting the flows

1,643,233

1,561,114

assets of

1,126,162 costs

Restated in

t property .

(82,119) that

113,888 403,183

he he in

B$’000 . default factors due Actual future based

2018 these from as uses 29 . and the the to of at :

13 Financial Statements 13 Financial Statements 30

5 the back Restricted financial rates Short For NOTES position counterparty reflect derivative As As forward) future commitments Derivatives 6 ( The reporting B Debt 2018

Commitments to purchase currencies underforward contracts Commitments to sell currencies under forward contracts . $ .

26 Investment Derivative at

InvestmentatFVOCI: securities

InvestmentatFVTPL: securities

Totalsecurities investment at CO dividend - the ,

Governmentdebt securities Corporatesecurities debt Governmenttreasurybills

Governmentdebt securities Corporatesecurities debt Listedequity instruments - 474 : up 31 securities of . term 31 B the Settlement (Note $ . December, to institutions 1 between , 4 year 992 date . December , 64 extent financial cash 181 held the deposits TO % 11 non financial income ( . to , 2018 013 securities ended currency to classified and ) by . purchase THE of - the ) performance can 1 . : the liabilities the the . is 94 cash with B 2019 contracted from $ disclosed be % 317 assets 31 Group Group’s Group CONSOLIDATED in as banks made in equivalents , or , circulation December 357 listed the 2019 FVOCI amounts

sell

and had . ,

for 607 via involvement in

have derivative The forward

equity one ( Note contractual non liabilities 2018 ) full that . The fair average are as currency - delivery to hedging : 19 2019 are instruments at rate 1 values remaining not B . . financial 33 31 $ expected in 401 % and available maturities commitments December forward of against , to purposes 811 of the forward FINANCIAL 2 these assets balance . 60 recognised ( prevailing

2018 to currency % another for of ) mature 2019 . proceeds derivatives mainly : use

Interest amounts less under B of $ , 49 in in FVOCI market at than contracts by within , consist

090 compliance the

an open earned or the to or ) STATEMENTS agreed are . Group’s via has rate The Group equal 12 forward B

Contract/Notional of

Amountin B$’000 $ and payment presented 4 a months from on , foreign contract 417 maturity forward with do to day maturity for ,

currency 282 90 not cash

- the

(379,478) the to of

after

383,494 exchange days on represent - ( amounts the rate of 2018 day requirements

201 and year .

the more

1,642,141

reporting contracts and

1,406,796 difference

9 on operations

:

605,922 419,762 381,112

198,416 235,345 deposits

and and

(continued)

B$’000 amounts

B

36,929 statements

$

2019 a carry forwards than 2 the of

The specified

t , 802

he he

Contract/Notional

Amountin B$’000

- these risk

as date

Group effective

Authority 12 (non , of with

014 to follows and of Section months representing B ), instruments - amounts

of date

1,882,613 loss deliverable $

banks

1,689,150 used while

5

(378,504)

693,831 400,483 594,836

160,208 193,463 , financial

B$’000 809

381,257 : interest

31,331

due

1,924

2018 in 24

2018 after as , and 780 the the to of to a

Add: SDR holdings SDR Accountreceivable: Accruedremuneration reserveBrunei’stranche onposition

Accrued interest on SDR holdingsAccrued interest SDR on IMF expenses on SDR allocationexpenses IMF SDR on ASSETS Foreigncurrency claims: investment and IMF quota IMF subscription LIABILITIES Less: IMF No.2currency IMF account Currencyvaluationaccount adjustment No.2 No.1currency IMF account IMF SDR allocationSDR IMF securities IMF account IMF accrued IMF Currencyvaluationaccount adjustment TrancheReserve Position The are IMF Borrowings Brunei and Finance deposits Ministry Brunei 7 8 For NOTES

. .

Other Assets

Interest and dividend receivables and dividend Interest Advances to suppliers to Advances Miscellaneous assets Miscellaneous accounted

IMF IMF accounts the

Darussalam’s Darussalam and . account Securities of assets These year held

from Finance

expenses allocationSDR on TO

Economy are for and ended deposits is and THE translated in

Account as liabilities became and Quota accordance repayments

detailed

were 31

Economy CONSOLIDATED

which

. Subscription December The maintained into a with below

member were deposits with

Brunei to IMF is : the accounting the paid

payment by IMF currency country 2019 represented fiscal by the

are the Group agent denominated policy of to at Government FINANCIAL IMF the the the and (as on . prevailing International Domestic a

foreign the depository) in Group of Special currencies Brunei exchange Currency was STATEMENTS Monetary

under Drawing

Darussalam appointed . Portion rates

IMF

Rights Fund

and Account

amounting

to to any (“IMF”) (“SDRs”) be IMF

(407,685)

486,090

380,721 unrealised No

(83,456)

405,893

562,388

379,847 a

B$’000

B$’000

(continued)

15,979

(5,549)

10,447 10,447

13,905

65,698 through

The Group and Group The

The Group and Group The

depository

t

3,500 3,500 2,032 2,032

t

2019

2019 . in

he Authority he

he Authority he Authority

. to 1

529 529

375 375

495 495

,

65 65 The

October IMF

4 4 SDR

SDR the gains 201 Account for balances , Ministry

730 1995

(411,286)

490,999

388,408 or

(84,193)

(10,993)

413,088

573,463

387,328

B$’000

16,932

B$’000

the

10,089

66,991

,

9,658 9,658 6,094 6,094 1,180 1,180 037

2018

2018

losses No .

740 740

378 378

694 694 31

IMF The

91 91

.

8 8 of of in 2

13 Financial Statements 13 Financial Statements 32 value quoted Gold 9

For NOTES .

At 1 January 1 At Revaluation At 31 December 31 At Gold the is hierarchy measured prices year TO

in .

ended active THE at

fair markets 31 value CONSOLIDATED THE REST THISPURPOSEOF HASBEEN PAGE ON LEFT BLANK December at the for identical end of 2019 each assets reporting . FINANCIAL The fair period value . The measurement STATEMENTS fair

value

of

of gold

gold is calculated is

297,404

254,544 254,544

B$’000

under (continued)

42,860 42,860

The Group and Group The

the Authority theAuthority

2019 Level

using

1 unadjusted of

254,544

251,918 251,918

B$’000 the

2,626

2018

fair

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2019

10. Property and equipment, net

The Group and the Authority

31 December 2019

Furniture, Office equipment, Construction-in- fixtures & machinery & Buildings progress fittings Motor vehicles computers Total B$'000 B$'000 B$'000 B$'000 B$'000 B$'000

Cost Balance as at 1 January 2019 41,429 6,017 1,128 321 18,618 67,513 216 5,504 2 4 3,975 9,701 Additions Balance as at 31 December 2019 41,645 11,521 1,130 325 22,593 77,214

Accumulated depreciation 27,215 - 799 259 13,234 41,507 Balance as at 1 January 2019 Depreciation charge for the year 635 - 86 31 2,511 3,263 27,850 - 885 290 15,745 44,770 Balance as at 31 December 2019 13,795 11,521 245 35 6,848 32,444 Net book value as at 31 December 2019

