2013 оны жилийн тайлан

06
BANK STRATEGY
08
STAKEHOLDERS
10
BOARD OF DIRECTORS
15
CORPORATE GOVERNANCE
18
EXECUTIVE MANAGEMENT
24
ECONOMIC OVERVIEW- MACRO ECONOMICS
30
PRODUCT AND SERVICES
35
HIGHLIGHT OF 2013
39
BANKS OBJECTIVES SET FORTH FOR
THE YEAR OF 2014
40
FINANCIAL REPORT

40
RISK MANAGEMENT
44
HUMAN RESOURCE MANAGEMENT
45
SOCIAL RESPONSIBILITY
47
INTERNATIONAL INSTITUTIONS WITH
FOREIGN RELATIONS
49
BANK BRANCHES AND ATM LOCATIONS
54
AUDITED FINANCIAL STATEMENTS
CONTENTS
VISION OF CAPITAL BANK
We will be nature-friendly Green E-Bank
that supports small and medium sized enterprises.
MISSION OF CAPITAL BANK
To be the efficient bank with solid growth, potentially
providing reliable service with respect, business ethics and responsibility.
05 Capital banks ideology, values
We, Capitals:
Bank business activity shall adhere acknowledged princi ples of legal acts, ethical requirements to
maintain preferably strong and stable business ideology.
To honor the rights of our corresponding parties, abide by the princi ples of fair competition, respect
their core values, and implement the company`s social responsibility program in order to contribute
the development of Mongolia.
Shareholder, Board of Directors and executive management team shall implement the corporate
governance, proper management rule and ensure transparency and openness.
To respect rights and freedom of employee by implementing a proper human resource policy,
compound conditions to work in healthy, safe environment, and esteem opinions and desires of the
collective and individuals.
Kindly accept all esteemed customers request, and promptly as well as expediently fulfill it.
Every bank employee must work honestly for their company, and work inventively by law searching
for opportunities and get their work results appraised sincerely.
Support by a policy the trends to deliver financial services to organization and individuals who deal
with activities that do not cause negative impact to the environment and population health, as well
as propagating this idea to the public and to appeal others.
To follow the law against money laundering and terrorism financing to prevent such kind of corruption,
organized crime, drug, weapon and human trafficking, plus, not to take part in non humanitarian
activity and any illegal activities also stand out against such crimes.
To develop bank and financial services with worldwide and international standard relaying on modern
information and technology to serve our customers forthwith, in addition, to become a leading bank
in the financial sector of Mongolia with e-banking service.
CAPITAL BANKS IDEOLOGY, VALUES
Capital bank Annual report -2013 06
BANK STRATEGY
Capital bank, the first commercial
bank of Mongolia, has been
performing its operation for 24
years sustainably in a consistent and
reliable manner.
Mongolian Government pursuing the policies and
strategies regarding the manufacturing of import
substitute products and services, infrastructure
development and attracting foreign investment.
This is the main base-line for our bank to
support development of SMEs by providing
financial support.
Capital bank is one of the leading financial
institutions to deliver banking products and
services nearer to the customers, expand its
business activities, support domestic industries,
by establishing the branches in centers of 21
provinces along with strategically significant
soums.
In frame work of corporate governance, social
responsibility policy and sustainable financing
policy, we will work towards improving our
operations further by supporting SMEs, nature-
friendly manufactories. We will introduce
settlement and accounting systems relaying on
modern technology that are consistent with
international standards frequently.
To increase earnings and productivity by
managing and calculating the risks according to
relevant condition and framework, our bank is
setting aim to reach the highest possible return
and planning to have a sustainable, reliable
growth of assets by 30-50% each year. As a
result, total asset shall reach 4 trillion MNT by
2017.
The bank supports the financing of nature-
friendly SMEs with certain market positions
operating in the fields of production in
agricultural, mining and infrastructure sectors
that produce export and import-substitute
products. SMEs play an important role in the
development of the country. Therefore, the
bank concentrates on supporting the average
income individuals and entities, offer them
flexible loan condition and introduce and serve
with financial services that meet their needs.
07 Bank strategy
By increasing customers trust and confidence on
our bank, we will work to improve their financial
knowledge by being financial advisor, friend. We
will offer them attractive condition and help
our clients build their own long term capital
accumulation. Thus deposits allocated from
customers and funds from projects shall reach
approximately 2,9 trillion MNT.
In accordance with our objective of becoming
electronic bank, we will provide our customers
with opportunities to get all kinds of products
and services regardless of location and time.
Nowadays all banking operations are based on
IT system, products and service of the bank
is becoming more electronic .Therefore the
princi ple of software service being reliable and
meeting the requirements of confidentiality is
obliged. We have concluded the agreement
with International Auditing Firm to get an advice
about advanced IT activities and to have an
auditing for Information and Technology Security.
We emphasize our human resource issues which
is considered to be the most valuable thing of
our bank, and will work to solve their social
issues. In order to serve our rapidly growing
customer base, we are planning to improve our
employees abilities and their service quality by
providing with persistent training sessions and
constitute our human resource with qualified
stuff by providing with opportunities for self-
improvement by all means.
Capital bank Annual report -2013 08
The main stakeholder of the bank is Bishrelt Group LLC, one of the Mongolian
largest group operating 14 subsidiary companies with 1700 employees and
active operation in business sectors including banking and finance, investment,
securities, real state, trade and service, manufacture, health, construction and
lane, infrastructure division..
STAKEHOLDERS
To be the company that contributes in Mongolian development, noticeably efficient to Mongolian nations, fruitful
to our shareholders, to be the strongest competitor and the best partner of leading corporations of Asia Pacific
countries. This is Bishrelt Groups main ambition and aspiration for the future mission. They havereached todays
place by defining our new ideas to implement our dream as our mission, by announcing the method to fulfill our
mission as our slogan and by working honestly and actively.
Further to fulfill the vision with the best management solution to control the speed of economic development,
connection of theory and practice, activation of creative ideas.
Groups vision:
09 Stakeholders
Mission:
To honor the consumers, to introduce a new service and product that fulfill the customers satisfaction, and to
contribute the development of Mongolian economy and social treasury by enterprising a promising manufactory
based on intellectual advanced technology.
The company keeping pace with the global information era by using the administrative management in production
and service, giving accelerated and quality service, preferring the knowledge-based environment of transparency,
paying special attention to the development of companys infrastructure and information technology, using the
worldwide brand technologies and software in our activities.
Bishrelt Group LLC joined to the United Nation`s Global Compact in 2004 and has started to work in compliance
with its pre-figurative visions, informing them to public.
As a result of its business achievements and contribution of tax payments in state budget in 2004, 2005, 2006,
2008, 2010, 2011, 2012 and 2013 Bishrelt Group LLC has awarded by honorary title Best Entity of Mongolia issued
by Government of Mongolia and Mongolian Chamber of Commerce, in 2007 awarded by title Best of the Best
entities of Mongolia, in 2013 awarded by title CACCI Golden awardcup of Asia and Pacific region best entities,
and listed as an one of TOP- 100 entities of Mongolia for last 10 years which demonstrate its stable effort as being
one of best entities of Mongolia.
10 Capital bank Annual report -2013
GREETING FROM THE CHAIRMAN OF
BOARD OF DIRECTORS
First and foremost, at this time of performance review
of 2013 of our bank, I would like to express my sincere
gratitude and greetings to our esteemed customers,
deposit holders, international and domestic partners
and colleagues for the continuous support and
cooperation. And I wish great success on your future
creative work on behalf of the Board of directors and
its members. I believe that we can accomplish our
objectives and goals on business plan and expand our
efficient collaboration in coming year 2014.
The goal for the year 2013 was to Promote and
support the development of customer service and
branches. As a result of our community directing
their efforts and implementing certain organizational
measures, we were able to expand the scope of
banking activities, actively engage in a number of
projects within the framework of social responsibility
programs, to make certain steps towards our vision
of becoming the electronic bank. The meeting of the
Board of directors have commended on experiencing
a higher growth rate of the key indicators compared to
the previous year as a result of successful collaboration
with our customers, clients, business partners. We
are convinced that you will be satisfied to see the
banks 2013 annual report basic indicators of our basic
performance result.
Being awarded first time as Top 5 banks according
to 2013 basic performance measures, Top 10 banks
implementing social responsibility 2nd time was a large
assessment from our government, public instituitions
and customers that the banks community has worked
efficiently.
Thus, our banks success, marched together with social
development and successfully accomplished the goal
set by, attained a progress, are a direct expression of
our joint efforts.
11 Board of directors
Last year, the banks paid-up capital reached 33
billion MNT, increased by 11 billion MNT. It resulted
in marked improvements such as an improvement in
the banks bearing capacity of risk, payment capability.
During the year, we introduced highly innovative works
and introduced new equi pment, advanced technology,
implemented certain corporate governance princi ples
and worked to ensure the transparency of the
activities. As nowadays all over the world highly
paying attention to corporate governance and are
concerned about the best methods of governance,
the board of directors are supportive of introducing
the appropriate measures of it. We have made an
agreement with International Financial Corporation
to work jointly to improve corporate governance,
reduce risk, maintain profitability and attract new
investments. In accordance with the suggestions and
recommendations from the foresaid corporation, our
bank has started to implement appropriate additional
changes on regulations related to the activities of
Board of directors and on a few other rules and
regulations applicable to banking activities, which was
an important contribution to our goal of becoming
Leading bank on corporate governance
CHAIRMAN OF BOARD OF DIRECTORS
T.BATBAYAR
Being the first private commercial bank with national
investment and in accordance with the long-term goal
of Being supportive of small and medium businesses,
environmentally friendly electronic bank , respecting
the mission of Becoming the bank with responsible,
reliable and sustainable banking activities that promote
business ethics, I urge our esteemed shareholders,
customers, deposit holders and all the staff of our bank
to successfully implement the proposed goal for 2014,
Becoming the leading bank on corporate governance
and improving the human resource ability.
BOARD MEMBERS OF
CAPITAL BANK
BATBAYAR TUGUU
Chairman of Board of director
Education:
1957-1961 Loan inspector, accountant at
Finance technical school
1965-1969 Bachelors Degree in Finance-
Economics at National business
university of Soviet Union
1975-1977 Bachelors Degree in Politics at
National academy of Soviet Union
1992-1994 PhD in Economics at
Correspondence-Aspirant
Economist, with banking and financial experience for more
than 50 years

