Khan Bank
Khan Bank’s excellent financial performance was achieved through the re-engineering of the asset and liability structure, which lowered liability cost and enhanced earning asset base, and resulted in an acceleration of the bank’s net interest margin and earnings power.
Investment in technology has also played a major role in the bank’s business strategy. The number of offices benefiting from online facilities was brought to 180, making instant transfer available to more businesses and consumers in local areas. Even more challenging, a pilot project was developed for some of the 100-plus Khan Bank branches in communities with no electricity. Six such branches were successfully connected to online facilities with self-sufficient solar and wind power. A similar initiative was taken to enable phone access to rural villages using wireless modems connected to the bank’s network.
“[The] management has spent the past two years repositioning Khan Bank for major growth,” says chief executive
J Peter Morrow. “We have reduced loan interest rates for all borrowers, stimulating significant new volumes. We have invested heavily in network infrastructure that is bringing more services to every corner of Mongolia. And we have ramped up our efforts in corporate and international banking.”
“As a result, loans and deposits increased 60% in the past year. RoE increased from 36.6% in 2005 to 60.5% in 2006. Nearly 70% of Mongolia’s households bank with us, and many corporates find that our unmatched network and advanced IT make us the bank of choice.”