Construction-in-progress is related to the construction of the Group’s new building which is expected to be completed in 2021. 33

13 Financial Statements 13 Financial Statements 34 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2019

10. Property and equipment, net (cont’d) The Group and the Authority

31 December 2018

Office equipment, Construction- Furniture, fixtures machinery & Buildings in-progress & fittings Motor vehicles computers Total B$'000 B$'000 B$'000 B$'000 B$'000 B$'000

Cost Balance as at 1 January 2018 41,311 2,490 1,095 541 17,880 63,317 118 3,527 33 - 738 4,416 Additions Disposals - - - (220) - (220) 41,429 6,017 1,128 321 18,618 67,513 Balance as at 31 December 2018

Accumulated depreciation Balance as at 1 January 2018 26,597 - 699 364 11,057 38,717 618 - 100 56 2,177 2,951 Depreciation charge for the year Disposals - - - (161) - (161) 27,215 - 799 259 13,234 41,507 Balance as at 31 December 2018 14,214 6,017 329 62 5,384 26,006 Net book value as at 31 December 2018

Construction-in-progress is related to the construction of the Group’s new building which is expected to be completed in 2021. circulation In 11 For NOTES The the Under 12 . . accordance

External Currency face assets the Denomination Less: ExternalAssets: $50 $25 $20 $10 $5 $1 Othernotes andcoins $10,000 $1,000 $500 $100 Section Other Fixeddeposit Activecurrency incirculation Investmentsecurities Cash& equivalents cash

value

year

in and TO

assets

Brunei in (liabilities) /(liabilities) of 24 liabilities with ended circulation the THE of

Darussalam the section currency

31 CO, of CONSOLIDATED assets

the December

the 13 in Currency

. - of circulation external

A

restricted breakdown, the

CO, Fund 2019 assets .

the as by of Authority at denomination, the 31 FINANCIAL Currency December has the Fund is are presented sole as shall STATEMENTS follows Authority

at

all below

:

times

to .

be

issue not

1,228,121 1,228,121 1,402,397 1,312,927 banknotes (continued)

174,276 less (15,398)

B$’000 162,131 609,682 106,531 130,962

B$’000

50,003 54,865 47 63,470 14,511 13,915 30,245 41,096

The Authority The 2019 The 2019 8,370 than ,208 A

uthority 100 and per 1,248,786 1,248,786 1,369,842 1,252,758 coins

121,056 166,977 623,284 129,645 B$’000

B$’000

cent

35,037 66,580 34,733 99,463 14,050 30, 40,232 26,000 82,119

8,686 2018 8,965 2018 35 099 for of

13 Financial Statements 13 Financial Statements 36 a) Deposits 13 For NOTES 14 b) . .

Deposits Deposit

Minimumcash balance:

Current account: Current

Deposits:

Section The continuous settlement The settlement can institutions Authority With (SO), Companies the

Deposit from WorldBankfrom Deposit Otherinstitutions

Commercial banksCommercial

Financecompanies

Commercialbank Insurancecompany AMSB be minimum from current year effect 2001 TO

balance maintained, 45

and shall local represents ended within from within (real account of Act THE account balances the be cash banks

- (Chapter of time) 21

the

used

s the

Banking 31

international

December CONSOLIDATED balance for up RTGS and statutory

maintained Real settlement December to of

to each 89 satisfy other local - . Time the ) Order, maintained respectively bank 2017 deposits Minimum banks local the Gross of financial by 2006 , 2019 fund within Minimum the financial the and Settlement as by current . and transfers Cash banks Deposits required other the institutions banks the institutions Cash FINANCIAL RTGS Balance account and local Islamic (“RTGS”) individually and from under Balance . other RTGS financial finance

utilization

2,195,245 maintained companies include

1,400,476 Banking Section .

700,043

B$ This

87,726 and institutions

The Group The is

7,000

2019

’ on

000 companies a : means institutions as

- STATEMENTS an

process 27

Order, a rate

order by holding of settlement

1,540,706

1,441,830

Restated

each the that

B$

of with

94,876

4,000

2018 2008

’ basis and with

000 30 SO the bank licenses

-

- % the

2001

computer , and (without the account balances

and

Authority and . Authority Section under may

other

2,315,245 (continued)

1,400,476 for netting

B$

120,000

700,043

23,852 on

B$

The Group andGroup The

19,631 installations

87,726

t

The Authority The

4,221

2019 be

he Authority he

7,000

2019

’ each

’ the

000 shall 13 institutions

000 the as used A

)

Securities .

current

bank required of be for the

used

1,660,706 and

1,441,830 providing

Restated

120,000

with intraday

account

B$

B$ Finance

23,222

94,876

19,631

4,000 under

2018

3,591 Order

2018 other

’

’

000 as

000 the

-

a

16 Fees 15 For NOTES accordance structure Zimmah financing issuance On 17 The . . . Provisions Other Sukuk 12

provision

the received

As at1AsJanuary Distributableearningsyearfor the Paymentyearduringthemade As at31As December

Provisionforincentive scheme Tradepending settlement Issuanceofsukuk Provisionforleave expenses Accruedexpenses Fees receivedinFees advance

Coupon

Provisionfordistributablethetoearnings Government of November

BruneiDarussalam , size has year principles is liabilities issuance with TO the

a

payable of in for unique ended advance BND a treasury distributable THE Syariah 2018

of

(within 12 months)(within 12

120

structure Wakalah , 31

CONSOLIDATED AMSB relates , 000 compliant structure, December

, 000 earnings

, issued not to Istisna

via cash commonly

treasury or

a its ' to and private received wakalah 2019 first the Ijara mandate Government 10 adopted placement . . in years AMBD The FINANCIAL advance . transaction, sukuk in acts . Islamic of The for

Brunei

120,411

to as

120,000

299,77

B$

167,567 130, licensing sukuk

B$

The Group The

2019

The Group The

finance

’

1,726

2019

finance wakeel

000

’

411 structured

000

48 Darussalam

3

0

STATEMENTS

were

and the by to

Restated

Restated

120,411 issued

120,000

B$ creatively

B$ invest regulatory using

construction

8,

2018

6,28 1,862

2018

’

’

000

411

000

1 is

49

7

- as pursuant

the

the

follows

using concept operations sukuk of (continued) to three (Note AMBD

B$’000 B$’000

The Group and Group The

The Group and Group The

16,558

(16,558)

B$

t

t

2,900

300,182

The Authority The the

2,801 issuance

2019 2019

he Authority he

167,567 130

he A he

The Authority The of

B$

2019

’

000

1,726

2019

99 99 structures .

’ Ijarah

,889

000 2 Syariah

- - -

uthority

.

- - -

Building

24

) : Mausufah proceeds -

Restated compliant

.