Professional Experience:
1961-1964 Senior Loan Assessor at Dundgobi
department of the
National Bank of Mongolia,
1964-1965 Loan Assessor at the
National bank of Mongolia,
1969-1972 Senior Loan Officer of
National Bank,
1972-1975 Department Director of
National Bank,
1977-1979 Economic Advisor of National Bank,
1979-1981 Deputy Chairman of National Bank
1981-1990 1st Deputy Chairman,
1990-1991 Head of International
Bank of Moscow
1991-1995 Deputy Director of International
Bank of Moscow
1995-2001 Head of International Bank of
Moscow
2001-2002 Advisor of International
Bank of Moscow
2002-2006 Advisor of Capital bank
Since 2006 Chairman of BOD of Capital bank
Honored professor of Natural economics and legal state
university of Russian federation, PhD of Economic sciences,
Honored economist of Mongolia
UNDARMAA BATBAYAR
Member of the Board of directors
Education:
1972-1982 Secondary education at 24th
secondary school of the capital
1982-1983 Language training in Irkutsk
1983-1988 Bachelors Degree in Engineering-
Economist and Management
of Construction and Town
Planning at School of
Management in Moscow, Russia
1998-2000 Masters in Economy at National
University of Mongolia
2008 PhD in Economy at
European Information
Academy in Russia
Urban development and construction engineer-
economist, Profession of Management and organiza-
tion
1988-1990 Research specialist at Automatic
control center of Management
development institute
1990-1994 Research specialist at International
Research institute of Management
development institute
1995-2003 CEO of Bishrelt Holding
Since 2008 Head of Family development NGO
Since 2011 President of Bishrelt Group
2012/1-2012/12 Deputy minister of Educaton,
science ministry
Since 2013 Member of BOD of Capital bank
Was awarded with best employee of Finance and
banking, master and doctorate degree of Economic
sciences
13 Board members of Capital bank
GOOKHUU SHARAV
Independent member of the Board of
directors
Education:
1953-1960 Secondary education at
Secondary school of
Tugrumsoum
1960-1964 Bachelors Degree in
Accounting at Institute of
Finance and Economics,
1969-1973 Masters in Finance and Credit
Economics in Irkutsk city,
Russian Federation
1964-1968 Deputy chief accountant of
Govi-Altai bank
1973-1978 Chief economist and Head of
Govi-Altai bank
1981-1990 Referent of Peoples republic
of Mongolia
1990/06-1990/11 Deputy Minister of the
Ministry of culture
1990/12-1991/12 Vice chairman of Culture and
arts development committee
1992-1996 CEO of Mongolian
Insurance Bank
1997-2004 Advisory at Export and
Import bank
Since 2007 Head of the department of
San economics institute
Since 2010 Independent member of the
BOD of Capital bank
Head of the department of San economics
institute, lecturer
Adjunct professor of Economic sciences
Best employee of Finance and banking
Polar star medal
Was awarded with caregiver for youth and other
awards.
NORJINLKHAM BALJINNYAM
Member of the board of directors
Education
1962-1966 Finance and economics at
Economics institute
Finance and economist

Professional experience
1966-1979 Economist, senior economist,
department director of
Ministry of Finance
1979-1988 Instructor, senior instructor
at Peoples revolutionary
Party of Mongolia,
1988-1990 Deputy minister of Public
utility services
1990-1993 Vice director of reconciliation
and corporation of
Public utility service
1993-2006 Vice director at National
tax agency
2006-2008 Advisor at Association of
Mongolian Taxpayers
2008-2009 General manager of Citiko-
Audit LLC
Since 2009 Chairman of Veterans
committee of General tax office
Was awarded with Honored medal of Labor, Polar
star medal and other awards
SUKHEE MAJAA
Independent member of the Board of
directors
Education
1957-1961 College graduate of Finance and
economics science
1964-1969 National university of Mongolia
Has a profession of
Finance and economist
1961-1964 Chief inspector, Head of
department of tha bank of
Selengeaimag
1964-1971 Economist at Ulaanbaatar
city bank
Office director of the bank of Uvurkhangaiaimag
1978-1991 Head of inspection department of
general committee of National
bank
1991-1992 Head of information research
department of Mongolbank
1992-1996 Vice president of National bank
1996-2006 General director of Battugrug
Nonbank financial institution
Was awarded with Honored medal of Labor, Best
employee of Finance and banking
Best employee of agriculture and other anniversary
medals
DORJGOTOV TSEGMID
Member of the Board of directors
Education
1968-1972 Lawyer at General institute of
Military

