Mongolia's best bank for SMEs 2021: TransBank
TransBank set a new standard for multi-tasking in 2021 as it pulled off a merger during an economy-shaking pandemic.
The union with Credit Bank, completed in July, increases the market share of the institution that Erdenebayar Batchuluun runs. It enlarged the loan portfolio and expanded TransBank’s deposit franchise and branch network, while reducing costs and improving efficiency. The bank’s post-merger share capital rose 46%.
Irrespective of the benefits from the merger, TransBank still had a remarkable 12 months: It was Mongolia’s fastest-growing commercial bank with an 82% surge in total assets.
Its capital adequacy ratio was an industry-leading 35.3%, while liquidity also rose by the same amount. Profitability ratios stack up very well against peers: net interest margin is 5.42%, return on assets 10.1%, and return on equity 3%. Non-performing loans were one-third the sector average.
The numbers have the hallmark of a leading Mongolian bank. TransBank is certainly that, and this year gets Asiamoney’s best bank for SMEs award.
Its innovative policies during the worst of the pandemic served the all-important SME sector well. TransBank’s generous and comprehensive support for clients helped soften the blow.