Restated

(16,692)

B$

B$’000 B$’000

16,558 19,226 The

16,558 16,558

16,692

with

B$

8,560

6,698 1,862

2018

2,571

2018 2018

’

2018

000

’

37

000

97 97 first an

in

Fi

- - -

13 Financial Statements 13 Financial Statements 38 the Capital (c) (b) (a) The 18 The capital The 18 commence completion namely construction The For NOTES (b) (a) The (c) (b) (a) Effective (d) (c) (b) (a) The 18 . . . 2 1 Equity Order distribution reserve Authority’s Authority second To the To To The adopted The Market Market Market such positions a arising a a the authorized Reserve Capital Reserve Market Currency is adequacy maintain comply safeguard the Government earnings from (iv) (iii) (ii) (i) held net year . other . including advance from of TO fund valuation valuation valuation structure of management by profits fund with regards by Valuation 1 the Fund extent losses where fund amount where funds and where the where ended with the objectives funds Valuation January of capital the a its the was THE is available the building net strong earnings gold, ; deducting underlying and positions monitored which the Authority rental available Government or of that to profits profits profits established reserves as reserve reserve reserve profits is Authority’s its profits of 31 of Brunei capital reserve 2018 losses Reserve the the financial the CONSOLIDATED shareholder’s capital there when such Reserve shall and the of for December is Authority construction net include include include and with . for for for include the market in such in distribution asset Darussalam rental requirements by Authority determined gains not are managing the accounts accordance profits base Fund revaluation investment investment instruments in ability underlying adding of foreign the Fund losses credit be . accordance market Brunei market market The realised valuation stage from to realised may Authority’s which used funds to and support which 2019 third the is structure, funds currencies from under capital continue . as determine the Darussalam valuation by The B except unrealised unrealised with securities securities of asset, deducting outlined amount shall as $ and and outlined structure 2 reserve and gold shall the net with , the capital available advance 000 section the Section are management, other unrealised be the for FINANCIAL profits or Authority . , market ; as unrealised 000 the be development . to as reserve used in measured measured in the istisna rental consists a to . valuation valuation the is assets used the , Sections follows provisions 000 9 going Sections rental 8 in support the shall purpose and of to the valuation amount market ’ stage and fund . foreign to the lease ; account shall The and concern : of stage currency adding be foreign and account at at 6 gains, losses, Order 49 the its the to of determined of will of sukuk of FVOCI FVTPL structure, valuation be from in normal to the cover runs currency the reserve following Section covering STATEMENTS paid for begin the in accordance 51 in by is currency valuation by Brunei for ; Order ; issuance as the unrealised its together conformity of and - deducting such amount up adding operations follows realised and reserve provision the or fund 7 : currency valuation : losses ; capital of economy ijara losses Order the valuation the reserve proceeds to with with back : to , fund gains and lease and sustained the Order the with . is ; the of . valuation and the the losses, such . B ; Central is unrealised amount fund extent $ of currency and the 1 separated construction gains, guidelines as (continued) will , 000 the losses follows to by losses accounting by be that , Banking underlying reserve 000 cover of the by adding used valuation gains to such , 000 there : into arising Authority deducting established such the phase . fund to facilities gains two and The back standards are net asset fund losses from reserve . stages to losses ; entire credit Upon profit from such will the the the for ; by its

Transfer to market valuation reserve fund for investment investment for fund reserve valuation market to Transfer 19. The For NOTES 20

Transfer to market valuation reserve fund for investment investment for fund reserve valuation market to Transfer

Transferreservetofund

Total/ comprehensive(loss) income Transfermarketreservefromfund valuation for investment

Earnings available for distr Earningsfor available Transferred Transferred

Transfertheto Brunei Government of Darussalam

securitiesmeasuredatFVTPL

securitiesmeasuredatFVTPL

securitiesmeasuredatFVOCI . Net table Interest the

Investmentdebt securitiesin

On Investmentequity securitiesin depositswithOn banks

Loss onforeign Loss exchange

gain

- -

- -

debt year

below

Realised(los Unrealised gain (loss) /

Realisedgain/(loss) Unrealised gain (loss) /

as follows: as TO income

/

securities (loss) ended shows THE on

s)

the 31 CONSOLIDATED investment distribution

December

ibution

securities of 2019 available measured

earnings FINANCIAL at for FVTPL the years

STATEMENTS

ended

31

December

The Group and Group The t

The Group andGroup The t

123,720

(

(

(

123,720

B$’000

25,707

67,309

30,704) (continued)

The Authority The :

B$

45,723

2019

32,788 12,935

B$

24,699

(1,823)

(4,135)

30,566

2019

’

2019

000

’

000

(47)

-

- -

138

)

)

he Authority he

he Authority he

(16,558)

B$’000

26,280

(2,626)

(7,096)

(27,332)

26,835

B$

40,179

(24,915)

32,85

B$

2018

(555)

(1,

(1,0

7,320

2018

’

2018

000

’

92

000

(12)

602 39

86)

-

-

9

1

)

13 Financial Statements 13 Financial Statements 40 22. 21. 22. 22. For NOTES

Operating Net Other Staff the

Investmentsecurities

Sale ofSalecommemorative coins Salariesandwages Creditservices Bureau Allowances Paymentsettlements Registrationandandfinancialotherof bankslicensing Bonuses Otherstaffcosts Collateralregistry Long Registrycompaniesofinternational business Otherincome

Consultancyexpenditure developmental and Generalande administrative Depreciation Currencyoperationexpenses Maintenanceequipmentcomputer of& building, office

institutions

- - gain

year

Realised Un

- costs

term incentive term scheme operating TO

realisedgain

on ended

income THE investment

gain

expenses

31

/ (loss) /

CONSOLIDATED

atFVOCI:

December securities

xpenditure

measured 2019

FINANCIAL at FVOCI

B$

16,239

3,26

3,931 3,77

2,931 2,341

2019

’

000 STATEMENTS

The Group The

3

3

Restated

B$

14

4,169 3,620 2,951 2,258 1,861

2018

’

,859

000

(continued)

B$

38,923

14,474 24,449

The Group and Group The

B$ B$

16,

the Authority the

B$

16,237

The Group andGroup The and Group The

10,212

2019

’

t t

3,942

3,105 1,834 2,313

2019 2019

000

he Authority he Authority he

3,931 3, 3,26 2,931 2,341

2019

’ ’

The Authority The

’

000 000

709

327 327 664 664 615 615

738 341 415 415

000

77

85 85

2 2

1 3

Restated

Restated

B$

14,859

B$

(5,193)

B$ B$

4,475

3,620

4,169

2,951 2,258 1,861

15,647

2018

9,668

2018

’

’

8,632

000

6,728 9,471 2,793 2,244

000

2018 2018

’ ’

000 000

850 850 561 561 288 288

697 442 108 108

79 79 18 18

The assumptions inputs determined The 27 27 events (adjusting Post 26 other than The includes In 25 For NOTES

31 December 2018 31December 2019 December 31 Financialassets Financialassets Investmentsecurities Investmentsecurities Derivativefinancial assets Derivativ

FinancialLiabilities FinancialLiabilities Derivativefinancial liabilities Derivativefinancial liabilities

. . . . the 1 Financial Events Related table Authority . Group the the year significant Fair normal are reflect the transfer year - below

e end events) disclosed value

after ranks

financialassets TO based . Parties Government instruments may course market ended events presents

related the of THE to its are on serve

financial the in investment

reporting

of whether reflected data the that 31 party Government CONSOLIDATED its as the of

notes and December Brunei banker provide operation, obtained

hierarchy instruments transaction the financial date in securities to the inputs Darussalam the to additional of and from consolidated levels the financial Brunei 2019 risks during to based act Authority independent those of as and Darussalam the information statements the

Level 1 Level

B$'000 on

Level 1 Level

B$'000 the

1,642,141

valuation FINANCIAL the

1,642,141 Group’s

1,882,613

financial current

1,882,613 the

can

financial subsidiary

hierarchy

enter sources

in

when assets

-

- - financial about

techniques

-

- - statements

accordance

agent

into material company ; and of

Level 2 Level

B$'000 the unobservable

Level 2 Level

B$'000 transactions year to valuation STATEMENTS

liabilities

the . Group’s

are

4,417 .