1972-1976 Representative, Senior
representative at Police Force
Division of Ulaanbaatar
1976-1980 Senior inspector at the
Ministry of Public security staff
1980-1982 Vice director at the
Ministry of Public security staff
1982-1985 Department Director at Police
Force division of Ulaanbaatar
1985-1990 Department director of
workforce of the General
police department
1990-1993 Head of department at Civil
registration and information center
Since 1993 Chief administrative officer at
TahiCo company
Was awarded with Military merit medal, Polar star
medal and other awards and anniversary medals
15 Corporate governance
Corporate governance is the provision
with purpose of maintaining adequate
levels of coordination of activities among
the shareholders, board of directors,
executive management of the company
and other partici pants. It ensures the
financial credentials of the companys
business. Thus, our bank has significantly
emphasized the issues regarding the
implementation of appropriate corporate
governance in recent years.
CORPORATE GOVERNANCE
In 2013 we have signed the agreement to work
cooperatively with the World banks member
institution International finance corporation in
the fields of improving Corporate governance.
Since then, rating on the corporate governance
has been completed, and our company received
specific recommendations to improve the
corporate governance further. Accordingly,
we examined and concluded the corporate
governance and our approach to it, improved
our current regulations and guidelines and
changed them in accordance with international
practices.
There are many advantages from implementation
of appropriate corporate governance
princi ples in the bank such as providing with
the banks sustainable development, intensify
the implementation of our mission and vision,
business plan, still more, support the foreign
and domestic investment and contribute to the
national economic growth, create environment
and conditions bound to confidence of our
customers and deposit holders and develop
together and increase the amount of wealth.
Ensuring transparency is one of the most
important princi ples of corporate governance.
Hence, we believe that it is an important factor
that increases confidence of our customers
and partici pants of the bank. Thus, we publish
the audited annual, quarter financial reports
with relevant comments in daily publications.
In addition, we inform at the banks website
and publish the information regarding the
banks mission, vision, values, business policies,
regulations on ethical standards, shareholders,
the information about professional skills and
work experience of Chairman and members of
the Board of directors, executive management,
and information relevant to related parties work
and transactions (loans, issued guarantees and
letters of credit to related parties), information
about risk that might affect financial stability,
information regarding the management and
organizational scheme, branches, units and the
management committees with annual report
respectively.
Compliance department was established in
order to monitor and conform the compliance
of regulations and guidelines applicable to the
bank to related laws and regulations
Structure and Functions of the Board of
Directors
Board of directors plays an important role
in implementing the princi ples of corporate
governance. The board of directors was
established independently of executive
management with 7 members who are guided
by the provisions of related Banking acts and
laws, and the members can avoid political and
other interests, can make independent decisions.
2 of them fully meet the requirements of
independent members as referred to the Article
33 of Banking act and are experienced and
skilled members in the fields of controlling and
monitoring banking functions.
Committees of BOD
The primary responsibilities of the audit
committee are to strengthen the appropriate
systems of banks financial reporting and
internal control, to provide with transparency
of information, to ensure the independence
and of internal and external audits, to
monitor the implementation of audit activities
and evaluate it accordingly. Composition of
the committee is as follows:
Director: Sh. Gookhuu independent
member of BOD
Members: B. Nasanbayar- Teacher at Trade
and commerce university
N.Chogjilsuren- Senior officer of the bank
Integrated risk management committee- the
primary responsibilities are to evaluate the
efficiency of the risk management system,
determine the potential risks that bank may
face such as credit, market operational and
law enforcement risks, confirm the approved
levels of the limits, to decrease the impacts of
potential risks. Composition of the committee
is as follows:
Director: M.Sukhee- Member of BOD
Members: B.Norjinlkham- Member of BOD
M.Oyuntuya- Obligation performer of the
Director of Integrated risk management
committee.
The remuneration and nomination
committee- The primary responsibilities of
the committee are to Select and nominate
the competent BOD members and executive
management in order to sustain the business
development of the bank and increase
economic efficiency, implement sound
remuneration policy in order to retain them
Director: Ts. Dorjgotov- independent
member of BOD
Members: B. Undarmaa Member of BOD
B. Norjinlkham Member of BOD
17
RISK GOVERNANCE AND INTERNAL
AUDITING SYSTEM
In accordance with the international best practices
of corporate governance, risk management office
is established in 2008 independently of which BOD
monitors the operations. It works to amend and
improve the policies and procedures to improve the
banks risk governance policies, introduce modern
practices to assess and detect risk, raise awareness of
risk management importance to total staff .
In 2013, started introducing and launching the
internationally recognized information management
program ClickView. And is accustoming to the
mainstream activities and operations the following 5
adequate internal control system with interrelated
elements :
Develop culture of management control and
monitoring and surveillance
Separate the functions of and activities of control
Detect/identify risk and evaluate
Improve information data communications
Correct the drawbacks of monitoring activities
The internal audit department of the bank takes
detailed examinations on activities of all the branches
and units, gives evaluation and directions, and BOD
discusses the examination results and gives advice
which improves the inspection effectiveness.
EXTERNAL AUDIT
In 2012, 2013 our bank annual financial reports
has been audited by international auditing
company Ernst and Young (E&Y). It served as a
big step towards its governance, transparency and
accountability to shareholders.
INFORMATION TECHNOLOGY
GOVERNANCE MONITORING AND
SURVEILLANCE
In 2013, our bank first introduced the IT governance
monitoring and surveillance system Cobit 4.1 to
the operations. Although Mongolian enterprises
havent yet introduced the Cobit system to their
operations, our bank has reflected it to the business
plan in order to fully introduce this system to our
operations pursuant to the mission of Being nature-
friendly Green E-Bank that supports small and
medium sized enterprises . Cobit system twists and
connects the objectives and functions of information,
information technology to the regulatory
governance.
The reliability of bank for its clients, investors and
savings account holders is one of the most important
factors of appropriate banking governance. Capital
bank is organizing the council of bank clients,
receiving their opinions at the boxes in the peri pheral
bank branch offices and listening to their opinions
by telephone-1912. Also, during the internal audit
department inspections at the bank branch offices,
we are taking appropriate measures along with the
opinions of our customers. We have developed
procedures and guidelines of service personnel
regulations on how to handle customers. Also, we
have developed TOP customer procedures and
other relevant instructions and regulations separately.
Since 2013, our staff has followed the
appropriate corporate governance princi ples.
As a consequence, the number of customers
and deposit balances have increased
significantly while other key indicators have
progressed than the previous years.
The entities and organizations are considered to be
the base of our countrys economic development.
As the first commercial bank of Mongolia, we are
aiming towards becoming an example institution that
implements the corporate governance princi ples
to the operations so that other entities and
organizations become socially responsible economic
contributors.
Corporate governance
GREETINGS FROM CEO
Organizations and entities are
considered to be the backbone of
Mongolian economic development.
Thus, as the first commercialbank,
aimingto act as a role model them in
the fields of implementing corporate
governance princi ples to their
activities and have a sense of social
responsibility.
Dear shareholders, customers and business partners,
First of all I would like to thank you for your valuable
time for reading our report. Last year, our countrys
economic growth reached 11,7%. Although it was a
bit lower compared to previous year, our country
is included in the list of the worlds fastest growing
countries. As for our bank, we have taken sequential
measures on improving our corporate governance and
expanded the business scope. Total assets reached
654 billion MNT, total liabilities reached 613 billion
MNT, and paid-up capital was increased by 11 billion,
which reached 33 billion MNT so far. This was the
confirmation that our bank executed its responsibilities
to the customers successfully.
The main indicators of the bank, growth of assets and
liabilities, were increasing continuously in the last 5
years, and last year, our bank growth rate was the
highest among commercial banks.
We collaboratively worked to support SMEs
in accordance with the projects of Mongolian
government, non-governmental organizations and
international organizations in the framework of the
missions of social responsibility policies, operational
strategies.
In the framework of implementing our purpose of
becoming national-range bank, we opened 6 new
units and branches in Ulaanbaatar and rural provinces,
installed 22 ATMs and about 100 POS machines, thus,
bringing our services and products nearer to our
customers. Moreover, we became the 2nd commercial
bank to introduce tri ple currency UnionPay card to
the Mongolian market. Also, we successfully introduced
the smartphone application of the bank My bank.
Corporate governance is an important indicator of
the degree of activities that organization implements.
If administered properly, we believe one can increase
the confidence of the shareholders and customers,
can provide proper allocation of efficient control
A.ARIUNBOLD, CEO
systems, management, authority and income, thus
ensuring economic growth. Therefore we attach great
importance to our banks proper governance and last
year in the framework of improving bank governance,
we signed a contract to cooperatively work with IFC,
the World Banks member organization, and were
implementing step-by-step operations to reach
international level of corporate governance since then.
In the framework of the missions of social
responsibility policies, operational strategies, we
collaboratively worked with Mongolian government,
non-governmental organizations and international
organizations. We have implement more than 10
concessional projects to support SMEs. Also, in order
to support the entities and individuals who lack
collateral, guarantees, we collaboratively worked with
Credit guarantee fund and issued 250 million MNT
loans with guarantees, which was the first time ever
in Mongolia.
As a social responsibility implementer organization, we
organized Warm heart blood donation campaign as
our tradition, World savings day event, Unagaldai
childrens savings day and other social measures for
the gratification of society and our contribution was
evaluated adequately by the public.
Amongst them, Capital bank has been supporting the
development of sports impacting positively on health
and formation of children and youth. Bank has been
sponsoring successful partici pation of Capital bank
team at Sprite National basketball league.
In order to benefit our employees regarding social issues
and improve their working motivation, Capital bank
affords employees with grants, subsidies, incentives and
loans with discounted terms. In addition, in purpose
of improving employees education and knowledge,
we have organized many bank internal training
sessions, rehabilitated the employees to external and
international training sessions and conferences.
At the end of the year, we have organized Customers
new year evening, the traditionally held ceremony of
selecting significant customers that over 300 active
customers and partners partici pated. During the
ceremony, we had open discussion with our customers
and partners. Afterwards, we analyzed, summarized
the scores and errors of operations during the year,
discussed further cooperation and expressed our
gratitude.
Weve been often having meeting with our major
customers and business associates in person to have
a friendly discussion regarding their business activities,
confronting issues. Also, the executive management
team members often visits the branches and units in
Ulaanbaatar and other remote rural areas periodically
to get acquainted with their operations in place and
listen to their needs and provide with advice.
I would like to thank our banks staff for their caring,
hard work, our BOD, Shareholders, Customers and
Partners for their confidence and trust in us.
Furthermore, I would like to recommit that we
will work, in accordance with our mission of being
green e-bank supportive to the SMEs, to hold our
customers interests as prominent and to strengthen
our transparency.
Sincerely yours,
Executive management
ORGANIZATIONAL STRUCTURE OF THE BANK
Treasury Management
Office
Development strategy, Human
Resource, Promotion Committee
Risk Management Committee
Financial Management
Division
Information and
Technology Division
Business Development
Division
Compliance and
Legal Department
Main System Office
Media and Public
Relation Office
Legal Office
Branches in Ulaanbaatar and rural area
Accounting Office Technical Service Office
Branch Management
Office
Implementation
Office
Loan documentaion
Office
Network and Security
Office
Maintenance Office
Loan Committee Risk Management Committee
Information and Technology Sub-Committee Loan Sub-Committee
21
Shareholders meeting
Board of Directors Audit Committee
Internal Audit Committee
Auditing Department
On-shore Audit Office
Off-shore Audit Office
Deputy CEO
CEO
Management Committee
General Coordinating
Division
Foreign Relationshi p
and Project,
Investment Division
Risk Management
Division
Loan Division
Card Center
Foreign Relationshi p
and Correspondent
banks
Branches in Ulaanbaatar and rural area
Loan Risk
Management Offcie
Loan Office
Project and
Investment Office
Operational Risk
Management Office
Reporting and
monitpring Office
Human Resource and
Training Office
Security, safety
Office
Archives and
Documantation Office
Market Risk
Management Office
Anti-Money
Laundering Office
Special Assets Office
Organizational structure of the bank
EXECUTIVE MANAGEMENT TEAM
GERELMAA
AGVAANJAMBA
Deputy CEO, Director
of Foreign Relationshi p
and Project Investment
Division
Translator and economist
Has 13 years experience
in banking and financial
sector
Best worker of financial
and banking sector of
Mongolia
DELGERTSETSEG
SODNOMTSEREN
Director of Loan
Division
Economist and
accountant
sector
BAASANBYAMBA
PAGVAJAMBAL
Director of General
Management Division
Economist of taxation
sector
Master of business
administration
Best worker of education
sector
GANBAATAR
BAASANDORJ
Director of Business
Development Division
Bank economist
Has 15 years experience in
banking and financial sector
Master of business
administration
Best worker of financial and
banking sector of Mongolia
YANJIN
BADARCH
Director of Financial
Management Division
Bank accountant and
economist
sector
Best worker of financial
and banking sector of
Mongolia, Polar Star
medal
23
YAGMARSUREN
CHOYONDORJ
Director of complains
Division
Business management
economist
sector
Top worker of banking
and finance
Executive management
DAVAADALAI
DARJAA
Head of Card Center
Information and
electronics engineer
sector
OYUNTUYA
MUNKHBAATAR
Director of Risk
Management Division
Economist
sector
BATSUKH
GANBAATAR
Director of Audit
Division
Economist and
accountant
Has 10 years
experience in banking
and financial sector
Professional auditor
CHULUUN-ERDENE
ERDENETSOGT
Director of information
Technology Division
System Analyst
Programmer
Has 7 years experience in
banking and financial sector
ECONOMIC OVERVIEW-
MACRO ECONOMICS
25 Economic overview - Macro economics
26
GROSS DOMESTIC PRODUCT
27
INFLATION OUTLOOK
27
MONEY INDICATOR OUTLOOK
28
BANKING AND FINANCE
FRAMEWORK OF MONGOLIA IN 2013
GROSS DOMESTIC PRODUCT:
Excluding the fact that Mongolian economy dropped by 1.3% due to global financial and economic crisis in 2009, it
was growing by 10.6% average since 2006. In 2011, it grew by 17,6%, in 2012 by 12,4% while it grew by 12,4% in 2013.
The growth was due to the Mongolbank policies impleneted and mining sector growth effected by Oyu-Tolgoi
production.
Final consumption occupies 62,3%, gross capital formation occupies 58,6%, net export occupies (-20.9%) of
preliminary implemention of 2013 GDP which was the fell in final consumption by 1.9 percentage points, in gross
capital formation by 2,8 percentage points and the growth in net exports by 4.7 percentage points from the
previous year-end.
Growth of GDP / percent/
The national consumer price index, in groups, percent
2013 XII/2012 XII /percent/ 2013 XII/2013 XI /percent/
General index 112.5 101.3
Food, beverage, water 113.3 102.1
Alcohol, cigarettes 113.4 102.1
Clothing, textile, shoes 117.6 102.2
Housing, water, electricity fuel 107.8 100.6
Houshold goods and furniture 118.2 101.6
Medicine vaccination, medical services 113.2 101.0
Transportation 103.0 100.0
Communication devices, postservices 99.7 100.0
Recreation, leisure and cultural goods, services 100.3 100.0
Educations services 127.2 100.0
Hotel, restaurants and dormitory services 117.8 100.1
Other products and services 117.2 101.1
2012 I-III 2013 I-III 2012 I-IV 2013 I-IV 2012 I-IX 2013 I-IX 2012 I-XII 2013 I-XII
15,9
13,1
11,8
12,4
7,1
11,3
11,5
11,7
18
16
14
12
10
8
6
4
2
0
27
Inflation rate / percent/
INFLATION OUTLOOK:
By the end of December 2013, consumer price index (CPI) grew by 1,3% compared to the previous month and
by 12.5% compared to the previous year-end. Average annual inflation rate is 10.5%.
The overall index as of December 2013 compared to the previous year-end grew by 12,5% which was due to the
educational services, household goods and furniture, clothing, footwear and so other groups.
MONEY INDICATORS OUTLOOK:
Money supply (m2) reached 9541 billion as of December 2013 due to the supplied tugrugs to the economy from
Mongolbank, loans for price stabilization projects of main commodity products , expenditures of Chinggis (Genghis)
bond, which was an increase of 1833,4 billion or 24,1 % compared to the previous year.
Some fundamental money indicators, and of the year, billion MNT
Indicator 2012 XII 2013 XI 2013 XII 2013 XII/2013 XI /percent/
oney supply M2 7617.3 9108.7 9451.0 103.8
Total savings 4922.7 6049.6 6393.4 105.7
MNT savings 3488.0 4639.1 4917.2 106.0
Currency savings 1434.7 1410.5 1476.2 104.7
Loans outstanding 6990.5 10822.4 10769.3 99.5
Non-performing loans 110.6 161.1 118.2 73.4
Overdue loans 295.1 572.5 566.0 98.9
Share of Non-performing loans in loans outstanding 1.6 1.5 1.1 73.3
Share of overdue loans in loans outstanding 4.2 5.3 5.3 100.0
Cash in circulation reached 841.1 billion, which is an increase of 1,5% compared to the previous year.
2012 I-III 2013 I-III 2012 I-IV 2013 I-IV 2012 I-IX 2013 I-IX 2012 I-XII 2013 I-XII
14
12
10
8
6
4
2
0
Economic overview - Macro economics
FINANCIAL ENVIRONMENT OF MONGOLIA IN 2013.
Total loans outstanding.
Total loans outstanding of the banking system reached 10,8 trillion MNT by the end of 2013 which is an increase of
3,8 trillion or 54,8% compared to the same period of 2012. Loans to private sector increased by 42,6%, loans granted
to citizens increased by 45% respectively compared to 2012. Loans to private sector constitutes 50% while loans to
citizens constitutes 42,1% of the total loan outstanding.
As of 2013, the total outstanding non-performing loans grew by 1 percentage points and reached to 5,23% compared
to the previous year.
Loans balances outstanding, million MNT. /2009.01-2013.12/
Share of non-performing loans in total loans.
Share of non-performing loans in total loans.
2009.01 2013.12 2010 2011 2012
12 000 000.00
10 000 000.00
8 000 000.00
6 000 000.00
4 000 000.00
2 000 000.00
0
2009.01 2013.11 2010 2011 2012
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
29
Total assets
During the reporting period, total assets of the banking sector increased by 74% compared to the previous year and
reached to 20,9 trillion which was a higher growth than 2012s 28%. Banking sector loan balance reached 10,7 trillion,
which is 54% higher than the previous year.

