Golomt Bank

Financial Review

Total assets of Golomt Bank increased by 48 percent or MNT 1.2 trillion from the previous year, reaching MNT 3.7 trillion (USD 2.27 billion) in 2013. The Bank has contributed significantly to target sectors of the Mongolian economy through actively participating and cooperating with projects implemented by the Government as well as by the Bank of Mongolia. Total capital of the Bank increased by 49 percent or MNT 108.2 billion, reaching MNT 329.7 billion (USD 199.3 million), which was resulted from net profit of MNT 56.9 billion, subordinated loan of USD 10 million received from Bodi International LLC, and preferred shares of MNT 16.4 billion.

The amount of total deposits increased by MNT 105.1 billion or 5 percent, reaching 2.16 trillion (USD 1.31 billion). This is the largest deposit share of the entire Banking system of Mongolia, constituting 22.6 percent of the total deposit. Individual deposits amounted to 56 percent of the total deposits to the Bank. Therefore, the Bank maintained its leading position in terms of deposits in the banking system.

Net loans amounted to MNT 2.2 trillion (USD 1.33 billion), an increase of 54 percent or MNT 771.4 billion, and thisconstitutes 21.1 percent of the total loans in the banking system of Mongolia. The Bank increased its mortgage package by more than 90 percent and SME loans by 100 percent, supporting the growth of loans for individuals and SMEs.

As a result of effective asset liability management policy to maintain sufficient financial resources as well as to deliver the highest possible return, net profit of the Bank reached MNT 56.9 billion with an increase of MNT 30.7 billion (117 percent) from the previous year.

In terms of operational income, the Bank enjoyed net operational income of MNT 167.0 billion with a total increase of MNT 76.9 billion or 85 percent. These thriving achievements resulted from increases of net interest income of MNT 49.1 billion and non-interest income of MNT 27.8 billion.

During the reporting period, return on equity increased by 26.8 percent, return on assets by 1.9 percent and net interestmargin by 4.6 percent, achieving higher results compared to the previous year.

Operational income increased by 85 percent as a result of increased operational cost by 48 percent. A decrease of costincome ratio by 40.7 percent indicates that cost-efficiency improved.

Golomt Bank operated in compliance with all requirements set by the Bank of Mongolia and other regulatory agencies. The capital adequacy ratio of the Bank was 16.7 percent, higher than the required 14 percent set by the Bank of Mongolia. The liquidity ratio of 43.3