4,417 Post .

2,802

with

2,802

402 402

40 .

Government observable

49

49

2 2

- year

-

Section

techniques measured

financial with

inputs - end

Level 3 Level

B$'000

Level 3 Level

B$'000 related 9 or events

of

of

reflect

position at unobservable required Brunei the

(continued) fair

parties

- - -

- - that Order,

- - -

- -

value the

Darussalam

at are by . Group’s . Related reporting there IFRS,

B$'0 not .

Total

B$'000

Total

1,646,558 Observable

1,642,141

1,885,415

1,882,613 adjusting

00

were which

. market parties

4,417

Other

2,802

402 402

402 402 date 41

49 no

49 is

13 Financial Statements 13 Financial Statements 42 The fund Risk Credit obligations Credit 27 products systems limits The risk, The financial to business, acceptance The 27 For NOTES • • • summarised IFRS ( published The gain used For Debt ( grade Hong consist b) a) . . 2 achieve 2 If “Stage If risk A debt . most . price 1 PD’s Committee Group’s Directors the Group’s better Credit 9 Expected managers the by securities - financial a Financial . and counterparty Kong, exposures risk Credit outlines continuously primarily . significant the performance financial securities and year and associated risk important by 2 controls, The is an to credit risk ” TO and Group below and but investment the the activities risk emerging and the the do instrument credit appropriate and ended Group of risk management a manages management is rating of risk THE arise China) quality instrument ‘three Group, operational not the interest : increase and not for and treasury or management cash monitored types loss with . of Group any consider managing principally regularly expose yet other agency 31 - . best to financial stage’ CONSOLIDATED policy mix The measurement as and and that each rate group of deemed monitor balance December in and portfolio . practices is and financial treasury Group securities risks controls . credit risk is of it credit model by grade statements that when reviews of not credit to loss in at some . the are the to counterparties between debt the a does the - . credit risk impaired, resulting be bills, risks Group are they for variety credit an risks risk issued same degree 2019 Group its credit securities since not impairment inevitable determined - external fall are exposures are impaired and risk . risk risk time, of have - due or credit from the impaired designed initial is of adherence management by financial and guaranteed having . exposed risk FINANCIAL and financial maintain any ratings monitoring consequence the on . risk, recognition return based Investments based or other significant . initial failure to similar liquidity risks combination such to to instrument identify a and on on treasury by limits readily recognition any policies the of and as characteristics changes realised Government minimise of is counterparty risk credit in Standard significant investment by those identified, being and these STATEMENTS available bills and is means and of risk then analyse default in is risks in activities in market securities potential credit systems & classified exposure the business credit . moved of of guidelines source . the Poor’s to reliable Group’s rates sovereign Taking these quality risk settle financial involve risk adverse and to to . ratings to . in over to Market risks, The “Stage reflect meet its risk and “Stage because and bills asset any since (continued) countries financial the Group’s the instrument is up or effects to directives are single funding risk portfolio 3 core changes - initial their 1 prior analysis, ” set to . ” viewed its - and includes date appropriate aim non and to on financial equivalents (i 12 recognition requirements . e has issued . the is . the - information in is as months, contractual investment evaluation, The Singapore, moved therefore its currency markets, a financial Group’s way AMBD assets to credit risk the are as as to to . 12 (Initial ( Change credit The collective Further • • • For NOTES conditions, derive defaults data counterparties calculation PD adjusted These • • • The ( above, below The (d) risk rating the Due e) c) - month recognition Purchased information A their credit Financial Exposure Loss Probability is overall operational key Group the to following Measuring comprising Significant - Definition recognition) pervasive an agencies, impaired ECL investment the the the explanation in inputs given ECL on to year estimate expected losses basis credit Group low are generally is adjusted defines reflect TO portfolio’s the measured instruments at based or default of . . Stage1 . and used diagram generally credit ended default Their financial simplification of ECL that the increase concept portfolio, quality originated default both THE does probability grade, default of credit exposures a is Group on for - to high result ECL risk financial (LGD) the Explanation also quantitative (EAD) based take not average 31 statistical measuring since summarises assets) CONSOLIDATED (PD) losses derived in in exposures in is which quality likelihood and the provided intend from has ; December credit always Stage credit into and measuring . ; . - . on initial weighted credit Group These instrument : opted default account is default expected of from - rating risk of to 1 impaired measured ECL below and recognition the whereby have - of inputs, of rebut impaired the statistical applied (‘SICR’) for internally are how default securities forward ECL events qualitative models, Lifetime since (Significant 2019 rates estimates the impairment their Baa : as credit the financial assumptions the in investments on practical 2 in initial the assets “ for ECL models 90 possible - over for accordance Group default looking a expected losses and developed as external lifetime days of respective Moody’s measured FINANCIAL factors recognition) stipulated assets a increase assessed future requirements expedient Stage2 determines given are on overdue” if within information and are credit the . basis a based credit are Given lifetime conditions statistical with and time estimation commonly at issuer historical in in using the those (Stage losses an of presumed Investment below on rating IFRS that credit horizon appropriate next the amount . basis under market of rating financial STATEMENTS models 3 there that 9 general the 12 ) BBB techniques agency’s . years rated . is risk . months IFRS It tools will definition investment equal that data Policy for has . is assets “investment and groupings (Credit Lifetime impact The approach estimated 9 S&P tailored it (where not historical . to (other other Statement Instruments should estimation that the - of been and impaired PD expected securities default available), are historical portion to through . when than Fitch grade” as observed consider any (continued) the credit at of Stage3 . . purchased assets) ECL in is historical various Notwithstanding respective a credit of are by applying Stages point based data impaired as is lifetime the forward default downgraded measured well losses categories and global in 2 instance on as originated funds low time or expected on they - rates internal looking current 3 credit credit initial . have on 43 and The the are to of to of a