Current and savings accounts balances
As for the deposits of the sector, total current account balances outstanding reached 2,5 trillion which is 18% higher
than the previous year while deposit balances outstanding reached 6,4 trillion which is 30% higher compared to the
previous year.

Total assets /million MNT/
Current and savings accounts balances, million MNT /2010.01-2013.12/
2009.01 2013.11 2010 2011 2012
25000000
20000000
15000000
10000000
5000000
0
2010.01.01 2013.11.01 2011 2012
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Savings account balance
/million MNT/
Current account balance
/million MNT/
Economic overview - Macro economics
PRODUCTS AND SERVICES
31 Product and services
32
CURRENT AND SAVINGS ACCOUNTS
33
LOAN PRODUCTS
33
PAYMENT CARDS
34
FOREIGN SETTLEMENT SERVICES
34
ELECTRONIC BANKING
In 2013, Capital bank introduced the following
new services and products in accordance with
the customers demand and needs:
Successfully introduced the Smart bank
application My bank used for smart phones
such as Android, blackberry and iPhone.
Became the 2nd commercial bank to
introduce the tri ple currency card UnionPay
in Mongolian market. UnionPay cards can
be amounted with 3 currencies: RMB, U.S.
Dollar, MNT and payments can be made in
any countries all over the world.
Introduced the Merchant Pos service to
its operations, installed in more than 100
organizations that provide service and
expanded its range of electronic services
delivered to the customers.
One-time password system- One-time
password system is designed to create
additional one-time password in order to
reduce risk and increase privacy and safety of
e-banking.
One-time password (OTP) is used only
once and expires afterwards (cant be re-
used). Customers dont have to buy separate
devices (Vasco) when connecting to the
system and it is a secure and reliable system.
Customer uses the password only once
whenever accessing and making transaction
when gets OTP and enter a new password
again when accessing and making transaction
next time.
CURRENT AND SAVINGS
ACCOUNTS
During the year, number of current and
savings account holders has increased by
15% and reached 319474. Total deposits
outstanding reached 225 billion which
is 50% increase from previous year.
We offer our clients following types of
current and savings accounts with flexible
terms and conditions.
- Prepaid interest savings account
- Unagaldai childrens savings account
- Capital students savings account
- Floating rate savings account
- Certificate of deposit
33
LOAN
Capital bank supports SMEs with its lending
policy. During 2013, total of 287.3 billion MNT
loans were granted to approximately 27
thousand creditors. Thus total loan portfolio
reached to 311.6 billion MNT which is 57.7%
increase compared to previous year. In 2013,
the bank actively supported the programs and
projects implemented by the government.
Total of 95 billion MNT project loan portfolio
was comprised, 70% of which was accounted
for the loans to support SMEs that produce
import substitute and export products.
We offer the following loans:
- SME loans, business loans
- Construction financing loan
- Equi pment leasing loan
- Credit line loan
- Gold secured loan
- Consumer loan
- Instant loan
- Pension secured loan
- Salary secured loan
- Savings account secured loan
- Education support loan
- Mortgage loan
- Agricultural loan
- Housing loan
- Loan for Completion of apartment
construction
- Loan for completion of Fence and house
construction
- Car loan
- Leasing loan
- UBIBOR loan product
PAYMENT CARDS
Became the 2
nd
commercial bank to
introduce tri ple currency payment card
UNIONPAY to Mongolian market. Unionpay
card may have 3 currency account- RMB,
MNT, USD. The payments and settlements
can be made in any country of the world.
In the framework of becoming National-
level electronic bank, we have introduced
best non-cash payment solutions. Total
number of ATMs reached 31, total number of
merchant organizations to 100.
We serve our customers with following types
of card products:
International cards:
- EMV chi p card with international
entitlement
- UnionPay card
Domestic entitled cards:
- Visa card
- National T brand card /gold,
ordinary, salary, savings/
Product and services
FOREIGN SETTLEMENT SERVICES
our customers with opportunities to make
RMB remittances with cheapest fees in a
fastest way.
- Sigue
- Swift
- Moneygram
INTERNET BANKING SERVICES
We offer our customers with access to our
bank services from wherever, whenever they
want through mobile phones and internet.
Through our Internet bank and My
bank services, customers can check their
account balances, get statements. Also,
customers can make non-cash transactions,
interbank transactions, foreign transactions
and make domestic remittances. In addition,
information such as exchange rates, locations
of branches are available.
OTHER SERVICES
FOREIGN TRADE/EXCHANGE
- Currency exchange /FX/
- Capitalbankfx margin trading
Escrow account: It is a service for the
financial payment of the parties in trade and
prevent from risks which may arise due to
the financial payment issues
- Account reference service
- VIP room service
35
Acted as a general sponsor for Development
and protection-policy reform of people with
disabilities national conference and its welcoming
one-month campaign held organized by Ministry of
Human development Social Security, Rehabiliation
and development center in April and May of 2013.
The conference and the campaign contributed
significantly to solving the problems regarding
partici pation of the disabled in social affairs, creating
positive attitude towards them, improving their
employment and income.
May
In order to support small and medium enterprises
and increase credit rights of customers, Capital bank
signed a contract with Credit Guarantee Fund on
6th May 2013.
In order to improve Corporate governance, signed
a contract with International Financial corporation, a
member of World Bank on 16th of May. Started the
sequential operations to further reach the banking
governance to international level.
June
Opened new branch in Central Mail located in
Chingeltei district on 17th June 2013.
Started granting 8% Mortgage loans
Organized Unagaldais one day for children in co-
operation with Association of Mongolian students,
C1 television and partici pated about 1000 children
with their parents. Presented gifts to each of the
children who partici pated the campaign and traveled
to a variety of interesting stations and watched
performances, held part in fun competitions.
About 40 children who actively partici pated the
tournaments from stations were awarded with
Unagaldai savings book, with vouchers for Leader
training for lecturing and communication organized
from Association of Mongolian students, with
voucher for opening Student card.
Capital bank, in cooperation with Credit guarantee
fund, successfully attended the international
exhibition Products, services and technology of
SMEs-2013 organized by MNCCI the 17th time
at Misheel Expo center on 6-11 July 2013. The
exhibition was a timely and important action of
solving the issues such as getting working capital
January
Opened branch in Sainshand city of Dornogoviaimag,
started to provide banking and financial services fast
and reliably to the provincial community
New settlement service center was opened in
Khan-Uul district and started serving the customers.
Opened the possibilities of SSL (Secure Socket layer)
and adjusted to the system in order to provide user
data security and build confidence of customers
February
Opened new branch in Bayanzurkh district, the
largest district in Ulaanbaatar, on 18th of February
and brought the services and products of the bank
one step closer to the customers and community
March
Successfully introduced a My bank smart bank
application available for smartphones such as
Android, Blackberry, iPhone.
Successfully introduced Merchant Pos services to the
operations and installed in approximately 100 service
providers, which contributed to the expansion of a
range of delivery of services to the customers.
Organized reserve center operations that satisfies
international standards
April
Organized ceremony of selecting
Top 150 entities of 2012 in
cooperation with Mongolian
government and MNCCI. Our
bank was selected as one of the
Top 150 entities that indicates the
contribution of private sector to our
countrys economy and business development, was
selected as one of the Top 5 Banks first time,
received 4th place at Top 10 social responsibility
implementer companies.
Established Correspondent relations with
Commonwealth bank of Australia thus expanding its
international relations.
HIGHLIGHTS OF 2013
Highlights of 2013
loans, finding necessary equi pments that most SME
entrepreneurs face. Many entities that took Capital
banks financial support who started from household
production and expanded into national industries also
attended this exhibition.
July
Created Electronic database of Employees
information and entered the information of
employees in purpose of creating many advantages
to the new employees and give them direction such
as getting promptly acquainted with the colleagues,
employees of other departments and improve the
employee relationshi ps and so on.
In co-operation with Duunyurguu non-
governmental organization, worked as a general
sponsor of Zurkhniiholboo project organized
for the purpose of presenting the longing-for each
other, dreaming and longing for homeland, blood-
relatives and precious lovers from distance countries,
heartful meetings to the audience. 5 individuals who
were selected as the winner of Zurhniiholboo
project were awarded with golden opportunity to
visit Korea and went through all kinds of analysis and
comprehensive medical examination for free. And
within the project, partici pants took vacation at
Naranbulag vacation-resort center, attended yoga
meditation and health classes.
August
Opened new branch in Hanbogd Sum of
Umnugoviaimag on 26th August 2013
Became the 2nd commercial bank to introduce tri ple
currency UnionPay card to the market. Unionpay
cards can be denominated in 3 currencies: RMB,
MNT, U.S. Dollar and transactions can be made in
any countries all over the world.
September
Electronic banking services are high quality privacy
and protection information technology system that
customers can access at any time, anywhere and
get all of the banking services. Introduced the OTP
(one time password) Generator system to our
electronic banking services in order to protect the
cash properties and security.
Partici pated as a gold sponsor for Association of
Asian banks 30th conference first international
meeting held in Ulaanbaatar. Representatives of
organizations of regional and continental banking and
finance sectors took part in the meeting, dealing with
issues.
October
Opened new Unagaldai childrens savings accounts
to the new-born children at 2nd maternity center
of Sukhbaatar district with cash balance to start their
future savings on Global Depositary/savings day.
Presented gifts to the mothers embracing happinss
nestling their new-born babies and the doctors
with golden hands and wished success to their work.
Moreover, Capital bank staff presented gifts to our
customers opening up new accounts and awarded
with Unangaldai savings to our employees who got
new-born babies in 2013.
Started granting long term, low-interest favorable
terms small loan of Employment promotion
fund to individuals, herders non-official employed
individuals who want to run household production, to
run production in sole propietor, partnershi p forms.
November
Cooperated with Joint declaration for Developing
sound and sustainable financing that is socially and
environmentallyfriendly , and declared to work
towards introducing appropriate concepts and
systems of sustainable financing for Mongolian banking
and finance system
Implemented the work of introducing electronic form
of Bid security
In accordance with the purpose of increasing blood
supply recourses to save thousands of lives and
improve health, Social responsibility implementor
Capital bank successfully organized the Warm heart
humanitarian campaign presenting blood voluntarily
2nd year. Banks employees, employees of subsidiary
companies of Bishrelt group, employees of Mongolian
Press institute of Mongolian national broadcaster
television and other volunteers totaling 100 people
attended the campaign.
December
Mongolbank authorized the BOD decision of
increasing charter funds by 11 billion MNT. Thus now
Capital banks paid up capital reached 33 billion.
Opened unit at 2
nd
khoroo of Chingeltei district, or
NaimanSharga foreign currency exchange center as
we call it, on 11th December 2013.
Awarded with a prize BEST
ENTREPRENEUR of banking sector
of 2013 organized by Chamber of
commerce the 17
th
year that selects
the best enterprises contributing to
the social and economic development
of the country
37
Organized ceremony of selecting TOP 150 entities of 2012 in cooperation with Mongolian government and MNCCI.
Our bank was selected as one of the TOP 150 entities that indicates the contribution of private sector to our
countrys economy and business development, was selected as one of the TOP 5 BANKS first time, received 4
th

