Dear valued investors, we would like to present to you the 2025 CEO letter to shareholders of Golomt Bank.

As we reflect on 2024, I take great pride in Golomt Bank’s remarkable achievements, driven by our steadfast commitment to financial excellence, innovation, and sustainable growth.

In this letter, I will evaluate our performance in 2024, outlining key initiatives and challenges that are shaping our path for continued growth and success. My goal is to provide a clear vision for the future as we work toward becoming a globally recognized financial institution.  I hope that, after reading this letter, you will share my enthusiasm and confidence in our path forward.

2024: A year for the history books:

Golomt Bank has demonstrated resilience and strategic foresight, making significant strides in various key areas:

Macroeconomic Landscape and Banking Sector Performance

2024 was a year of transformation—for both Mongolia and our bank. The country experienced political shifts with the election of 126 members to Parliament and the formation of a coalition government. As is common in election years, government spending surpassing ₮30 trillion, marking a threefold raise over the past five years. This unprecedented fiscal expansion fueled strong domestic demand but also introduced new challenges.

Household incomes grew by 6%, driven by higher public sector wages and social benefits. However, spending grew even faster, adding pressure to inflation and imports, which reached to 9.6% in early 2025, surpassing the Bank of Mongolia’s target range.

Toward the end of the year, we also saw the MNT weaken, as higher imports contributed to a widening current account deficit.

Against this backdrop, credit demand remained strong. Total bank lending expanded by 36% year- over-year, adding ₮10 trillion and reaching ₮37 trillion. However, deposit growth lagged, signaling potential liquidity constraints ahead. While this reflects the economy’s need for financing, it also highlights the importance of prudent risk management in the banking sector.

Overall, 2024 was a year of rapid credit growth, budget- driven demand, and evolving market conditions, but it also set the stage for critical adjustments in monetary and fiscal policy. As one of the leading financial institutions, we remain committed to navigating these changes with resilience, ensuring stability, and delivering sustainable growth for our shareholders.

Led the way in international debt markets with $450 Million Bond Issuance

2024 was a landmark year for Golomt Bank as we made significant strides in the international debt markets. In May, we became the first Mongolian commercial bank in 12 years to issue a standalone US dollar bond, successfully raising $300 million at an 11% yield. This achievement set a new benchmark for Mongolian commercial banks and demonstrated the confidence of global investors in our institution and the country’s financial sector. The deal was also recognized as the Best Frontier Markets Deal of 2024 by the IFR Asia Awards.

Investor demand remained strong, allowing us to further tap the market in November, securing an additional $100 million at a significantly lower yield at 8.5%. In just six months, we reduced our funding costs by 350 basis points, a crucial achievement in strengthening our capital base and optimizing financial efficiency.

Additionally, in December, we issued Mongolia’s first-ever green and social bond, raising $50 million at an 8% yield, which was listed on the Luxembourg Stock Exchange. With this issuance, our total international bond proceeds reached $450 million, underscoring our ability to attract sustainable financing and support Mongolia’s transition to a more responsible financial future.

These milestones not only reinforced our leadership in the financial sector but also lay the foundation for further international market access — a critical step as we continue our journey toward becoming a truly global bank. We remain committed to expanding our presence in global capital markets, lowering funding costs, and delivering long-term value for our shareholders.

Strong Financial Performance

Golomt Bank has achieved exceptional financial results in 2024, further strengthening our position as a market leader. Our strategic focus on growth, innovation, and financial discipline has delivered record-breaking performance across key metrics:

Total loans surged by 54.3% year-over-year, reaching ₮7.52 trillion, driven by strong demand across corporate, SME, and retail segments.

Total deposits grew by 16.7% year-over-year, exceeding ₮9.38 trillion, a clear testament to the trust and confidence our customers place in us.

Net profit more than doubled (+100.2%), reaching ₮419 billion, with an impressive Return on Equity (ROE) of 33.6% and Return on Assets (ROA) of 3.5% — a reflection of our strong operational efficiency and profitability. In recognition of this success, we declared dividends of ₮100 per share, ensuring our shareholders benefit directly from our continued growth.

However, I want to emphasize that while it’s easy to achieve short-term earnings by compromising long-term investments or lowering client standards, we choose a different path. At Golomt Bank, we are committed to sustainable and healthy growth across all our business lines. We are not driven by the pursuit of growth at any cost.