13 Financial Statements 13 Financial Statements 44 SIN_EMPL SIN_EXP_PRICE SIN_IMP_PRICE SIN_3M_SIBOR SIN_PPI_MANF SIN_CPI_YOY% SIN_GDP SIN_STI each performed The (f) period There noted assessment (although allowance The current expected the EAD securities not the data that flows LGD For NOTES investment The ( further Based • • • following i ) Accommodates separate Readily segment Intuitiveness basis discounted reporting measurement Singapore Singapore the assessment is there is published Forward portfolio Singapore MEVs Singapore due has below on an in an narrowed contractual year assessing that changes considerations those portfolio estimate estimate and been measurement has should available historical portfolio, TO of . forecasting of - . looking date, there those The whether economic MEVs not the ended by as considerations no for of THE down . any in of external be of portfolios’ macroeconomic been assignment terms, the of change including is SICR forecasts users that the which ECL will analysis the information the a the discounting loss the 31 there : process limited CONSOLIDATED balance any be factors is exposure the on and such loss to same potential December rating in are based allowance tested historical a lender default interpret has to repayments and the the severity and as the of SingaporeEmployment Number SingaporeExport IndexPrice SingaporeImport Price Index Singapore3 SingaporeProducerPrice Index Price IndexSingapore Consumer economic countrygrowththefor measures SingaporeinGDP SGD value (absolutemillion) which Singaporeindicesfor mainstockthe ofis Singapore whichoneIndexSTI statistical collective or - operationalize regardless outstanding probability estimation been amortisation agency Singapore on incorporated identified calculation effects introduce following at for the indicators would economic risk probability a for correlation arising nature instance and future a . 2019 . significance these SICR are The basis of - expect understand month Interbank Offer Rate OfferInterbank month : of Macroeconomic economic an techniques weights principal over not should default of from of LGD it factors profiles the financial in whether element of is weighted the can ECL expected with the to the defaults model FINANCIAL more Description default parameter investment . equities be receive, be between date, ECL both to and lifetime credit and variables assets the both or necessary of it the . practical model average . In taking interest early expert significant is to It on incorporate relationship following the quality Variables taking sensitive is measured . be will of LGD the based portfolio repayment absence impacting significant the into judgement . be credit to portfolio, for and The into of debt perform determined : STATEMENTS assumptions account on and (MEVs) Singapore large macroeconomic forward Group’s account on loss between and of the security reflective . credit for available an . the to portfolios the difference As the expected measuring - derive individual looking a modelling Group cash selected issuer based macroeconomic risk assessment result, exposure made of forecasts, Employment Economic Growth Economic Growth Rate Interest Economic Growth Inflation Economic Growth EquityPrice flows the and Group’s bases of counterparties changes between indicators on information the during segmentation 12 forecast basis items) expected approach average (continued) from that measurement months its on Group portfolio the or Category in are . the LGD any a . estimate indicators The In the collective a historical current . permitted credit contractual ECL for collateral would The relation collective estimates within exposure cash approach, based EAD on Group of . losses reporting flows require the and basis AMBD’s the LGD reflects . to on by Given basis from after debt cash loss has the the the the are we for on as a The • • • • • • financial sufficient characteristics, For ( and any Other economic predictive The They The (ii) For NOTES g) LIBOR_OIS_SPREAD US_OIS_3M NASDAQ DJIA S&P 500 WORLD_US_UNEMPL WORLD_US_10Y WORLD_US_IND_PROD WORLD_US_CPI WORLD_3M_LIBOR WORLD_BRENT_OIL WORLD_WTI_OIL WORLD_TRADE_VOL WORLD_GDP geographic industry remaining date credit instrument expected World groupings regulatory, therefore the macro World Groupings are forward World MEVs World : of instruments year risk information indicators power MEVs - initial economic ; economic TO and credit grade no - term are type such looking location ended legislative based will recognition adjustment THE for reviewed ; to ; loss that that be are factors the maturity for on indicators considerations 31 of tested provisions grouped CONSOLIDATED are risk shared Group’s or the the December on liquidity status marketthe OIS LIBOR andSpreadbetweentomeasuretend overnightlendingratebenchmark indicatorthe USD3M as ofOvernight servesSwapIndex inUS companiesthe NASDAQ theequitylargestindexpricesmeasuresof tech US thebiggestcap inmarketcompanies 30largestthe measureIndustrialwhichDowJonesAverage incompaniesUS 500largestequityoftheprices measurewhich S&P 500 US RateUnemployment Yield BenchmarkUS 10Y inUS the industrialUS ProductionactivitiesIndustrial which measures economy inflationworld'sthelargest in whichUS Indexmeasures CPI globally interbanklendingrate World LIBOR which 3Mmeasure energy World crudeBrentoil global measuringprices for demand energy World globalcrude WTIoil measuringdemandpricesfor flowtradeglobally measuresWorld which Volume Trade globally economic thegrowth World GDP whichmeasures (%) ; both - has exposures political ; borrower World group for a risks been regular are on statistically correlation portfolio modelled the MEVs changes, to characteristics shortlisted not made . within basis be 2019 basis otherwise . statistically to on Those significant, with to of a have the a group ensure shared for collective credit ECL FINANCIAL shortlisted Description been incorporated further are for credible that risk intuitive quality considered, homogeneous such basis, characteristics, each statistical will . of factors and When group a both within be grouping reflective STATEMENTS but . further Singapore ECL analyses is . the In are comprised such are performing is above not of examined performed as measured the process deemed : and scenarios, Group’s of non homogenous this before to Interest Rate Interest Economic Growth Inflation Rate Interest Economic Growth Economic Growth Trade Economic Growth Interest Rate Interest Rate Interest Equity Prices EquityPrices EquityPrices Employment - on to on Singapore (continued) grouping, portfolio determine the have such a arriving collective basis Category a as material exposures . counterparties there the of the at shared basis, impact the must highest impact . final 45 risk the be of .

13 Financial Statements 13 Financial Statements

46

Creditgra AAA Aa1Aa3to A1A3to LowerthanA1 Unrated Gross carryingGross amount Loss allowanceLoss Net c Net

Carryingamount * December The amount The Maximum (h) For NOTES impairment The Maximum B maximum The As

Financiallossvalue through or assets atfair profit $ Stage 490 at

Debtsecurities

entity following following the table

arryingamount Credit 31 , 999 1

of December : year

de 12 ,

exposure exposure 585 exposure 2019 is below financial : risk TO

- also month

) tables table . ended exposure and THE exposed presents

2019 assets to to at expected contains 2018

contain credit credit

the 31 CONSOLIDATED and based below to end December the risk risk 2018 an credit an credit ratings of on analysis also - - analysis , Financial Financial

the

the international risk losses represents

Financialvaluethrough at assets fair reporting Group’s of in 2019 of of relation debt instruments instruments the the

1,406,796

1,406,796 deposits credit the securities,

and period maximum

824,546 134,684 188,987 106 152,018

B$’000 to FINANCIAL

2019 Group’s

,561 domestic Assets

OCI risk

subject not

- are is

the

* exposure treasury

credit placed subject maximum held carrying credit to

with impairment risk

1,689,150

1,689,150

with

1, to bills

of assessment

143,314

105,205 221,792

124,448

B$’000

STATEMENTS impairment

94,391 exposure exposure IMF

amount

2018 each highly

and that

-

Maximum exposure to creditto Maximumexposure risk financial

other reputable

of are to from agencies the credit measured government instrument financial asset

B$’000

Deposits withfinancial Deposits

36,929 financial

36,929 risk .

