Hey everyone 👋 — welcome back to the second edition of CMM Capital, where we help investors discover alpha in Mongolia.
We’re just one week away from the big day — the Mongolia Investment Forum (MIF) at the London Stock Exchange! 🎉
Haven’t registered yet? Now’s the time 👉
Alright, let’s dive in 😎
Investor's Guide to Mongolia: Bank Equities
Mongolia’s capital market has been on quite a transformation journey over the past few years with Banking Reform, OTC Market launch and privatization discussion of state owned companies.
The Banking Reform brought tens of thousands of new investors into the market, turning the Mongolian Stock Exchange (MSE) into part of the national conversation. And the results speak for themselves — total market capitalization doubled from ₮5.98 trillion in December 2021 to ₮12.13 trillion by June 2025, one of the fastest growth periods in our financial history.
💡 Did You Know?
Mongolian SIBs:
44% of Total Market Capitalization: SIBs now represent nearly half of the entire stock market.
Over 50% of the TOP-20 Index: Bank equities are the dominant force in benchmark index performance.
57% of All Dividends (2024): More than half of investor dividend income comes from SIBs.
From Companies to Market Pillars: Bank stocks are no longer just individual listings — they are the foundation of Mongolia’s equity market.
💎 Mongolia’s banking boom is rewriting the rules of the market.
Mongolia’s banks are on a roll — total assets surged to ₮72.6 trillion by Q2 2025, now topping 87% of GDP, while NPLs fell to a historic 4.9%, highlighting both resilience and smarter risk management.
SIBs are not just growing; they’re making serious profits. Khan Bank leads the pack with $5.95 billion in assets and an impressive 29% ROE, while peers are holding steady with 16–22% ROEs, supported by healthy margins and strong loan-to-deposit ratios.
Yet despite this strength, Mongolian banks remain undervalued gems offering attractive dividend yields—Khan Bank 15.3%, Golomt Bank 8.4%, XacBank 5.4%. For investors seeking stable earnings, high yields, and exposure to a rapidly growing economy, Mongolia’s banking sector is a story worth watching.
But today, a critical question emerges: Now that the SIBs are listed, what is the next step?
The next chapter is about attracting long-term institutional investors, preparing for possible international listings, and raising governance standards to global levels — the kind that truly define world-class public companies.
But here’s where it gets really interesting for investors — the 20% ownership cap on banks hasn’t been fully enforced yet. That means some major ownership shakeups could be on the way…
Read the full report to explore detailed insights on Mongolian SIBs, including their valuations, equity potential, and strategic market implications.
In this second edition of the Investor’s Guide to Mongolia: Bank Equities, the report provides a comprehensive overview of the current banking sector and highlights the opportunities available to international investors.
💡 Here are some of our recently published CMM insights:
👀 Market News:
