✂️ BOGD BANK'S STOCK SPLIT | BANKING SECTOR IN Q3 2022 | RUSSIAN TOURISTS IN MONGOLIA

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Thanksgiving is coming! Celebrate at Grazie and try out their special menu. Don’t forget to use Unitel Expat’s promo code “Tday22Expat” to receive a discount.

See you there on November 24! 

🤔 DID YOU KNOW?

✂️ BOGD BANK'S STOCK SPLIT

Bogd Bank (BOGD) has recently announced a 20-for-1 stock split, which will result in a share price of approximately ₮100. As of last Friday, the bank’s stock is trading at ₮2,036 per share. 

• A stock split increases the number of outstanding shares and decreases the value of each share, resulting in more liquidity and greater reach.

About Bogd Bank

During their IPO back in 2021, the bank raised a total of ₮31.8 billion, successfully selling off its 20% stake to the public at a price per share of ₮2,540. Since then, their stock price has fallen by 19.9% to ₮2,034, with the number of shareholders increasing by 23.3% to 1,533. In terms of profits, the Bogd Bank’s interest income rose by 67% to ₮31 billion in Q3 2022, resulting in a net profit of ₮13.1 billion, 56.4% more compared to the same period last year.

A glimpse of history

Bogd Bank is not the first public company to split its shares in the history of the Mongolian Stock Exchange. 12 companies have previously divided their stocks, 9 of them - in the last five years. 

• One of the oldest joint stock companies in Mongolia, APU JSC (APU), underwent two stock splits in 2008 and 2016.

By splitting the stock…

There is no guarantee that the company's valuation will increase. A stock split may raise demand in the short term, but depending on other factors, there’s a possibility that it will lead to a decrease in the company’s valuation in the long term. For example, Tavan Tolgoi (TTL) rose by 39.3% shortly after their stock split, but it’s currently valued at the same amount as before.

📈 DATA STORY

The Mongolian National Chamber Of Commerce And Industry conducted a research among 426 Russian tourists on October 10-25. It showed that 28.8% of the participants arrived in Mongolia to travel, 18.3% - for work, 12.1% - to study, 7.4% - to visit friends and family, 4.8% - for business and investment, the rest - for other purposes. 21.2% of those with a travel visa came to Mongolia to flee the mobilization in Russia. 82.6% of Russian tourists who took part in the research plan to extend their visas.

📱 FEATURING UNITEL EXPAT

Attention soccer fans! 

Unitel Expat is sponsoring the German-Mongolian Business Association's soccer night this Wednesday. The event will feature a World Cup match between Germany and Japan. 

The last time the teams played each other was in 2019 and they drew 2-2, so it’s going to be an exciting game, to say the least! 

There will be drinks, a fun quiz and an opportunity to bet on your favorite team.  

⚽ Don’t forget to register beforehand! ⚽

🏛️ BANKING SECTOR IN Q3 2022

The total assets of the banking sector have increased 3.8 times in the last 10 years, reaching ₮41.4 billion.

To be exact 🔍

The total assets of banks operating in Mongolia has annually increased by an average of 14.2% in the last 10 years. Notably, the five systemically important banks accounted for 92.5% of the industry’s total assets in Q3 2022. Their average YoY growth over the last decade:

• Khan Bank: +16.8%

• Trade and Development Bank: +13.3%

• Golomt Bank: +12.9%

• State Bank: +27.9%

• XacBank: +12.6%

Fun fact: Mongolia's overall economy grew by an average of 11% each year in the last 10 years, 3.2 percentage points less than the banking industry.

Capital growth: the big picture

Generally speaking, there are two ways commercial banks in Mongolia can increase their total assets.

• By issuing loans and making profits from deposits and external funds. As of the last quarter, the banking sector collected a total of ₮16.4 trillion deposits from enterprises and individuals, which is 12.7% less than a year ago.

• By raising money from investors and the public. For instance, Mongolia’s five systemically important banks intend to collect a total of ₮430 billion through their IPOs.

🏃‍♀️ QUICK STORIES

📌 TRQ's revenue falls 40.9% to $391.1 million in Q3 2022. This was mainly due to the 13.4% and 67.2% decrease in the amounts of copper and gold extracted from Oyu Tolgoi during the given period. Compared to last year, the prices for copper and gold fell by 17.4% and 3.4%, respectively.

📌 Parabellum Resources targets resource update in Q1 2023 at Khotgor rare earth project in Mongolia. Their 2,000-meter infill and bulk sampling program was successfully completed, with all core samples now under rare earth oxide analysis. The results will be completed before the end of the year and the updated mineral resource estimate will be available in Q1 2023.

📌 Russia increases electricity exports to Mongolia by 100 MW. The decision was made at the meeting of the Russian-Mongolian intergovernmental commission. Russia plans to raise electricity supplies to Mongolia and China by 19-20% to 5.2 billion kWh per year.

📌 Khan Bank receives long-term financing of $60 million. The bank previously signed an agreement to receive a $120 million loan from the Netherlands Development Finance Company. Half of that amount was granted to Khan Bank in 2021, the remaining - on October 28 of this year. The funds will be used to support green projects and small and medium-sized enterprises.

🟦 TOP NEWS

1. Upcoming modifications to Mongolian Double Tax Treaties (PwC)

2. In Mongolia, a Quest to Democratize Carbon Credits (The Asia Foundation)

3. Former President Elbegdorj Tsakhia on Mongolia’s Democracy and Security (The Diplomat)

4. Concerns over restrictive human rights defenders law passed by Mongolian Parliament (International Service for Human Rights)

5. Mongolia Bringing A Bevy Of World Medalists To Coralville (FloWrestling)