On August 22, 2024, "State Bank" JSC, registered in the 1st classification of "Mongolian Stock Exchange" JSC, presented its operational and financial results for the first half of 2024.
In the reporting period:
The performance of the bank’s operational plan:
Within the framework of BUSINESS PLAN in 2024, State Bank aims to create its market expansion and achieve financial indicators to the target level, provide financial education, advice and information aimed at supporting the middle class, increase the availability of products and services, transforming digitalization and the activities carried out in relation to strengthening the bank's activities in an environment-friendly, socially responsible and proper governance. As of reporting period, Bank has reached the target level and fulfilled the planned performance.
Financial results for the first half of 2024:
As of June 30, 2024, the bank's total assets reached MNT 5,531.2 billion, an increase of 37 percent from the previous year, and the total loan portfolio reached MNT 3,140.9 billion, an increase of 30.2 percent from the previous year, the percentage of NPL was reduced by 3.1 percent from the previous year to 6.2 percent. Also, the bank's equity reached MNT 569.2 billion, an increase of 14.4 percent from the same period last year and the profit after tax increased by 2.7 billion MNT from the previous year, making a net profit of MNT 44.8 billion in the reporting period.
During the reporting period, the bank consistently has met the Bank of Mongolia's prudential requirements, of which the liquidity ratio was 37.9 percent, and capital to risk-weighted asset ratio was 15.8 percent respectively and has been maintaining risk-bearing capacity and prompt execution of customer’s payments.
Highlights of the first half of 2024:
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Raised a funding of USD 31.5 million: By strengthening its cooperation with Cargill Financial Services International of the United States of America, Bank has raised a total of USD 31.5 million funding to support agricultural sector loans.
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The human resources policy was redefined:
By reforming the Bank's "Human Resources Policy", we have strengthened the system of human resources governance, management and implementation of rights and obligations, develop organizational culture and increase employee participation, ensure human rights and gender equality, and make employees work more productively, satisfactorily, and rigidly. The system of sustainable employment has been strengthened, and the legal framework for the implementation of human resources policies and activities has been improved.
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The bank started to issue “Khorshoo’s member – Herder loan”: In accordance with the resolution of the Government of Mongolia, the Ministry of Food, Agriculture and Light industry, the Ministry of Finance, the Bank of Mongolia, the Credit Guarantee Fund, and commercial banks have mutually agreed and signed agreements to support traditional animal husbandry and have started providing "Cooperative Member Herdsman Loans".
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Herder's loan term has been extended: Due to the severe winter and spring conditions in the country, the period of herder’s loan with a balance of MNT 674.0 billion in 57,069 loan accounts has been extended by 12 months. Out of this, the interest rate for loans granted to herders with a balance of 599.2 billion MNT in 48,879 loan accounts was changed to 6 percent in 2024.
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Successfully organized the regular meeting of shareholders: On April 29, 2024, the Board of Directors' opinion on the 2023 operational and financial reports of "State Bank" JSC was approved at the regular meeting of shareholders.
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Dividends of MNT 49.9 billion were distributed: According to Resolution No.10 of the Board of Directors of State Bank JSC dated February 19, 2024, a total of 49.9 billion MNT dividends from the net profit at the end of the year of 2023 was distributed to 9,211 shareholders on April 22, 2024 through “Mongolian Central Securities Depository” LLC and the bank.
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