2019

106,994

106,994

B$’000

19,631 25,000 60,363 (continued) at

institutions

2,000

2019 on at

assets B these . $ institutions amortised

-

- securities 486 The

, 090 assets not gross

* ,

569 subject

cost .

B$’000 as

33,255 .

248,631

248,631

33,255 carrying

174,000

B$’000

2018

19,631

55,000 ( at 2018

2018 . The

31 to

-

-

- :

As using exposure currency Apart ( Regular The prices level currency instrument The 27 For NOTES vice Negara Singapore There effect A analysis exchange 2019 A a) Investment Investment weakening 10 . 2 at Thai Renminbi Pound Hong Australian Euro US Thai Renminbi Pound Hong Australian Euro US - . % Group 2 the versa market Currency of 31 would . . internal on from is Dollar Dollar Market strengthening The Brunei Baht Baht reports assumes volatility December, and no risk year the Kong Kong because . rate Sterling Sterling dollar will takes Group’s TO the have analysis risks above of equity is dollar dollar securities securities hedging risk risk variances Darussalam dollar dollar ended fluctuate are the Group’s limited at that THE of on decreased arising the submitted parity Brunei currencies the exposure products, market exposure performed of all Brunei techniques, . 31 Group’s the The CONSOLIDATED assets other because that from under dollar December and Brunei rates only profit the and to to all to variables, to and the the exposure market the the on against of the Authority of or other market the by dollar or which Government Group’s liabilities changes Currency movement Management prices amounts matching SGD loss risk significant in 2019 the against to risk, are particular by are considered such is other above activities in with Interchangeability from exposed shown the which pegged assets market against of as the foreign amounts and the foreign currencies FINANCIAL its Republic interest interest is USD, above, and financial are IMF, IAC to to prices 1 the the : 1 general currencies be . . liabilities EUR, monitored currency risk The which shown rates, on Singapore rates, . of reasonably at investment Market the AUD, that Singapore Group 31 Agreement and are credit remain below December basis wherever follows is the HKD, STATEMENTS by specific denominated risks manages Singapore dollar fair possible that spreads, . the constant portfolios This and GBP : arise (CIA) value possible all Investment would market as is analysis and other any 477,587 from the B$’000 B$’000 customary signed at Dollar 47,759 foreign 11,622 39,906 . or 1,162 3,991 1,903 3,797 2019 2019 . Other the in have 190 380 other 252 847 . Brunei movements future 25 85 variables open SDRs, is end (SGD), between Advisory had exchange based currencies foreign (continued) positions cash tender of dollar its the remain reporting on exposure on flows and the equal currency which is Committee in rates foreign at Government in pegged changes Singapore constant 31 of but interest period there and a December to 481,418 481,418 exposure B$’000 B$’000 opposite currency financial 48,142 48,142 16,951 foreign 1,695 3,424 2018 2018 to equity in . (IAC) 342 is . rate, 47 87 and The the the 8 no ------of .

13 Financial Statements 13 Financial Statements 48 exposed The mismatch a the fluctuate changes Cash (b) Dollar, SDR For NOTES B As B The Price (c) constant, The $ $ Financial Financial 31 Financial Financial 31 Change result 19 160 at prevailing , Group December December - +1% the following analysis , Price Interest 841 the 1% risk 31 Currency flow , 208 Euro, of USD CNY GBP EUR JPY December to , in IMF’s year 620 because in showing relates , of risk assets assets assets assets such 387 interest is fair market TO interest Japanese interest . rate below exposed levels ) table . unit ended value changes 2019 2019 at at at at to THE risk of the rate FVTPL FVOCI FVTPL FVOCI interest 2019 of rate financial of is shows rate interest changes Yen, impact account, to market performed 31 : risk , but CONSOLIDATED repricing price based Pound December the rates 100.00% is may Weight assets 10.92% 30.93% 41.73% rate on 8.09% 8.33% in interest the risk is information on . profit market 0.013% decrease risk 0.00% Sterling essentially Fair Range of rates of Range rates of Range 3.50% for that risk in a and 0.00 10 presented respect reasonably rates value for that may % liabilities - interest 2019 - - - 5.875% and 4.7% the fall 5.875% 7.25% or on be the relating interest a create of in year Chinese specified undertaken both future by equity its rates whose possible ended FINANCIAL maturity investments losses its rate to . Up Up The Renminbi cash fair prices, the basket values 31 risk to to in by value movements Group 91,486 26,475 profile Group’s flows a a December the the is the year year of will in ) the event and . - - Group impact FixedRate . takes of five The listed (in (in fluctuate risk (805) investments cash a 805 2 2 STATEMENTS B B ( - - that weightage $ 5 financial 2019 $ 5 5 Impact onprofit B$’000)(in in on ’ is ) equities ’ that 547,558 580,337 000 years years on 000 major flow monitored interest 1,924 1,924 unexpected exposure : profit ) as ) the risks - a international instrument amounting in of value result or rate Over Over . each Interest fixed to frequently loss movements of with of the 5 5 455,270 418,872 currency would 31,331 36,929 income years years a changes (continued) will effects margins to financial all currencies B Floating Rate by fluctuate other be $ 198 securities is the arise of reduction in (204) as 204 may , instrument 416 fluctuations market variables IAC follows . (i Total Total The . because , 1,094,314 1,025,684 increase e 197 . . , that 33,255 36,929 the level of : prices ( 2018 held U will are . as of of in S . : .

Financialassets Financialliabilities Diversification day investing The problems and Liquidity 27 For NOTES . 2 . Group’s 3 the liquidity other . Liquidity risk . year mainly payment TO objective is needs

of ended the risk

in the THE liquid risk . fund obligations Alongside is that 31 to CONSOLIDATED money is THE REST THISPURPOSEOF HASBEEN PAGE ON LEFT BLANK December ensure the also . Group with market achieved Such that this, will risk adequate instruments 2019 by encounter the may investing Group

4,354,452

5,258,612 result liquidity

B$ FINANCIAL for

The Group The

2019

’ difficulty

000 in imposes from maturities other

is

maintained inadequate in

3,433,239

4,276,314 asset

Restated

exposure

B$ meeting not

2018

’

000 classes STATEMENTS exceeding at

market the all limits

such times commitments as 12 depth on

4,354,450

5,258,612 . debt The months

B$ its

The Authority The

2019

’

000 or Group securities approved

disruption (continued) so associated

as manages to

3,433,239 and

4,276,314

Restated counterparty

B$ meet or

2018 equities with

’

000 such refinancing its

liabilities

day risk . 49 - list to by - .

