december 2008. bank highlights bank highlights senior unsecured emtn (foreign currency)ba2 lt/st...

December 2008

Bank HighlightsBank Highlights

Senior Unsecured EMTN (foreign currency) Ba2 LT/ST Bank Deposits (foreign currency) B2/NP LT/ST Bank Deposits (domestic currency)Ba1/NP LT/ST Issuer Rating (foreign currency) Ba2/NP LT/ST Issuer Rating (domestic currency) Ba1/NP Subordinated Obligations Ba2 Outlook Stable

Bank Ratings by Moody’sBank Ratings by Moody’s

Financial Results (USD)Financial Results (USD)

1

As at 31 Dec 2006 2007 2008**

Total Asset 336.3 444.5 527.6

Total Loans 198.7 301.6 352.8

Total Deposits 256.1 365.3* 401.8*

Total Equity 32.9 47.5 60.1

Net Profit 9.3 12.9 13.8

Capital Adequacy 19% 14% 14.2%

ROAA 3.1% 3.5% 2.8%

ROAE 27% 32% 26.2%MNT/USD = 1,267.51 12/31/2008

* .Including $ 75

million bonds** .unaudited

■ Best Capitalized bank in Mongolia

■ Rapid growth and improving asset quality

■ Mongolia’s #1 corporate bank

■ Dominant market share in the corporate

and SME client segments, FX, money and

bullion markets

■ Leading international trade facilitator of

Mongolia

■ First Issuer into the international capital

market from Mongolia with a diversified

funding base

■ Continuously strong credit fundamentals:

Very high profitability with well-

managed cost/expenses

Diversified loan base and good quality

assets

Prudent risk management and

corporate governance

Rated Ba1, i.e. four notches above the

Mongolian sovereign, by Moody’s

Mongolia’s Best Capitalized Bank and Market Leader

Market Share by Profit*Market Share by Profit*

Market Share by Deposit*Market Share by Deposit*Market Share by Assets*Market Share by Assets*

Market Share by Loans*Market Share by Loans*

* As of 31 December , 20082

Asset/Loan growth exceeds sector’s medianAsset/Loan growth exceeds sector’s median

* As of 31 December 2008

Assets and Loans Assets and Loans Asset Composition*Asset Composition*

Comparison of Assets and Loans to Banking SectorComparison of Assets and Loans to Banking Sector

TDB Asset Growth 63.4% 41.6% 32.2% 18.4%

Mongolian Banking Sector Asset Growth 42.3% 42.0% 51.8% 7.8%

2005 2006 2007 2008

TDB Loan Growth 76.5% 49.4% 54.6% 16.9%

Mongolian Banking Sector Loan Growth 48.0% 41.7% 66.2% 1.6%

5

Decreasing Non-Performing LoansDecreasing Non-Performing Loans

Loan ClassificationLoan Classification

Gross Loans & NPLsGross Loans & NPLs Portfolio Composition*Portfolio Composition*

* As of 31 December 2008

Normal 91% 93% 97% 97.0%

Past Due 2% 3% 1% 1.5%

Substandard 1% 1% 1% 0.3%

Doubtful 3% 0% 0% 0.1%

Loss 4% 3% 1% 1.2%

2005 2006 2007

6

2008*

Capital Adequacy exceeds requirementsCapital Adequacy exceeds requirements

Prudential RatiosBOM

ThresholdRatios

TDB 31

December 2008

Capital adequacy ratio >10% 14.2%

Liquidity ratio >18% 37%

Foreign currency exposure <10% 7.7%

Single borrower exposure/ Capital funds <20% 18.3%

Related party lending / Capital funds

<5% 0.1%

Bank of Mongolia RequirementsBank of Mongolia Requirements Capital Adequacy RatioCapital Adequacy Ratio

BoM minimum required level

10%

Capital adequacy ratio is 14.2%*, above the minimum 10% required by BoM

BoM has been revising requirements and guidelines to promote the banking system in Mongolia which would benefit TDB

* As of 31 December 20088

Contact us

International and Investment Banking DepartmentMr. Zoljargal Naidansuren, Head of International and Investment Banking Department

Tel: +976 11 319943 Fax: +976 11 312418 Email: zoljargal@tdbm.mn

Mr. Munkhbayasgalan Anya,

Head of Marketing and Product Development Department

Tel: +976 11 328231 Fax: +976 11 328231 Email: munkhbayasgalan@tdbm.mn

Relationship Manager:

Ms. Erkhembayar BaltsukhTel: +976 11 319943 ext. 1426 Fax: +976 11 312418 Email: erkhembayar@tdbm.mn

Trade and Development Bank of Mongolia Juulchin Street - 7, Baga Toiruu - 12Ulaanbaatar, MongoliaSwift: TDBMMNUBWebsite: www.tdbm.mn