Financial information

Credit rating

On credit opinion update of May 15, 2020, Moody’s international credit rating agency reported B3 rating on domestic currency bank deposits of TransBank, which is the same level as Mongolian sovereign credit rating. 

Outlook  Negative
Local currency - LT/ST Deposit Rating B3/NP
Foreign currency - LT/ST Deposit Rating Caa1/NP
Baseline Credit Assessment b3
Adjusted Baseline Credit Assessment b3
Counterparty Risk Assessment - LT/ST B2(cr)/NP(cr)
Long term Issuer Rating B3
Short term Issuer Rating NP

/in thousand of MNT/

Balance sheet items 2015 2016 2017 2018 2019
ASSET
Cash and cash equivalents 25,400.77 178,186.35 92,374,661.94 179,445,561.10 200,118,374.34
Due from financial instituitions 17,020.92 53,779.47   - 10,003,424.66
Financial investments (available for sale) 9,140.00 - 36,950,056.54 29,448,483.79 26,168,794.46
Loans and advances to customers (net) 7,703,239.84 7,324,724.80 70,483,770.64 289,072,997.64 254,523,392.50
Foreclosed assets /net/ 1,231,065.00 1,181,325.00   - -
Other financial assets 318,502.07 400,702.56   237.88 685,693.51
Other non-financial assets     963,714.36 1,057,125.91 26,079,085.23
Property and equipment 768,471.51 740,948.95 1,734,329.33 2,181,152.46 6,226,801.53
Intangible assets 1,262.71 7,763.51 540,031.13 636,568.94 747,771.44
TOTAL ASSETS 10,074,102.82 9,887,430.63 203,046,563.95 501,842,127.72 524,553,337.66
LIABILITIES AND EQUITY
Liabilities
Current account 88,906.37 161,484.32 225,247.43 25,057,965.01 57,926,709.03
Savings 26,489.67 40,280.05 110,015,858.50 338,506,567.25 354,503,554.07
Other liabilities 52,087.14 205,759.17 47,382,219.37 61,062,014.63 30,390,875.92
Total liabilities 167,483.18 407,523.55 157,623,325.30 424,626,546.89 442,821,139.02
Equity
Share capital 16,000,000.00 16,000,000.00 50,000,000.00 78,000,000.00 78,000,000.00
Revaluation surplus 16,353.39 16,353.39 571.18 571.181 571.18
Other components of equity 27,946.69 27,946.69 27,946.69 27,946.69 92,931.83
Retained earnings (6,137,680.44) (6,564,392.99) (4,605,279.22) (812,937.05) 3,638,695.63
Total equity 9,906,619.64 9,479,907.09 45,423,238.65 77,215,580.82 81,732,198.64
TOTAL LIABILITIES AND EQUITY 10,074,102.82 9,887,430.63 203,046,563.95 501,842,127.72 524,553,337.66
/in thousand of MNT/
Income statement items 2015 2016 2017 2018 2019
Interest income 29,025.56 345,812.46 3,504,839.66 24,673,364.55 57,389,099.42
Interest expense 2,707.16 1,859.26 825,381.56 12,976,558.93 39,897,851.25
Net interest income 26,318.39 343,953.20 2,679,458.10 11,696,805.62 17,491,248.17
Net trading income/expense (381.37) (174.37) (102,883.95) 563,078.25 700,224.78
Net exchange and revaluation adjustment expense (1,819.04) (10,699.61) 5,876.73 (231,652.30) 318,738.47
Other operating income 375.98 84.50 626,162.61 882,882.82 801,601.78
Total non-interest income (1,824.43) (10,789.48) 529,155.38 1,214,308.77 1,820,565.04
Net operating income 24,493.96 333,163.72 3,208,613.48 12,911,114.39 19,311,813.21
Other operating expense 743,206.07 587,792.72 1,912,070.26 5,750,821.31 7,630,095.81
Net interest income before provision (718,712.11) (254,629.00) 1,296,543.22 7,160,293.07 11,681,717.41
Provision expenses 12,452.55 154,761.39 976,277.64 1,555,978.78 6,317,316.81
Net profit operating (731,164.66) (409,390.39) 2,272,820.86 5,604,314.29 5,364,400.59
Non operating income 247,207.94 307,310.94 354,876.04 1,723.81 514,606.52
Non operating expense 3,550.90 324,633.10 432,579.23 372,550.70 237,825.79
Profit Before Taxes (487,507.63) (426,712.55) 2,195,117.67 5,233,487.41 5,641,181.33
Income tax expense 1,216.25 - 245,143.90 1,408,138.96 1,124,563.51
Total comprehensive income for the year (488,723.88) (426,712.55) 1,949,973.77 3,825,348.45 4,516,617.82
Prudential ratios by the Bank of Mongolia
2015 2016 2017 2018 2019
Capital adequacy ratio > 12% 38.58% 113.87% 52.15% 24.2% 25.9%
Tier 1 ratio (>9%) 38.42% 113.67% 52.15% 24.2% 25.9%
Liquidity (>25%) 26.20% 56.92% 58.61% 33.7% 53.1%
Foreign currency open position ratio (by each currency) <+-15% -2.00% -0.30% -14.66% 8.6% 4.9%
Foreign currency open position ratio (total) <+-40% -1.03% 0.20% -14.75% 8.8% -14.2%
Total Loans and other equivalent asset provided to related parties <20% 18.69% 21.10% 19.23% 6.3% 15.4%
Loans and other equivalent asset provided to a related party <5% 2.35% 0.00% 0.00% 2.9% 4.8%

million MNTсая төгрөгөөр

Indicators to evaluate the target for reducing the non-performing assets Date of strategy approval (2019.12.31) TARGET REDUCTION OF NON-PERFORMING ASSETS

               As of reporting period                         /2020-06-30/

Short term         (1 year) Medium term    (2-4 years) Long term                             (5 years or more)
2020.12.31 2021.12.31 2023.12.31 TARGET PERFORMANCE PERFORMANCE %
Total loan amount 261,083.49 196,818.63

210,103.95

315,155.92 267,399.15

263,261.09

98.5%
Non-performing loan amount 11,581.75 18,559.83

25,212.47

31,515.59 16,293.02 14,786.20 90.8%
Non-performing loan share 4.4% 9.4% 12.0% 10.0% 6.1% 5.6% 92.2%
Loan loss provision 3.1% 7.3% 7.5% 8.0% 4.7% 4.7% 100.3%
Non-performing assets other than loans 47.76         47.76  
Provision for non-performing assets other than loans 47.76         47.76  
OTHER INFORMATIONS
Restructured loan share 11.2% 10.0% 10.0% 10.0% 10.0% 6.6% 65.6%