place at TOP 10 SOCIAL RESPONSIBILITY IMPLEMENTER COMPANIES.
AWARDS
Awarded with a prize BEST ENTREPRENEUR of banking sector of 2013 organized by Chamber of commerce
the 17
th
year that selects the best enterprises contributing to the social and economic development of the country
Banks objectives set forth for the year 2014
Improve human resource comprehensive policy
and performance management, form responsible,
right-attitude, creative staff, acculturate
organizational culture.
Introduce risk management methods and
softwares used at international levels, improve risk
management multilateral processes
By managing banks development and marketing
appropriately, improve the quality of services of
front office employees, increase product sales and
market share of the bank.
Improve management of loan operations, develop
and implement sustainable funding policies and
guidelines to the operations, improve loan reports
and monitoring/ control system.
Take active parts in national and international
projects, partici pate regularly at money market
and asset market operations, attract cheap funding
sources by strengthening cooperation with
international and domestic financial institutions,
cooperating effectively, Effectively and properly
implement the asset and liability combined
management and increase the banks profitability.
Improve the banks accounting policies, loan
recording, clearing and settlement processes in
accordance with the international standards in a
timely manner, implement reliably and promptly.
Introduce new and advanced technology with
international standards, provide the information
system safety and soundness, continuity, fully
automate banking activities/operations, create an
appropriately managed information technology and
control system.
Develop banks legal policies and documents in
accordance with Mongolian laws and legislations,
protect banks rights, legal interests and reputation,
implement measures for security purposes of the
bank.
Introduce implementation management and
innovative approaches to its operations, monitor
the implementation and performance of banking
legislation, rules and regulations, of orders, decisions,
assignments of BOD, executive management and
committees, assess and draw conclusion, contribute
to the banks business development by presenting
the results and providing with information to the
management, improve control activities on money
laundering and financing of terrorism
Ensure banks security and protection and reliability
of information, implement the economic activities
continuously in a normal and timely manner
Improve the quality of services of the employees
of branches and units, increase product sales and
productivity by improving communication ethics,
professional experience, job irresponsibleness and
corporate culture and enhance and expand its
market position in its related region.
BANKS OBJECTIVES SET FORTH FOR
THE YEAR OF 2014
39
FINANCIAL REPORT
ASSETS 12/31/2013
Cash 6,627,362.0
Funds placed in Mongolbank 71,054,351.7
Fund placed in other banks and financial institutions 33,473,543.2
Precious metals -
Securities 80,972,880.4
Loans /net/ 306,862,080.9
Other fixed assets 1,703,655.5
fixed assets /net/ 30,342,709.4
Intangible assets 2,493,561.2
Other assets 120,684,304.8
Total assets 654,214,449.0
Liabilities
Current accounts 140,651,384.6
Savings accounts 81,863,934.6
Resources from banks and financial institutions 193,256,158.8
Project resources 89,437,644.3
Other debt 7,289,089.0
Other Liabilities 100,660,105.1
Total Liabilities 613,158,316.5
Owner`s equity
Equity fund 33,000,000.0
Reserve and other funds 361,063.6
Paid-up capital 3,838,364.1
Net income/loss of the current year 2,894,978.9
Net income/loss of the previous year 961,725.9
Subordinated debt
Total owner's equity 41,056,132.6
TOTAL LIABILITIES AND OWNER'S EQUITY 654,214,449.0
Balance sheet
PRUDENTIAL RATIOS SET BY MONGOLBANK
Tier-one capital adequacy ratios >9%
14.31%
Capital adequacy ratio >12%
14.33%
Liquidity ratio >25%
35.08%
Ratio of Nonperforming loans to Total loans
2.59%
Foreign currency adequacy ratio /Total currency / (-40%, +40) 19.88%
INCOME STATEMENT
Interest revenue 38,123,598.0
Interest expense 28,660,495.6
Net interest revenue 9,463,102.5
Noninterest revenue 15,852,136.2
Noninterest expense 22,036,022.8
Net noninterest revenue (6,183,886.7)
Non general operations revenue -
Non general operations expense 171,913.6
Net non-general operations revenue (171,913.6)
income before taxes 3,107,302.2
Income taxes 212,323.3
Income after taxes 2,894,978.9
MAIN FINANCIAL INDICATORS FOR THE LAST FIVE YEARS
Billion MNT
2009 2010 2011 2012 2013
Total assets 83.5 108.2 220.1 325.3 654.2
Loans 41.3 56.1 121.2 193.0 306.9
Liabilities 72.3 95.7 209.7 300.9 613.2
Deposits 55.1 76.8 122.9 148.6 225.5
Profit/ Loss 0.4 0.5 0.9 1.0 2.9
Paid-up capital 10.8 12.0 16.5 23.4 38.2
41
RISK MANAGEMENT
Integrated risk management system
Because banks implement the financial intermediary
activities in the economy, communities and market
are vulnerable to any problems from the weak bank
governance. Because weak governance of the bank
aligns with risk management system, Capital bank
established its integrated risk management system in
accordance with best international practices which
contributed to strengthening of the customers
confidence.
In order to improve further to perfection the risk
management system of Capital bank and protect against
the potential risks to banking operations sustainability,
we comply with the policy and strategy of estimating,
managing, reporting the banks integrated risk.
The main purpose of risk management system is
estimate and define the banks risk level, develop
measures and policies to prevent, increase
competitiveness of bank and ensure sustainability and
stability of the bank by managing the risk impact.
Because skill building and effectiveness of the staff are
considered to be basis for establishing risk management
system, we worked effectively to build skills of our
risk team and introduced innovative approaches and
methods on risk assessment during 2013.
Risk management system consists of Credit risk
management, market risk management, operational risk
management and specific assets risk management and
continuously expanding its scope of operations.
Credit risk management
For the banks, credit risk arises not only because
of the borrower also arises because of the economic
condition. As for our bank, we are conducting potential
risk research that might arise due to creditor and
economic condition and working to prevent. Moreover,
in the framework of integrated risk management, we
are setting loan portfolio concentration within unit,
branch and the overall system, limitation, ratios of
appropriate quality and working in alignment with it.
Loan portfolio concentration: loan portfolio
concentration is calculated by Comparing interval of
credit amount, credit product, total loan granted to
one economic sector to total loan portfolio, and then
the result is to be evaluated and concluded whether
the percentage of total loan portfolio is at appropriate
levels and measures to be taken accordingly.
Credit limitation: Mongolbank poses the following
requirements to commercial banks: 1. As for all the
branches and units of the bank, A total loan and similar
assets granted to a single party and his/her/its relevant
parties cannot exceed 20% of the owners equity. 2.
A total loan and similar assets granted to the banks
relevant party cannot exceed 5% of, and sum of such
loans cannot exceed 20% of, owners equity. As for
our bank, we regularly monitor to ensure whether the
above requirements are complied with.
Credit quality: Monitor regularly to ensure whether the
bank is complying with the requirements of Mongolbank
on quality loans to total loan balance ratio of bank units,
branches and total system, we are working to decrease
amount of non-performing loan by increasing the
repayment of overdue and non-performing loans, to
automate loan classification transfer process and reduce
process time.
Liquidity risk
Our bank works to set minimum ready cash amounts
in case of sudden and large-amounted withdrawal by
customers, maintain the policy of maintain proper ratio
of borrowed funds and its own sources of funds, Gives
evaluation by monitoring and measuring the liquidity risk
independently.
Interest rate risk
A banks credit and financial investment operations
A banks credit and financial investment operations
are the main cause of interest rate risks.
43 Risk management
While in the short-term fluctuating interest rates
directly influence the banks net interest income,
these influences the banks capital in the long term.
The positions are monitored on daily basis and
kept within approved limits using a hedging strategy.
Bank shall work to prevent from potential loss by
constantly calculating the interest risks.
Foreign exchange risk
The banks administration limits and constantly
monitors foreign currency positions. Furthermore,
the bank started using a VAR method in assessing
foreign exchange risk since 2008. The VAR model
measures the risk by estimating the changes in a
portfolios value within a fixed time period and given
confidence level. These models assume that the
changes in factors that influence a standard market
environment have an underlying normal distribution.
To determine changes in foreign currency portfolios
the bank uses variation/co-variation methods based
on historical data for any given day. The bank is
currently using a VAR method with 99% confidence
level and if the market risk doesnt change for one
day, it uses the one day period when the potential
loss is not exceeded. These variables are determined
using data obtained from observation of the market
for 250 days. The 99% confidence level of VAR
means that days when loss exceeds the results from
VAR analysis will be less than 1 in every 100 days.
The VAR method assumes that the market price
movement is statistically distributed. Furthermore,
this method is based on historical correlation and
abrupt changes in market prices which makes its
use limited in some situations. Significant market
fluctuations can be underestimated when the
historical data is flawed or the assumption of
normally distributed market factors is incorrect. As
a result of using assumptions about relationshi ps
between certain tools and risk factors, the VAR
methods conveys only the portfolio risk at the end
of business day and doesnt take into account any
losses exceeding the 99% confidence level.
The bank conduct a survey concerning on the
competition of financial market, its tendency, balance
of payment, prospects of the country and the world,
stock, gold, petrol, money market, inflation to
prevent currency risk. Also the bank has activated
international payment and assessed the risk.
Operational risk
Banks permanently face with certain operational risks.
This influences banks normal operating conditions
adversely. Therefore risk management, especially
operational risk management raises from uncertain
and unforeseen events, and it is a complex control
process to determine, measure, evaluate, manage and
prevent from those events. Significant risks to focus,
to prevent that employees should essentially know
are money laundering and financing of terrorism, and
should fully be aware of domestic and international
legal arrangements. Because the above risk may arise
and become a major risk due to employees occasional
action and his/her lack of knowledge, we introduced
the Policies and procedures of combating money
laundering and terrorism financing of the Capital bank
and are working accordingly. In order to prevent the
risk arising from providing service to the customer
without fully recognizing, arising from lack of information
and fault of information, we are holding the campaign
Updating customer information in all our branches,
units. In order to improve and develop the Information
technology risk management, plans are being developed
to introduce IT risk management and governance
methodology COBIT.
In 2013, Capital bank aimed to work to retain
human resource, use optimal remuneration
system , specialize and develop all levels of
management, employees, make each unit
capable of performing operations properly,
introduce new developments and advances
to banks resource management, foreign
relations and cooperation, improve banks
proper management further to perfection
and make it more transparent, develop
corporate governance.
HUMAN RESOURCES MANAGEMENT
Total of 6 new branches and units were opened in
Ulaanbaatar and provincial areas thus creating 27 new
workplaces. As of December 13 2013, total employees
of the bank summed to 434. Grants, benefits and
fuel discounts were granted in a timely manner in
order to solve the social and economic issues of our
employees. During 2013, 64 employees received grant
aids and benefits, a total of 10,8 million MNT fuel
discount was granted.
Staff training and development
Our bank rehabilitates our employees to domestic
and foreign training sessions in order to improve
employees knowledge. In addition, our bank
educates the employees at domestic universities in a
discounted manner. Total of 30.1 million MNT was
spent for employees training and development and
total of 300 employees rehabilitated in duplicated
numbers.
In order to incorporate to our vision and mission,
create team and teach them corporate culture,
we organized Hello, capital bank courses were
organized for new employees.
To improve knowledge and skills of the employees,
to provide an opportunity to develop themselves, we
reviewed and explored the latest in-demand foreign
and domestic books, brochures and increased the
richness of our own library and entered electronic
library records 100%, organized the introduction
operations of online library and more than 300 online
books were included.
Provides service of in-library reading and home-
reading book borrowing with holdings of 3662 books,
brochures, magazines and manuals and online-
reading
In order to retain our employees, we have conducted
a survey of satisfaction among employees and took
appropriate measures accordingly. According to the
survey, the most important issue was wages, and
we increased the wages to other commercial banks
standards.
Five rings club, consisting of volunteer employees of
the Capital bank, organized the following sports and
cultural activities in accordance with the integrated
plan in order to mobilize the community, allow them
to spend their time correctly.
Set the criteria for positions of each job, announced
the vacant positions among employees, made
possible that each employee meets the conditions
of the criteria for positions. For example, we have
effectively organized the following: by announcing
vacant positions among employees enables them to
be promoted to another career, promote effective,
initiative employees to a higher post, transfer to
another career
Social provisions and discounts
In order to resolve the social issues of our employees,
we issued grants, allowances and other benefits
whenever needed.
In order to create favorable living conditions for our
staff, we granted consumer and mortgage loans with
concessional terms.
In purpose of improving working conditions and
creating a favorable working environment, the bank
has conducted maintenance work with value of more
than 160 million MNT.
45 Social responsibility
Our core value to follow in our operations is
Implement the banks social responsibilities
and work hard to contribute to the
Mongolian development and progress.
Capital bank has total of 21 types of loan
products of which the following types of
loans were granted in accordance with
implementing social responsibility projects:
SOCIAL RESPONSIBILITY
- In the frame work with Organic Mongolia project,
total of 394.7 million MNT micro loans were
granted to total of 79 creditors.
- In order to increase employment and household
income, project loan to support employment
from Employment promotion fund, Sustainable
livelihood-II project loans from microfinance
development fund of World Bank were granted
totaling to 2,02 billion MNT to total of 509
individuals in 2013.
- Granted small and medium business loan,
production loan service totaling to 86,7 billion
MNT loans to SMEs in 2013
- In 2013, in order to implement its objectives and
contribute to the development of our countries
economy, within the framework of cooperation
of Mongolian government and International
cooperation of Japan, our bank signed a contract
to grant loans from Development of small
and medium sized industries, environmental
protection- 2 stage loans, and granted total of
9,2 billion MNT loans.
- Started granting loans in accordance with the
project SME development fund since 2011
to concentrate necessary funding to small
and medium businesses, to support them and
strengthen the position of SMEs in the economy,
to increase employment. In 2013, total of 34,9
billion MNT loan was granted accordingly.
- In order to develop Mongolian agricultural
sector and reduce poverty in rural areas,
Arkhangai,Bulgan, Govi-Altai, Khentii and
Khuvsgulaimags were covered by the program
Market and pasture management and
development of the UN international agricultural
development fund. In accordance with the
program, total of 114,6 million MNT loan was
granted to promote agricultural development, to
support capacity of womens entrepreneurshi p.
- In accordance with the stabilization program of
prices of main goods and products, total of 37,9
billion MNT loans were granted to small and
medium entrepreneurs in 2013.
There were many works and workshops organized
while partici pating in and sponsoring some Social
affairs, providing donations in 2013.
- In co-operation with Duunyurguu non-
governmental organization, worked as a general
sponsor of Zurhniiholboo project that
organized for the Mongolian citizens who is living
and working abroad, dreaming and longing for
homeland, blood-relatives and precious lovers
from distance countries, heartfelt meetings to
the audiences. 5 individuals who were selected
as a winner of Zurhniiholboo project, awarded
with golden opportunity to visit Korea and went
through all kinds of analysis and comprehensive
medical examination for free. And within
the project, partici pants took vacation at
Naranbulag vacation-resort center, attended
yoga meditation and health classes.
- Acted as a general sponsor for Development
and protection-policy reform of people
with disabilities national conference and its
welcoming one-month campaign organized by
Ministry of Human development Social Security,
Rehabilitation and development center in
April and May of 2013. The conference and the
campaign contributed significantly to solving the
problems regarding partici pation of the disabled
in social affairs, creating positive attitude towards
them, improving their employment and income.
- Organized Unagaldais one day for children
in co-operation with Association of Mongolian
students, C1 television and partici pated
approximately 1000 children with their parents.
Presented gifts to each of the children who
partici pated the campaign and traveled to a
variety of interesting stations and watched
performances, held part in fun competitions.
Approximately 40 children who actively
partici pated the tournaments from stations were
awarded with Unagaldai savings book, with
vouchers for Leader training for lecturing and
communication organized from Association of
Mongolian students, with voucher for opening
Student card.
- Partici pated as a sponsor for the CEO SUMMIT
2013 3rd of CEOs-level organized conference
held at MNCCI State chamber on 25th
September 2013
- Partici pated as a sponsor of festival Venus- 3
of Film Institute
- Raised donations amounting to 2.0 million for
the publication of Spoken alphabet for to
contribute to local development
- Donated 2,5 million MNT for the decoration of
Zamyn-Uud sum of Dornogoviaimag
- Donated to the Khovd horse racing festival
winners prize
- Partici pated as a sponsor for Chess blitz-2013
championshi p games under Mongolian bankers
association
- On the occasion of New Years celebration,
visited the Uguumur charity center under
Lotus children center, constructed the green
area and flowering office under the name of
Capital bank, granted each children with office
flowers and hugfullnew year gifts. Furthermore,
the teacher from Haitan club gave the courses
for elementary education of ecology to teach the
children how to grow office flowers, take care of
it, and love and respect the environment properly.
- Green office- organized the Green office
campaign successfully 2nd year.
- Donated computer equi pments to the
Organization for the support of the Mongolian
poor that aims to serve the poor in Ger district
of Ulaanbaatar with free hot meals and aims to
socialize them.
- Organized and sponsored the Health insurance
management seminar in Dornod aimag.
- Organized the charity campaign Children-our
future for the children raised up at Unurbul
orphanage house, awarded the children with
books, toys, school supplies and gifts
INTERNATIONAL INSTITUTIONS WITH
FOREIGN RELATIONS
47 international Institutions with foreign relations
CIA
BANKERSACCUITY
FOREX CAPITAL MARKETS
BLOOMBERG
UNION PAY INTERNATIONAL
VISA INTERNATIONAL
INPAS
JCB
DELL
CORRESPONDENT BANKS LOCATIONS SWIFT CODES Account currency
1 COMMERZ BANK AG
60261, KAISERSTRASSE 16, FRANKFURT AM MAIN,
GERMANY
COBADEFF
400878518000USD
400878518000EUR
2
INTERNATIONAL BANK FOR ECONOMIC
COOPERATIVE OPERATION
MASHA PORYVAEVA STREET,
11 MOSCOW, RUSSIA, GSP-6
107996
IBECRUMM
30111810000000001626 /RUB/
30111840300000001626 /USD/
30111978900000001626 /EUR/
30111826900000001626 /GBP/
3 BANK OF TOKYO MITSUBISHI UFJ LTD
7-1 MARUNOUCHI 2-CHOME,
CHIYODA-KU TOKYO
100-0005 TOKYO JAPAN
BOTKJPJT 635-0467650 /JPY/
4 KOREA EXCHANGE BANK 100 793
181, EULJIRO 2GA, JUNG-GU,
SEOUL 100-793, KOREA
KOEXKRSE
0963-THR-050560010 /USD/
0963-FRW-001000082 /KRW/
5 CHINA CONSTRUCTION BANK
011100 6 QIAN JUN ROAD
ERLIANHAOTE CHINA
PCBCCNBJNME
NRA15014150500220100345 /USD/
15001658408052502696 /CNY/
6
INDUSTRIAL AND COMMERCIAL BANK OF
CHINA
010020 JIAOXUE HOTEL FLOOR 1 1 ULANQIAT
EAST STREET HUHEHAOTE CHINA
ICBKCNBJNMA
NRA15014150500220100345 /USD/
15001658408052502696 /CNY/
7 AGRICULTURAL BANK OF CHINA NEIMENGGU BRANCH, HUHEHAOTE, CHINA ABOCCNBJ050
05999914040000130 /USD
05999901040000145 /CNY/
8 BANK OF INNER MONGOLIA
33 TENG FEI ROAD, HUHHOT, INNER MONGOLIA,
P.R.CHINA 010020
HSSYCNBH
001114236000000161/USD/
201101236000000142/CNY/
9 COMMONWEALTH BANK
GROUND FLOOR, TOWER 1
201 SUSSEX STREET
SYDNEY, NSW 2000
CTBAAU2S
100-054301-AUD-1126-01 /AUD/
100-054301-USD-1151-01 /USD/
10 AKTIF INVESTMENT BANK A.S, ISTANBUL, TURKEY CAYTTRIS
TR840014300000000001042664 /TRY/
TR03001400000000001042667 /USD/
TR600014300000000001056773 /EUR/
11 BANK OF CHINA BEIJING, CHINA BKCHCNBJ 778400002965 /USD/
INFORMATION OF CORRESPONDENTS BANKS
49 Locations and working hours of branches and settlement center
Central bank
Sambuu street -43, Chingeltei district, Ulaanbaatar city
Tel: 976-7000 1912 Fax: 976-11-310833
Monday-Friday 09:00-18:00
Central Branch
Sambuustreet -43, Chingeltei district, Ulaanbaatar city
Tel: 976-7000 1912 Fax: 976-11-310833
50 000 Settlement center
Apartment 21,Enkhtaivan street -15,
Chingeltei district, Ulaanbaatar city
Tel: 976-9611 9903
Monday-Friday 08:00-22:00, Saturday 10:00-22:00,
Sunday 10:00-18:00
Narantuul Credit Center
Narantuul International Commercial Center,
Bayanzurkh district, Ulaanbaatar city
Tel: 976-7007 9004
Monday- Sunday 10:00-18:00, no service on Tuesday
Central Post office cashier
Infromation technology system apartment, Sukhbaatar
square, Chingeltei district, Ulaanbaatar city
Monday-Friday 08:00-20:00, Saturday, Sunday 09:00-19:00
Naimansharga cashier
1st floor of <BosgoUrguu> LLC apartment, nearby
Naimansharga center, Chingeltei district, Ulaanbaatar city