In an expanding economy, it is tempting to take shortcuts, such as lowering loan requirements or taking on higher risk to chase quick growth. But we are determined to grow our earnings without sacrificing the smart, long-term investments that are critical for continued success. Our strategy continues to focus on areas that will drive future growth — optimizing operations through technological advancement upholding high AML/CFT compliance standards, expanding financial services to SMEs, and supporting trade sector.  This approach establishes a solid foundation for future success while maintaining strong performance today.

Expansion & Digitalization

At Golomt Bank, we recognize that technological innovation is integral to the future of the banking and financial industry. In Mongolia, digital technologies such as AI, blockchain, and big data are becoming increasingly significant, and we are proud to be at the forefront of these advancements.

Our internet banking service already integrates AI into the personal finance management, and we are committed to further developing this capability in the future to provide even more value to our customers.

We have also placed significant focus on blockchain technology and are actively working to introduce services based on this technology for practical use in the near future.

In our efforts to enhance financial literacy, we launched SocialPay Junior, a digital wallet designed for children and youth aged 7-18, fostering financial education from an early age.

Additionally, we became the first bank in Mongolia to offer Apple Pay, expanding payment options for our customers and providing greater convenience. Our digital transformation extends to pension, payroll, and consumer loan services, simplifying financial access for millions of Mongolians. Furthermore, we’ve expanded our AI-driven banking services, offering personalized customer experiences while improving operational efficiency.

Commitment to Sustainability and Social Impact

Our country faces significant risks from climate change, including rising temperatures, desertification, and extreme weather events that threaten both our economy and traditional nomadic lifestyles. The agriculture and livestock sectors are particularly vulnerable, which poses a direct risk to food security and the livelihoods of rural communities.

At Golomt Bank, we believe that adaptation financing is crucial to creating an infrastructure and ecosystem that is resilient to these challenges. As the impacts of climate change become more pronounced each year, the need for greater adaptation financing grows, and we are actively making our own contribution to this cause.

To mitigate the effects of climate change, substantial reductions in global greenhouse gas emissions are required, and this will necessitate large-scale investments in key market sectors. These changes also present significant opportunities for Golomt Bank as we support our clients’ transition to a low-carbon and climate- resilient economy.

In addition to financing the transition to a low- carbon economy, we have taken steps to reduce our own environmental impact. For example, Golomt Bank became the first bank in Mongolia to be assured by an Ernst & Young audit, which assessed the amount of greenhouse gases emitted by our activities across Scopes 1, 2, and 3.

Further, in collaboration with MUFG, we developed a sustainable financing framework aligned with international best practices, verified by S&P Global. Golomt Bank also became one of the founding members of the Principles of Responsible Banking in New York on 22 September 2019, committing to align our operations with the Sustainable Development Goals and the Paris Agreement on Climate Change.

Through this framework, we responsibly fulfill our obligations and publish our annual Sustainable Development Report, detailing our CO2 emissions according to the international PCAF [Partnership for Carbon Accounting Financials] methodology. We take pride in our efforts to contribute to Mongolia’s sustainable future, demonstrating our real impact on the environment, society, and economy.

Today, our green loan portfolio represents around 18% of Mongolia’s total green loan portfolio within the banking sector and 3.4% of our overall loan portfolio. We are committed to reducing our greenhouse gas emissions by 30% by 2030 and 50% by 2050, in line with international sustainability standards. Additionally, we have allocated ₮70 billion in financing for energy production, distribution, and transmission projects to support Mongolia’s clean energy transition. Our support for gender equality is also evident, with a nine-fold increase in our business loan portfolio for women entrepreneurs, promoting financial inclusion and empowerment.

Challenges

While we have achieved significant milestones, we also recognize the challenges that lie ahead. The global and domestic economies are experiencing heightened volatility, impacting financial institutions worldwide. Fluctuations in inflation, interest rates, and exchange rates require us to remain agile and adaptive in our strategic approach. Mongolia’s economic dependence on commodity exports further underscores the importance of prudent financial management.

In addition, regulatory and compliance requirements are becoming increasingly stringent. As the financial sector aligns with global standards, we continue to invest in robust compliance frameworks, risk management practices, and governance structures to ensure full adherence to regulatory expectations. While these measures enhance transparency and financial integrity, they also necessitate continuous operational enhancements.

The accelerating pace of digital transformation presents both opportunities and risks. As customer expectations shift toward seamless, technology-driven banking experiences, we are committed to delivering secure and innovative financial solutions. However, the rising threat of cyberattacks and data security concerns requires significant investments in cybersecurity and IT infrastructure to protect our customers and maintain trust.

