XacBank PresentationXacBank Presentation

Holding Company

2

Shareholders

3

4

People, Planet and Profit Committed to community and environmental issues while operating based on sound commercial principles

XacBank: One of Mongolia’s strongest banks

A leading commercial bank in Mongolia

Established leader in the retail and SME business segments

International institutionalshareholder base

The only Mongolian financial institution which is majority owned by a broad base of globally recognized institutional investors, including IFC and EBRD

Experienced managementSeasoned management team with extensive banking experience in Mongolia and overseas (average banking experience of members of the management team exceeds 20 years)

Strong asset qualityOne of the lowest NPL ratios in the Mongolian banking industry due to stringent underwriting practice and sophisticated risk management systems

Strong capitalizationXacBank received 2 capital injections in 2011, raising approximately MNT37 billion in total from existing and new shareholders

Sound corporate governanceXacBank‘s corporate governance follows international standards and the Bank is recognized for its transparency

Large integrated branch network

An extensive branch, ATM and support center networks broadly covering the nation

XacBank: Key milestones

5

6

2010 2011 1H2012

Total assets (MNT in billions) 468.4 817.6 895.4

Branch Network # 84 92 100

Employees # 1,172 1,327 1,404

Foreign Institutional Lenders #

24 28 31

NPL ratio 1 1.5% 1.2% 1.2%

Risk-weighted capital ratio (CAR)

13.7% 20.8% 19.7%

XacBank at a glance

XacBank was established in 2001

XacBank is one of Mongolia’s leading commercial ban ks, and one of the nation’s largest providers of retail and SME lending services

XacBank’s solid credit rating

Ratings

Moody’s FitchPlanetRating

Bank ofMongolia

Stable B1

StableB

Good4-

CAMELS “Good”

Mongolia Government

Stable B1

Stable B+

Our External Independent Auditors

Ulaan Baatar

6.8% 7.0% 7.0%

2010 2011 1H2012

Net Interest Income over Total Assets

7

Source: Company audit and review report

Net interest income drives revenue Efficiency is improving Profitability has rebounded since 2010

Net Interest margins remain healthy Low NPL ratio and conservative coverage5 Well capitalised to support future growth

Key performance indicators of XacBank

Consistent record of growth and profitability…

91.9%

93.9%92.9%

8.1%

6.1%

7.1%

2010 2011 1H2012

Net interest income Non interest income

29.1

48.2

32.3 67.3% 62.0% 61.9%

2010 2011 1H2012

1.5% 1.2% 1.2%

88.5%

102.5%100.2%

2010 2011 1H2012

NPL ratio Coverage ratio

9.7%14.4% 14.2%

8.1%

6.1% 5.5%

2010 2011 1H2012

Core Capital Ratio Risk Weighted Capital Adequacy Ratio

20.8%

13.7%

19.7%

(MNT in billions)

1.7% 1.9% 2.0%

20.6% 20.7% 20.0%

2010 2011 1H2012

ROAA ROAE

1 Calculated as a ratio of net interest income (before provision for loan impairment) divided by total operating income2 Calculated as a ratio of non-interest income (before provision for loan impairment) divided by total operating income3 Calculated as a ratio of net interest income (before provision for loan impairment) divided by average total assets4 Calculated as a ratio of administrative and other operating expenses divided by total income5 NPL are loans overdue for 90 days whereas impaired loans take into account overdue status, financial position of borrower and ability to realize related collateral.

Company impaired loan ratio was 1.6%, 1.2% and 1.8% for 2010, 2011 and 1H2012. Coverage ratio calculated as reserve for possible loan and lease losses over total NPL

(Cost efficiency ratio)4

3

1 2

Half-Year Results Half-Year Results Half-Year Results

Half-Year Results

8

Source: Company audit report

10 – 1H12CAGR(MNT in billions)

Through a growth strategy built on pioneering retai l lending and increased focus on the growing SME and Corporate sector, XacBank grows at a diverse and granular level

Established growth track record…

Deposit Growth

Gross loans

Customer deposits

Source: Company audit report

10 – 1H12CAGR(MNT in billions)

63%

50%40%33%

85%

49%

Loan Growth

Source: Company dataMain mining exploration site

Strategy

Maintaining XacBank’s commitment to corporate and social responsibility

Expanding the deposit base

Maintaining customer focus and enhancing service quality

Expand XacBank’s presence in SME sector and develop its presence in consumer lending in urban areas

Consolidate XacBank’s status as a preferred and leading financial institution for Mongolian retail and SME customers and preferred transactional bank for

corperates

Increase SME and Corporate business while maintaining leadership in retail

Solidify and expand XacBank’s position as a leading Mongolian financial

institution

Contributeto the social

and economic development of

Mongolia

30 65.4 56.2 42.882.6 107.3

164.4

217.3299.1 237.2

365.3

462.7

2010 2011 1H2012

Current account Demand / Saving Time

125.7235.7 262.058.3

106.9 106.8

57.9

75.8 95.5

48.2

69.173.7

325.9

542.5583.6

2010 2011 1H2012

SME Mortgage Micro Business Customer loan Finance lease Other

Corporate Social Responsibility

9

Corporate Social Responsibility

10

Corporate Social Responsibility

11

LOOKING FORWARD TO PARTNER FOR BETTER MONGOLIA AND YOU!

12