An impressive measure of success was the bank’s RoE, which soared to a record 57.3% last year. Khan Bank has achieved strong growth across all its business units.
Last year also marked another record period for Khan Bank’s IT investment and expansion. Nearly 70 offices were converted to full online status through the use of VSAT antennae, fibre optic and wireless connections. There are now 255 online offices handling the bank’s network, the largest in Mongolia, with 75% of all payments and serving 80% of Mongolia’s households.
The bank has opened a state-of-the-art card and payment processing centre, becoming the only bank in the country linking cards directly to customer current accounts. This significantly expanded the bank’s capability with Visa and doubled the number of cardholders. Internet banking services were also made available in 2006, and Khan Bank continues to connect some of the most remote areas of Mongolia to the web by making internet cafes available to the public.
The Khan Bank Incubator was launched last year to target SMEs. The team provides advisory services, conferences, seminars and networking events for the business community. Corporate banking was expanded and delivered a strong performance, with the development of a full corporate banking capability, which is expanding rapidly. The bank also works closely with Mongolian expatriates working in Korea.
“The Mongolian economy continues to boom with mining, construction and organic entrepreneurial growth throughout the country,” says chief executive Pete Morrow. “Khan Bank’s unique 450-branch presence everywhere has enabled us to ride this crest of growth. We grew loans and deposits by more than 70% in 2006, and in the first nine months of 2007 added another 60% of assets. To handle all this, we are making major investments in technology, office expansion and people.
The increase in mining activity is a major boon to us, as we have both a dedicated mining department in Ulaanbaatar to handle corporate needs and a local presence near every mine site in Mongolia where we serve local operations and employees. Almost all the significant mining companies now use our services.”