13 Financial Statements 13 Financial Statements 50 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2019 The following tables analyse the Group and the Authority’s financial assets and liabilities at the end of reporting period into relevant maturity groupings based on the remaining period to the contractual maturity date The Group No specific maturity Up to 1 month 1-3 months 3-12 months 1-5 years > 5 years Total 31 December 2019 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 Financial assets Cash and cash equivalents 1,928,662 - 1,082,246 - - - 3,010,908 Deposits with financial institutions 19,631 - - 87,363 - - 106,994 Debt securities - - - 26,475 580,337 455,801 1,062,613 Government treasury bills - - - 381,112 - - 381,112 Equity securities 198,416 - - - - - 198,416 Assets held with IMF 486,090 - - - - - 486,090 Other assets 12,479 - - - - - 12,479 2,645,278 - 1,082,246 494,950 580,337 455,801 5,258,612 Financial liabilities Currency in circulation 1,228,121 - - - - - 1,228,121 Deposit and balances of local banks 2,107,519 87,726 - - - - 2,195,245 and other financial institutions Deposit balance of international 23,852 - - - - - 23,852 institutions Sukuk issuance - - - 411 - 120,000 120,411 Payables to Brunei Government 106,329 - - - - - 106,329 Liabilities with IMF 380,721 - - - - - 380,721 Other liabilities 299,773 - - - - - 299,773 4,146,315 87,726 - 411 - 120,000 4,354,452 Derivative financial instruments Foreign exchange contracts - Inflow - 124,684 258,810 - - - 383,494 - Outflow - (122,902) (256,577) - - - (379,479) - 1,782 2,233 - - - 4,015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2019 The following tables analyse the Group and the Authority’s financial assets and liabilities at the end of reporting period into relevant maturity groupings based on the remaining period to the contractual maturity date The Authority No specific maturity Up to 1 month 1-3 months 3-12 months 1-5 years > 5 years Total 31 December 2019 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 Financial assets Cash and cash equivalents 1,928,662 - 1,082,246 - - - 3,010,908 Deposits with financial institutions 19,631 - - 87,363 - - 106,994 Debt securities - - - 26,475 580,337 455,801 1,062,613 Government treasury bills - - - 381,112 - - 381,112 Equity securities 198,416 - - - - - 198,416 Assets held with IMF 486,090 - - - - - 486,090 Other assets 12,479 - - - - - 12,479 2,645,278 - 1,082,246 494,950 580,337 455,801 5,258,612 Financial liabilities Currency in circulation 1,228,121 - - - - - 1,228,121 Deposit and balances of local banks 2,227,519 87,726 - - - - 2,315,245 and other local financial institutions Deposit balance of international 23,852 - - - - - 23,852 institutions Payables to Brunei Government 106,329 - - - - - 106,329 Liabilities with IMF 380,721 - - - - - 380,721 Other liabilities 300,182 - - - - - 300,182 4,266,724 87,726 - - - - 4,354,450 Derivative financial instruments Foreign exchange contracts - Inflow - 124,684 258,810 - - - 383,494 - Outflow - (122,902) (256,577) - - - (379,479) - 1,782 2,233 - - - 4,015 51

13 Financial Statements 13 Financial Statements 52 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2019 The Group (Restated) No specific maturity Up to 1 month 1-3 months 3-12 months 1-5 years > 5 years Total 31 December 2018 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 Financial assets Cash and cash equivalents 1,126,162 - 517,071 - - - 1,643,233 Deposits with financial institutions 19,631 - - 229,000 - - 248,631 Debt securities - 28,957 4,766 83,952 549,482 460,412 1,127,569 Government treasury bills - - 5,779 589,057 - - 594,836 Equity securities 160,208 - - - - - 160,208 Assets held with IMF 490,999 - - - - - 490,999 Other assets 10,838 - - - - - 10,838 1,807,838 28,957 527,616 902,009 549,482 460,412 4,276,314 Financial liabilities Currency in circulation 1,248,786 - - - - - 1,248,786 Deposit and balances of local banks 1,445,830 94,876 - - - - 1,540,706 and other local financial institutions Deposit balance of international 23,222 - - - - - 23,222 institutions Sukuk issuance - - - 411 - 120,000 120,411 Payables to Brunei Government 103,557 - - - - - 103,557 Liabilities with IMF 388,408 - - - - - 388,408 Other liabilities 8,149 - - - - - 8,149 3,217,952 94,876 - 411 - 120,000 3,433,239 Derivative financial instruments Foreign exchange contracts - Inflow - 311,313 69,944 - - - 381,257 - Outflow - (308,854) (69,650) - - - (378,504) - 2,459 294 - - - 2,753

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2019 The Authority (Restated) No specific maturity Up to 1 month 1-3 months 3-12 months 1-5 years > 5 years Total 31 December 2018 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 B$'000 Financial assets Cash and cash equivalents 1,126,162 - 517,071 - - - 1,643,233 Deposits with financial institutions 19,631 - - 229,000 - - 248,631 Debt securities - 28,957 4,766 83,952 549,482 460,412 1,127,569 Government treasury bills - - 5,779 589,057 - - 594,836 Equity securities 160,208 - - - - - 160,208 Assets held with IMF 490,999 - - - - - 490,999 Other assets 10,838 - - - - - 10,838 1,807,838 28,957 527,616 902,009 549,482 460,412 4,276,314 Financial liabilities Currency in circulation 1,248,786 - - - - - 1,248,786 Deposit and balances of local banks 1,565,830 94,876 - - - - 1,660,706 and other local financial institutions Deposit balance of international 23,222 - - - - - 23,222 institutions Payables to Brunei Government 103,557 - - - - - 103,557 Liabilities with IMF 388,408 - - - - - 388,408 Other liabilities 8,560 - - - - - 8,560 3,338,363 94,876 - - - - 3,433,239 Derivative financial instruments Foreign exchange contracts - Inflow - 311,313 69,944 - - - 381,257 - Outflow - (308,854) (69,650) - - - (378,504) - 2,459 294 - - - 2,753

53

13 Financial Statements 13 Financial Statements

54

The Group The

Lineitem Asset Cashandequivalentscash

Liabilities Depos

Otherliabilities Sukukissuance (a) notes Statements December The its result, statements The Certain 28 For NOTES

local

The Authority The

Lineitem Asset Cashandequivalentscash

Liabilities Deposits and balances of local banks and . primary

financialinstituti Restatement Impact

s the impact below .

t ad aacs f oa bns n other and banks local of balances and its

financialinstitutions the

s

restatements

year

Group 2018 ’ financial restatements on TO of presentation due

Cash the ended

, Statements to balances THE of Statements

ons statements flows the Prior were

31 consolidation CONSOLIDATED

and,

are for

Year and made December of the the a of transactions Profit and Comparatives result to Financial year Authority prior accompanying or ended and of Loss

other local 2019 year certain Position have other regarding and comparatives 31

been December Other reclassifications reclassifications

notes as FINANCIAL

Previously

reported at

B$’000 AMSB

consolidated

Previously

2018

1,794,519

1,811,992

reported Comprehensive 31

B$’000 for

2018

1,794,519

1,811,992

8,560 December as 2018

the as

outlined

- its year

are on

subsidiary made

and

Reclassification ended

set STATEMENTS the 2018

Reclassification below Income, presented

B$’000 to out Statements

B$’0

(151,286)