One of the key challenges we face is credit risk, which has become increasingly complex amid global and domestic economic fluctuations. Mongolia’s reliance on commodity exports, particularly in the mining sector, exposes the financial sector to price volatility, which can directly impact borrowers’ ability to meet their financial obligations. As global demand shifts and external market conditions fluctuate, businesses in key industries may experience financial strain, leading to increased credit risks for banks.

Rising inflation and interest rate adjustments also pose further challenges. Higher borrowing costs can affect debt servicing capacity for both corporate and retail clients, potentially leading to  an increase the risk in non-performing loans (NPLs). Maintaining a balanced and prudent lending strategy is crucial to ensuring long-term financial stability while continuing to support economic growth.

Additionally, regulatory changes and compliance requirements demand continuous improvements in our credit risk assessment frameworks. Strengthening due diligence, enhancing credit scoring models, and implementing proactive risk mitigation strategies are essential to maintaining portfolio quality and financial stability. As Mongolia aligns with international financial standards, we remain committed to upholding best practices in risk management.

Furthermore, Mongolia’s banking landscape is becoming more competitive, with both traditional and digital financial service providers striving to capture market share. To remain at the forefront, we are focused on delivering exceptional customer experiences through tailor-made, diversified services, and embracing technological advancements that drive efficiency and accessibility.

Lastly, global financial uncertainties, including geopolitical tensions and market disruptions, continue to be external factors that could influence Mongolia’s financial sector. We recognize the importance of proactive risk management and strategic adaptability to mitigate potential risks and safeguard our long-term sustainability.

Despite these challenges, I am confident in Golomt Bank’s ability to navigate the road ahead. With our talented team, unwavering commitment to excellence, and customer-first approach, we are well-positioned for continued success. As we embrace new opportunities, we remain dedicated to creating sustainable value for our customers, shareholders, and the communities we serve.

Looking Ahead: 2025 and Beyond

As we look ahead, Golomt Bank remains dedicated to sustaining growth while proactively managing emerging risks in an evolving economic landscape.

Macroeconomic Challenges

The banking sector faces several headwinds, including rising inflation, exchange rate fluctuations, and ongoing geopolitical uncertainties. These factors have the potential to impact both business confidence and overall economic stability. Additionally, we anticipate a tightening of monetary policy, which could moderate loan growth across the industry.

Continued global trade disruptions, particularly changes in tariff policies, may also impact Mongolia’s export-driven economy. For instance, the recent 25% tariff on steel and aluminum imports imposed by the

U.S. could disrupt global markets, adding to inflationary pressures. This has direct consequences for Mongolia, as China’s steel production is expected to decline by 3%, reducing demand for coking coal. With China’s coking coal imports projected to drop by 9-10% next year, we will closely monitor these developments and their potential impact on Mongolia’s trade balance.

Banking & Monetary Policy Outlook

Despite a 3-percentage-point policy rate cut in 2024, competition among banks for deposits has kept loan and savings rates relatively stable. However, with inflation expected to remain elevated in 2025, there is limited room for further rate cuts. This means we should not anticipate reductions in loan or deposit rates in the near future.

As monetary conditions tighten, loan growth is likely to slow compared to this year. Given these trends, Golomt Bank will continue to prioritize prudent risk management, promoting responsible lending while supporting key sectors of the economy.

Global Economic Conditions & Domestic Impact

In 2025, domestic demand will remain strong, driven by continued budget spending and dividend payouts. However, this could also contribute to higher inflation, putting additional pressure on consumer prices.

On the trade front, imports are expected to remain high, while coking coal prices — forecasted to drop to around $70-75 per ton — could limit Mongolia’s export revenues and increase pressure on the exchange rate.

That said, there are opportunities ahead. Large-scale infrastructure projects are expected to bring in more foreign investment, strengthening Mongolia’s foreign currency reserves. At the same time, the agricultural sector continues to face challenges, which may constrain overall economic growth and put upward pressure on meat prices, further driving inflation.

Preparing for 2025

In summary, 2025 will be a year of both challenges and opportunities. Inflation, trade dynamics, and investment flows will play a critical role in shaping the economic outlook. At Golomt Bank, we remain focused on navigating these uncertainties with resilience and strategic foresight — ensuring that we continue to support our customers, shareholders, and contribute to Mongolia’s long-term economic growth.

Strategy for 2025

As we look ahead to 2025, our strategy is built on a strong foundation of innovation, sustainability, and financial resilience. We are committed to driving long-term growth while creating value for our clients, shareholders, and the broader economy.

