, China

XacBank is a growing franchise, says Moody’s

Moody's has assigned XacBank  a D- Bank Financial Strength Rating. The Mongolia-based bank also received a Ba3/NP for long- and short-term local currency deposit ratings; a B2 /NP for long- and short-term foreign currency deposit ratings; and a Ba3/NP for long-term local and foreign currency issuer ratings

"XacBank's D- BFSR reflects its growing franchise, adequate capital, and stabilizing asset quality. These strengths, however, are offset by the bank's narrowing profit margin, small scale, and the volatile operating environment in Mongolia," says Yvonne Zhang, a Moody's Vice President and Senior Analyst.

"The local currency deposit rating of Ba3 is supported by the bank's stand alone financial strength, as the local currency government bond is rated lower at B1 and the systemic support to the bank from the Mongolian government is moderate," adds Zhang.

XacBank relies heavily on interest income. As a leading bank in the microfinance sector, it has maintained a wide net interest margin. However, with the micro finance market saturating in recent years, XacBank has gradually shifted its business focus to SME lending for growth.

The profit margin is declining as a result, and will be under pressure in coming years due to increased competition in the sector. The net interest margin declined to 7.2 per cent in 2009 from 9.2 per cent a year ago. The bank's bottom line was also hit by higher credit costs and operating expenses in 2009.

The deterioration in the bank's loan quality has stabilized, and loan quality has improved so far in 2010. The bank's asset quality has been much better than the system average, even during the global financial crisis.
 

Follow the link for more news on

Pembekuan pendanaan menghantam penyedia layanan BNPL

Investor semakin sedikit mengalirkan dana ke penyedia layanan BNPL yang sudah menghadapi keuntungan margin yang tipis.

HSBC: Aliansi bank-fintech merupakan win-win

Pemberi pinjaman dapat belajar dari teknologi disruptif sambil membantu mereka mematuhi regulasi.

Tokenisasi aset perdagangan untuk menjembatani kesenjangan pembiayaan

Teknologi blockchain dapat mendesentralisasikan operasi keuangan dan mempermudah akses kredit.

BCA menjalankan komitmen terhadap keuangan berkelanjutan

Bank asal Indonesia ini mempertimbangkan aspek lingkungan dan tata kelola dalam keputusan pemberian pinjaman.

Mengapa UNOBank mendorong embedded finance tumbuh di Filipina

Bagi UNOBank, banking interface terpadu adalah strategi pertumbuhan sekaligus upaya inklusi keuangan.

OCBC mencoba mengurangi kesenjangan manfaat bagi agen properti di Singapura

Produk terbarunya menawarkan manfaat finansial di bidang perbankan, asuransi, dan perdagangan.

Upaya Malaysia menjadi anggota BRICS untuk mendorong perombakan sistem perbankan

Namun, tantangan muncul ketika menjauh dari ketergantungan pada AS dan SWIFT.

Platform pembayaran PingPong memperoleh lisensi PJP di Indonesia

PingPong mengincar ekspansi ke pasar ekspor senilai $320 miliar di negara tersebut.

Merger dan penutupan mengancam 3.800 bank di area pedesaan Cina

Sekitar 70 bank di area tersebut telah merger sejak 2023.