(

271,286 31

120,411 conform . for in

(151,286)

(151,286) December

00

(

411 the Statements which

separately

)

)

following

to of

it

Note didn the

Financial 2018

Note

2 , 3 2,

of

1 (continued)

,3 ’ current from

1

2

tables t Changes

in

1

1

the the

Position and

As restated As prior year

As restated As Authority

B$’000

in

1,643,233

1,

2018

B$’000

explanatory

1,643,233

1,660,706

2018

54

120,411 ’ Equity s

year

0,706

8,149

as financial

. at

’

As s and

on 31

a

Sukuk Sukuk

Cash

e gi fo drcgiin f netet securities investment of derecognition from gain Net

Othercomprehensive income

The Group The

Lineitem Cashoperatingflowsfrom activities: Sukuk

(Increase) / decrease/in operating(Increase) assets: Investmentsecurities

Increase / (decrease) inoperatingIncrease(decrease) / liabilities: eoi ad aac of balance and Deposit

Cashfinancingflowsfrom activities:

The Authority The

Lineitem Cashoperatingflowsfrom activities: Netprofitthe yearfor Adjustments for: Adjustments

(Increase) / decrease/in operating(Increase) assets: Investmentsecurities

Increase / (decrease) inoperatingIncrease(decrease) / liabilities: eoi ad aac o bns n ohr financial other and banks of balance and Deposit

Cashfinancingflowsfrom activities: Sukuk

Cash & cash equivalentsendCashcash ofthe& at the year

The Group The The GroupThe and theAuthority

Lineitem Income

Net investmen on (loss) / gain Net Othercomprehensive income Expenses Otheroperating expenses Sukuk

(d) (c) (b) For NOTES

Sukuk

measured at fair value through other comprehensive other through value fair at measured income (FVOCI) income

FVOCI

financialinstitutions

institutions

(

loss Impact Impact 2018 Impact

and the

issuance coupon

coupon

coupon

coupon

coupon

) profit )

cash equivalents atendequivalentsthecash year ofthe

year

andAuthority the on on TO on

cost

cost

cost

cost

Statements Statements

forthe year ended

Statements

cost

THE

31

local

CONSOLIDATED of of

December of

(loss)

t securities measured at measured securities t Cash Changes

ak ad other and banks Profit

Flows or

in Loss 2019 for Equity

the and

local for year Other the FINANCIAL ended

year

Comprehensive

Previously

Previously

Previously

Previously

reported

1,794,519

1,794,519

reported

reported

reported

(588,371)

(588,371 ended

31

230,118

230,118

B$’000

B$’000

B$’000

B$’000

(7,656)

(7,656)

15,270

4,475

7,101

2018

2018

2018

2018 December 31

-

-

-

- -

-

-

)

December STATEMENTS

Income

Adjustments

Adjustments

Adjustments

Adjustments 2018

(271,286)

(151,286)

(151,286)

(151,286)

B$’000

(9,668)

120,000

B$’000

B$’000

B$’000 for

(9,668)

(9,668)

(9,668)

9,668 2018

(411)

9,668

9,668

(411)

(411)

411

411

411 the

year

Note

1,3

Note

Note

Note

5

4

3 5

1

4

5

4

1

5

1

4

4 4 4 5 5 (continued) ended

31

As restated As December

As restated As

As restated As

1

As rest As

(859,657)

,643,233

220,450

120,000

B$’000

B$’000 B$’000

1,643,233

(5,193) (2,567)

14,859

(739,657)

2,012

9,668

2018

2018 2018

220,450

(411)

B$’000

411

411 411

2,012

2018

(411)

ated 55

411

13 Financial Statements 13 Financial Statements

56

Sukuk Sukuk

Cash Note

The Group The

Lineitem Cashoperatingflowsfrom activities: Sukuk

(Increase) / decrease/in operating(Increase) assets: Investmentsecurities

Increase / (decrease) inoperatingIncrease(decrease) / liabilities: eoi ad aac of balance and Deposit

Cashfinancingflowsfrom activities:

The Authority The

Lineitem Cashoperatingflowsfrom activities: Nettheprofit yearfor Adjustments for: Adjustments

(Increase) / decrease/in operating(Increase) assets: Investmentsecurities

Increase / (decrease) inoperatingIncrease(decrease) / liabilities: Deposit and balance of banks and other financial financial other and banks of balance and Deposit

Cashfinancingflowsfrom activities: Sukuk

Cash & cash equivalents at the endequivalentsCashcash ofthe & at the year The For NOTES

Sukuk

financialinstitutions

institutions 5 4 3 2 1 explanatory

and the

issuance coupon

coupon

coupon

coupon operating Expenses cost Expenses measured on income Other measured investments derecognition Income issuance Other and Other institutions and balances Liabilities equivalents Assets Line

cash equivalents at the endatequivalentsthecashyear of the

year

investment TO Sukuk

other item

cost

cost

cost

liabilities liabilities ended

cost - - - notes THE -

of - expenses Net comprehensive at at Net Cash issuance Sukuk local

Deposits

FVOCI FVOCI

local - on gain gain 31 - securities securities

local CONSOLIDATED - financial & accruals coupon the Sukuk December banks Other (loss) from cash and above

ak ad other and banks of

The Authority and The Authority and The Impact Authority and The Authority and The reclassifications

Group 2019

Group Group Group Group on

the the the the

local FINANCIAL Comprehensive Statement operating To to of To payable To Position issuance other To account AMBD To Description and

profit investments reclassify reclassify reclassify reclassify recognise restatements

Previously

Previously

1,794,519

1,794,519

reported

reported

(588,371)

(588,371 liabilities by

due

230,118

230,118 and

B$’000

B$’000

(7,656) account expenses

2018

2018 the of to net loss Sukuk actual Sukuk

-

- -

-

- the

) Sukuk measured Income Profit

local gains/losses

. STATEMENTS made from

impact in to coupon

Adjustments

Adjustments amount coupon banks Statement and . Sukuk balance are

accruals

(271,286)

(151,286)

(151,286)

(151,286)

of

at

120,000

B$’000

B$’000 as

(9,668)

(9,668) Loss consolidation on in

9,668 FVOCI

(411) cost

(411)

follows deposited payable

411

411 coupon derecognition RTGS and of

and from

to from : Financial coupon

1,3 current

Note

Note cost

5

4

3 5

1

4

5

4

1

5

1 (continued) Sukuk within Other

other

with

OCI

in

As restated As

1

As rest As

(859,657)

,643,233

220,450

120,000

B$’000

1,643,233

(739,657)

2018

220,450

(411)

B$’000 120,000 151,286 B$’000

411

2,012

2018

(411) 9,668

ated

411 411 411

CONTACT US

Autoriti Monetari Brunei Darussalam Level 14 Ministry of Finance and Economy Building Commonwealth Drive , BB3910 Brunei Darussalam Phone: +673 238 8388 Fax: +673 238 3787 E-mail: [email protected] Website: www.ambd.gov.bn

ACKNOWLEDGMENTS

Icons made by Freepik from www.flaticon.com