BAGA TOIRUU AREA
Bagatoiruu Branch
1st floor, building 6, 4th khoroo, Chingeltei district,
Ulaanbaatar city
Tel: 976-7007 9018
Khunsnii-4 Settlement center
BagaToiruu -37A, building of Monroimpex LLC,
Sukhbaatar district, Ulaanbaatar city
Tel: 976-7007 9015 Fax: 976-7007 9015
LOCATIONS AND WORKING HOURS OF
BRANCHES AND SETTLEMENT CENTER
Dambadarjaa Settlement center
1st floor, Selbe trading center, Dambadarjaa, Sukhbaatar
district, Ulaanbaatar city
Tel: 976-9611 8022
Tavanbuudal Settlement cashier
13th khoroo, Sukhbaatar district, Ulaanbaatar city
Tel: 976-9611 8815
KHOROOLOL AREA
Khoroolol Branch
2nd Service center, Enebish street-3, 4th khoroolol,
Bayangol district, Ulaanbaatar city
Tel: 976-7007 9002
Monday-Friday 09:00-22:00 Saturday 10:00-19:00
Customs of city Settlement center
Building of Ulaanbaatar city Customs Authority
Transporters street,
Tel: 976-9611 9901
Bokzal Settlement cashier
2nd floor of Ulaanbaatar Central Station, 1st khoroo,
Transporters street,
Monday-Friday 08:00-17:00, Saturday10:00-16:00 ,
Sunday 10:00-15:00
10th Khoroolol Settlement centre
1st floor of Itgelt town , micro district 10, khoroo 5,
Tel: 976- 9611 5003
Material Impex Settlement cashier
1st floor, Material Impex stock company, microdistrict 10,
khoroo 5, Bayangol district, Ulaanbaatar city
Tel: 976-9611 9924
BRANCHES IN ULAANBAATAR CITY
SANSAR AREA
Tsaiz-16 Settlement cashier
1st floor, Apartment 75, Microdistrict 16, Bayanzurkh
Tel: 976-9101 1065
Bayanzurkh Settlement centre
Building of Revolutionary Party of the district, Bayanzurkh
Tel: 976-7007 9010
Botanic Settlement center
Botanic, 12st khoroo ,Bayanzurkh district,
Ulaanbaatar city
Tel: 976-9611 9928
Sansar Branch
Apartment No.2, Microdistrict 15, Bayanzurkh district,
Ulaanbaatar city
Tel: 976-7007 9023
AltanUlgii Settlement cashier
Building of OMHE LLC, khrooo 22,
Bayanzurkh district, Ulaanbaatar city
Tel: 976-9611 8810
KHAN-UUL AREA
Khan-Uul Settlement center
Building of Khangai institute, 3rd khoroo, Chinggis avenue,
Khan-Uul district, Ulaanbaatar city
Tel: 976-9611 9914
Altai town Settlement cashier
3th khoroo, Uildverchinstreet, Khan-Uul district,
Ulaanbaatar city
Tel: 976-9611 8807
Airport settlement center
ChinggisKhaan International airport, Khan-Uul district,
Ulaanbaatar city
Tel: 976-9611 8801
Monday-Sunday 24 hours
TAVANSHAR AREA
21 Branch
Building of Socail Insurance Office, Labor Union Street,
SonginoKhairkhan District, Ulaanbaatar city
Tel: 976- 7007 9019
Tavanshar Settlement center
Building#66,18th khoroo, SonginoKhairkhan district,
Ulaanbaatar city
Tel: 976-9611 8820
21st settlement cashier
Building of social insurance department, Trade Union Street,
SonginoKhairkhan district, Ulaanbaatar city
Tel: 976-7007 9019
Tolgoit station Settlement cashier
Building of Tolgoit Station of UB railroad , 20th khoroo ,
Tel: 976-9611 8820
Khilchin town Settlement center
54, Building of 6th Department, 7th khoroo
,SonginoKhairkhan district, Ulaanbaatar city
Tel: 976-9611 9907
Tsergiinkhotkhon Settlement center
Building#41, Petroleum street, 20th khoroo,
Tel: 976-9611 9917
Gungervaa Settlement cashier
Gungervaa marketplace, Tolgoit, 8th khoroo,
Tel: 976-7017 1811
51
Umnugovi Branch
Dalanzadgad city, Umnugobi province
Tel: 7053-2193 Fax: 70533971
Tsogttsetsii Settlement center
TavanTolgoi village, Tsogttsetsiisoum, Umnugobi province
Tel: 976-8853 7523
Manlai Settlement center
Manlaisoum, Umnugobi province
Tel: 976-9966 0427
Khanbogdsettelement center
Apartment of Ovoogiingobi LLC, Khanbogdsoum,
Umnugobi province
Tel: 976- 9905 4069; 976- 8670 0086
Shiveekhuren cashier
Shiveekuren post, Gurvantassoum, Umnugobi province
Tel: 976-91911146; 976-9987 0405
Gashuunsuhait Settlement cashier
Border point of Gashuunsuhait, Khanbogdsoum,
Umnugobi province
Tel: 976- 8860 9062
Baganuur Branch
Natsagdorj street-63, Narankhoroolol, Baganuur district,
Ulaanbaatar city
Tel: 7021-2412, 7021-0408 Fax: 70212142