Expanding Our International Presence – We are strengthening our footprint in global capital markets, facilitating foreign market access for Mongolian businesses, and unlocking new opportunities for our clients.

Diversifying the Economy – Supporting SMEs and non-mining industries remains a key priority. By improving financing conditions for these sectors, we are fostering a more balanced and resilient economy.

AI-Powered Banking – Innovation is at the core of our strategy. We are leveraging AI-driven banking solutions to enhance customer experience, improve operational efficiency, and deliver customized financial services.

Commitment to Green Finance – Sustainability is  long-term priority for us. We are expanding our investments in green finance to support Mongolia’s transition to a low-carbon economy and promote environmental responsibility.

Enhancing Shareholder Value & Governance – Maximizing shareholder value is a top priority. In September 2024, we established a dedicated Investor Relations Unit to enhance transparency, strengthen governance, and align with global best practices.

As we move forward, Golomt Bank is dedicated  to delivering sustainable growth, superior financial performance, and long-term value for all stakeholders. We deeply appreciate the trust and confidence our clients and investors place in us, and we look forward to driving continued innovation and expansion in the years ahead.

Beyond 2025

We believe in building long-term shareholder value through strength, investment, and people.

At Golomt Bank, we believe that true shareholder value is built by maintaining a strong, resilient, and forward-looking institution — one that prioritizes the well-being of our customers, employees, and communities.

We do not manage the bank based on short-term stock price fluctuations. Instead, we view our long-term stock performance as a reflection of the work we done over time. That progress is driven by continuous investments in our people, systems, and products — through both prosperous and challenging times. These investments are essential to strengthening our capabilities and positioning the bank for sustainable growth as we aim to become a global player for decades to come.

Our success is built on the culture of dedication and expertise of our people. They are the driving force behind Golomt Bank — serving our customers, supporting communities, building technology, making strategic decisions, managing risk, and driving change. In an increasingly complex and dynamic world, long-term prosperity requires a team of exceptional professionals — people with vision, integrity, and an unwavering commitment to excellence.

This belief is personal to me. I am a product of Golomt Bank, and I am deeply grateful for the career opportunities I have had here. The culture of our organization has always supported young professionals, providing them with the tools and experiences they need to grow. My own journey — from joining the bank straight out of university to becoming CEO — is a testament to Golomt Bank’s commitment to talent development.

As the World changes rapidly, we must continuously improve and innovate to unlock a brighter future for our country. Since its establishment, Golomt Bank has always been a pioneer, leading the way with new ideas and innovations in the market. This spirit of progress is in our DNA, and we will continue to move forward, embracing change while staying true to our core values.

Looking ahead, our focus remains on strengthening Golomt Bank as a dynamic and future-ready institution—one that creates lasting value for our shareholders while making a meaningful impact on the broader economy and society.

CELEBRATING THE 30TH ANNIVERSARY OF GOLOMT BANK

This year marks an incredible milestone for Golomt Bank — our 30th anniversary. As we reflect on this extraordinary journey, I am filled with immense pride and gratitude for all that we have achieved together. Reaching this significant milestone is a testament to the dedication, hard work, and commitment of every single member of the Golomt Bank family.

When we first opened our doors in 1995, our mission was simple: to provide reliable, innovative, and customer-centric financial services that would empower people and businesses to achieve their financial goals. Over the past three decades, we have stayed true to this mission, while continuously evolving to meet the needs of a dynamic market and adapting to the changing landscape of the financial industry.

Through every challenge and opportunity, we have built a strong foundation of trust, service, and excellence. From our humble beginnings as a small bank to becoming one of Mongolia’s leading financial institutions, our success has always been driven by a shared vision — a vision to lead the way in banking and contribute to the growth and prosperity of our country.

This anniversary is not just a celebration of the past but also a reminder of the bright future that lies ahead. As we enter our fourth decade, I am more confident than ever in our collective ability to continue innovating, advancing digital banking, and delivering exceptional service to our customers. The financial landscape is evolving rapidly, and with your unwavering commitment, I am certain that Golomt Bank will continue to be at the forefront of these changes.

I want to take this moment to extend my deepest thanks to all of you — our dedicated employees, loyal customers, shareholders, and partners — for your hard work, trust, and support over the years. It is because of you that Golomt Bank stands where it does today. Together, we have built a legacy of excellence, and I am confident that our continued dedication to our values will propel us to even greater heights in the years to come.