Awards for Excellence 2008: Mongolia

Khan Bank again deserves to win the award for Mongolia’s best financial institution, having built on the country’s vast energy and minerals resources to create a lender with strong financial fundamentals. Its closest rival, Trade Development Bank of Mongolia, had a strong year but still failed to outclass Khan, which posted a 60% year-on-year jump in 2007 post-tax earnings to Tug19.3 billion ($16.7 million). Net interest income surged 57% to Tug53.7 billion, and the bank’s total equity nearly doubled, to Tug60 billion. Despite global market wobbles, Khan Bank managed to maintain a high capital adequacy ratio: at 11.44% it was slightly lower at end-2007 than a year earlier, but still above 2005 figures. Khan Bank’s executives are also expanding its branch network, having opened 45 new offices during 2007 and boosted headcount by a third, to 3,560.