Baidlag Settlement centre
4th street of Baidlag, khoroo 4, Baganuur district,
Ulaanbaatar city
Tel: 976-7021 0445 Fax: 0121-7021 0445
Orkhon Branch
Building 20, micro district 4, Khurenbulag Bag,
Bayan-Undursoum, Orkhon province
Tel: 7035-7504 Fax: 7035-7505
Social Insurance Settlement cashier
Building of Social Insurance Department, Khurenbulag bag,
Bayan-Undursoum, Orkhon province
Tel: 7035-7510
Bulag Settlement center
Building #26 ,Oyut bag, Bayan-Undursoum,
Orkhon province
Tel: 7035-6604Fax: 7035-6604
Ikhzaluu cashier
PC mall shopping center apartment, Bayan-Undursoum,
Orkhon province
Urttsagaan Settlement cashier
IkhZaluu Bag, Bayan-Undursoum, Orkhon province
Chandmani cashier
#207, apartment of Erdene-Chandmani LLC, Bayan
Undursoum, Orkhonaimag
Tel: 976-7035 6504
BRANCHES AND UNITS IN PROVINCIAL AREAS
Locations and working hours of branches and settlement center
Zamiin-Uud Branch
Building of Social Insurance Department, ,Zamyin-Uudsoum,
Dornogobi province
Tel: 0252-45-43890, 976- 7052 7996;
Fax: 0252-45-43891
Monday-Sunday 09:00-19:00
Bokzal Settlement cashier
Passengers service center, Zamyin-Uudsoum,
Dornogobi province
Tel: 0252-45-43299
Khil Settlement cashier
Controlling point, Zamyin-Uudsoum,
Dornogobi province

