State Bank of Mongolia
State-owned commercial bank
Mongolia's state-owned commercial bank and one of the country's five systemically important banks. Founded in 2009 as a 100 percent state-owned bank, by the time of its 2022 listing its ownership was divided between the Ministry of Finance, with 52.25 percent, and the Deposit Insurance Corporation of Mongolia, with 47.75 percent (Inside Mongolia, September 2022, citing the bank's IPO material).
The bank provides financial services across the whole country and provides most public financial services in Mongolia, processing 90 percent of children's money, 55 percent of pensions and 80 percent of more than 100 types of welfare benefits, with more than 2 million customers, 495 branches and 350 ATMs at the time of the IPO (Inside Mongolia, September 2022).
PEOPLE
Gantur Ulzii
Chief executive - named as CEO of State Bank since 2020 (State Bank profile, via Wikipedia)
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D. Batsaikhan
Chief executive in 2015 - named as CEO of State Bank in the Oxford Business Group Mongolia 2015 banking roundtable
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MONEY
The 2022 IPO - DOCUMENTED
The bank offered 5 percent of its shares to the public to raise 22.1 billion MNT in total, at 590 MNT per share, in a primary offering on the Mongolian Stock Exchange from 30 September to 6 October 2022. It was the first of the public offerings of the five systemically important banks required to go public under amendments to the Banking Law (Inside Mongolia, September 2022).
The IPO result - DOCUMENTED
State Bank's IPO closed with a 304.5 percent oversubscription, with 7,503 orders worth 67.4 billion MNT, described at the time as the highest amount in the history of the Mongolian stock market. The bank said it was then planning a further issue the following year to raise public ownership to 20 to 25 percent (Inside Mongolia, 10 October 2022).
Position at the IPO - DOCUMENTED
In the first half of 2022 total assets stood at around 3.9 trillion MNT, net loans had increased by 11.8 percent to 2.3 trillion MNT, the non-performing loan ratio had dropped to 8.4 percent, and net profit had grown by 125.2 percent to 69.8 billion MNT compared with the first half of 2021 (Inside Mongolia, September 2022).
RECORD
Created as a bridge bank - 2009
The government established State Bank in November 2009 as a bridge bank, taking on the good assets of two failed lenders, Anod Bank and Zoos Bank. The bank was established as a completely state-owned bank in order to ensure banking and financial stability and to protect customers (Oxford Business Group, Mongolia 2013 report; State Bank description in the JCB / ACN Newswire release).
The Savings Bank takeover - July 2013
In July 2013 the government combined the fifth-largest bank, Savings Bank, with State Bank after Savings Bank failed due to a large bad loan to its parent company, Just Group, and previous losses from acquiring Mongol Post Bank, at a cost to the state of 122 million dollars. All 503 branches and 1.7 million customers of Savings Bank were transferred to State Bank (Bloomberg, 22 July 2013, via the State Bank profile; Euromoney special report on Mongolia).
A nationwide state network - DOCUMENTED
Oxford Business Group reported that State Bank, which is fully owned by the government and absorbed Savings Bank in 2013, has over 500 branches in the country and provides a range of vital services (Oxford Business Group, Mongolia 2015).
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How to read this page. Every line names its source. A line marked ALLEGATION is a claim already published by the named source and already in the public record. Decode Mongolia republishes it as reported, with the source named, and has not verified it. An allegation is not a finding, and nothing on this page is proof of wrongdoing.