E-trans Settlement cashier
Building of E-Trans LLC, Zamyin-Uudsoum, Dornogobi
province
Arkhangai Branch
Building of Mongolian Telecommunications,
Erdenebulgansoum, Arkhangai province
Tel: 7033-3470 Fax: 7033-3470
Darkhan Branch
Building 15, 6th micro district, 12th bag, Darkhan city,
Darkhan-Uul province
Tel: 976-7037 7102 Fax: 976-7032 7102
Darkhanzakh Settlement cashier
Tax Office Building, 7th bag, Darkhansoum,
Tel: 976- 7037 6983
Monday-Friday 09:00-18:00, Saturday 10:00-15:00
Kheeteikhoroolol Settlement centre
Building of RP, bag 10th, Darkhansoum,
Tel: 01372- 70377112 Fax: 01372- 70377112
Khovd Branch
Building of Medicine supply Khovd, Jargalantsoum,
Khovd province
Tel: 7043-2993 Fax: 7043-29936
Khishigt Settlement center
Building of Governor Administration, Jargalantsoum,
Khovd province
Tel: 7043-9939 Fax: 7043-9939
Tuesday-Saturday 08:00-17:00
IkhBuyan settlement cashier
Ikhbuyan market, OojAan LLC apartment, Jargalantsoum,
Khovd province
Tel: 7043 9933 Fax: 7043 9933
Wednesday-Sunday 09:00-18:00
Khuvsgul Branch
Building of Capital bank, Murun city, Khuvsgul province
Tel: 7038-8498 Fax: 7038-8499
Bayan-Ulgii Settlement center
4 zamiin uulzvar, Ulgiisoum, Bayan-Ulgii province
Tel: 7042-2298 Fax: 7042-2298
Uvs Settlement center
Building of Capital bank, Bag#3 ,Ulaangomsoum,
Uvs province
Tel: 7045-4555 Fax: 7045-4555
Bayankhongor Settlement center
1st floor, building of Capital bank, 3rd bag, Bayankhongorsoum,
Bayankhongor province
Tel: 7044-4595; Fax: 7044-4595
Uvurkhangai Settlement center
Building of center chemists, Bag#5, Arvaikheersoum,
Uvurkhangai province
Tel: 7032-4090 Fax: 7032-4090
Dornod Settlement center
Building of To Van, Bag#9 ,Kherlensoum,
Dornod province
Tel: 7058-4934 Fax: 7058-4934
Selenge Settlement center
Building of Mongol EmImpex , Bag#9 , Sukhbaatarsoum,
Selenge province
Tel: 7036-3752 Fax: 7036-3752
Altanbulag Settlement center
Building of Altanbulag Market center, Bag#9 ,Sukhbaatarsoum,
Selenge province
Tel: 7036-3753
Dornogovi Settlement center
Building of Akhuiuilchilgee ,Sainshandsoum,
Dornogovi province
Tel: 7052-3778
53
CAPITAL BANK ATM LOCATIONS
ULAANBAATAR
CHINGELTEI DISTRICT
Capital Bank building , 1st floor 24 hours
State department store , 5th floor 09:00 - 22:00
Teddy Center front door , Be service office, 1st floor 09:00 - 22:00
Bishrelt hotel , 1st floor 24 hours
KhuchitShonhor Center 07:00 - 18:00
BAYANZURKH DISTRICT
Botanical end, Wellmart Trade Center, 1st Floor 08:30 - 23:00
Dunjingarav Trade Centre , 1st Floor 09:00 - 22:00
The Narantuul International ST 24 hours
Genghis hotel , Sky store , 1st floor 10:00 - 21:00
13thkhoroolol, Miniidelguur , 1st floor 10:00 - 22:00
16th khoroolol ,Wellmart Trade Center, 1st Floor 8:30 - 23:00
BAYANGOL DISTRICT
4th West Road , Grand Plaza , B1 Floor 10:00 - 21:00
3rd khoroolol , Apex Trade Centre , 1st Floor 09:00 - 23:00
10th khoroolol , Shine Delkhii , Wellmart 08:30 - 23:00
SUKHBAATAR DISTRICT
12th khoroo , 32-n toirog , NOMIN -32 Hypermarket 09:00 - 22:00
Skytel s main building , 1st floor 08:30 - 20:30
3rd khoroo Dalai-Eej, Miniizakh , 1st floor 10:00 - 22:00
8thkhoroo, Urguu-2 cinema , 1st floor 08:30 - 23:00
KHAN - UUL DISTRICT
Nomin warehouse Trade Center , 1st Floor, 09:00 - 22:00
Front of Barmashs road, Sky hypermarket , 1 floor 09:30 - 21:00
SONGINOKHAIRKHAN DISTRICT
Soyombo cinema , 1st floor 09:00 - 23:00
Sapporo , Miniidelguur , 1st floor 09:30 - 22:00
Dragon Centre , 1st floor , 24 hours
21stkhoroolol, Miniizakh, 1st floor 09:30 - 22:00
RURAL AREAS
Khovdaimag , Khishig Plaza Trade Center , 1st floor 24 hours
Bayan - Olgiiaimag, Telecommunications Building , 1st Floor 24 hours
Dornodaimag , Tushee store , 1st floor 08:30 - 23:00
Darkhan - Uulaimag, Nomin Trade Centre , 2nd Floor 09:00 - 22:00
Orkhonaimag, Nomin Trade Centre , 1st Floor 09:00 - 22:00
Zamyn-Uud, Customs checkpoints 09:00 - 22:00
Uvurkhangaiaimag , OYU center , 1st floor 24 hours
Umnugoviaimag , Dalanzadgad regional diagnostic centre, 1st floor 24 hours
Capital bank atm locations
55
Audited Financial Statements
CAPITAL BANK LLC
(Entities registered in Mongolia)
31 December 2013
ADDRESS: Sambuu street- 43,
Ulaanbaatar 211238,
Mongolia
MEMBERS OF THE BOARD: Batbayar Tuguu
Gookhuu Sharav
Dorjgotov Tsegmid
Sukhee Majaa
Norjinlkham Baljinnyam
GENERAL SECRETARY: Dashlkhundev Ulzii-Ochir
AUDITORS: Ernst & Young Mongolia Audit LLC
Certifed Public Accountants
We, BATBAYAR TUGUU and ARIUNBOLD AGVAANJAMBA, being the Chairman of the Board of
Governors and Chief Executive Offcer of CAPITAL BANK LLC (the Bank) respectively, and YANJIN
BADARCH, being the offcer primarily responsible for the fnancial management of the Bank, do hereby
state that, in our opinion, the accompanying fnancial statements set out on pages 4 to 86 present fairly, in all
material respects, the fnancial position of the Bank as at 31 December 2013 and of its fnancial performance
and cash fows for the year then ended in accordance with International Financial Reporting Standards.
T. BATBAYAR A.ARIUNBOLD B.YANJIN
Ulaanbaatar
Date: 28 March 2014
CAPITAL BANK LLC
STATEMENT BY MEMBER OF BOARD OF GOVERNORS AND EXECUTIVES
57 Audited Financial Statements
REPORT OF THE INDEPENDENT AUDITORS
To the shareholders of Capital Bank LLC
We have audited the accompanying fnancial statements of Capital Bank LLC (the Bank), which comprise the
statement of fnancial position as at 31 December 2013 and the statement of comprehensive income, statement
of changes in equity and statement of cash fows for the year then ended, and a summary of signifcant
accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these fnancial statements in accordance
with International Financial Reporting Standards, and for such internal control as management determines is
necessary to enable the preparation of fnancial statements that are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these fnancial statements based on our audit. We conducted our
audit in accordance with International Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fnancial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
fnancial statements. The procedures selected depend on the auditors judgment, including the assessment of
the risks of material misstatement of the fnancial statements, whether due to fraud or error. In making those
risk assessments, the auditors consider internal control relevant to the entitys preparation and fair presentation
of the fnancial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our
audit opinion.
REPORT OF THE INDEPENDENT AUDITORS
To the shareholders of Capital Bank LLC
Opinion
The information contained in this communication is intended solely for the use of the individual or entity
to whom it is addressed and others authorized to receive it. It may contain confdential or legally privileged
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of the information contained in this communication nor for any delay in its receipt.
Restriction on use
This report is made solely to the shareholder of the Bank, as a body, in accordance with the audit requested by
shareholder in accordance with Article 94 of Company Law of Mongolia and for no other purpose. We do not
assume responsibility towards or accept liability to any other person for the contents of this report.
ERNST & YOUNG MONGOLIA AUDIT LLC PETER MARKEY
Certifed Public Accountants Partner in charge
Ulaanbaatar, Mongolia
Date: 28 March 2014
CAPITAL BANK LLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
CAPITAL BANK LLC
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013
C
A
P
I
T
A
L

B
A
N
K

L
L
C
S
T
A
T
E
M
E
N
T

O
F

C
H
A
N
G
E
S

I
N

E
Q
U
I
T
Y

F
O
R

T
H
E

Y
E
A
R

E
N
D
E
D

3
1

D
E
C
E
M
B
E
R

2
0
1
3
CAPITAL BANK LLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2013
CAPITAL BANK LLC
NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013
1. CORPORATE INFORMATION
Capital Bank LLC (the Bank) is principally engaged in the business of banking and fnancial services
pursuant to License No. 1 issued by The Bank of Mongolia. There have been no signifcant changes in
the nature of these activities during the year.
The Bank is a limited liability company, incorporated and domiciled in Mongolia. The registered address
and the principal place of business of the Bank is Sambuugiin street- 43, Ulaanbaatar 211238, Mongolia.
The Bank is 99.97% owned by Bishrelt Holding Co. Limited, a company incorporated in Mongolia.
The fnancial statements of the Bank were authorised for issue by the Board of Governors in accordance
with a resolution of the Governors on 31 March 2014.
Mongolia
Ulaanbaatar city 211238,
Chingeltei district,
Sambuu street - 43
Web: http://www.capitalbank.mn
E-mail: info@capitalbank.mn
Tel: +976-7000-1912, 1800-1912,
Fax: +976-310833

2013 оны жилийн тайлан

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