Issue 59| 26 June 2019

NEWS
Myanmar Financial ANALYSIS
COMPANIES
Services Brief DATA

Part of the Myanmar Financial Services Monitor

finance.frontiermyanmar.com
IN THIS WEEK’S BRIEF

COMPANY OF  FRD aims to have foreign insurers, JVs start in tandem

THE WEEK
The regulator wants the five foreign life insurers - still to receive their full
Yoma becomes the licenses - to start operations at the same time as the new joint ventures
latest lender to hit the
savings rate floor  AEON Microfinance profits double
The city-based consumer goods-focussed microfinance lender has
reported doubling its profits for the latest financial year

 Mahar Bawga gets AGD loan

Asian Green Development Bank has made its first of several planned
loans to the micro-lending sector

 Nippon Life announces Grand Guardian stake

DEAL OF THE WEEK  Data analysis: World Bank on SME and real estate lending
 IKBZ pays out on destroyed government steel shipment
Grab has joined with the
state-insurer to cover  MTB to compete with lower charges
drivers and riders across  Myanma Insurance to cover Grab drivers and passengers
its growing business  Ongo, METRO partner for digital payments
 Yoma's saving rate down to the floor
 MMFA hoping more members join data sharing platform
DOWNLOAD THE
MYANMAR FINANCIAL  Myanmar Investments board, shareholders reject merger
SERVICES REPORT  Three regions lead MADB's JICA-funded loan borrowers
 Bank branch network round up, 25 June

DATA
 Selected local banks by saving deposit rates
 Local banks and insurers by branch network
Read FMR’s flagship  Licensed MFIs
report on the sector by
clicking here  Selected investment deals in Myanmar
 Foreign exchange rates
 YSX stock prices
Myanmar Financial Services Brief, 26 June 2019
Insurance
FRD aims to have foreign insurers, JVs start in
tandem
The five foreign life insurers that received “in-
principle approval” to operate in Myanmar in
April are still in the “pre-licensing” stage,
although they are all very likely to obtain full
licenses, according to the Financial Regulatory
Department (FRD.)
The regulator reports that the foreign life
insurers are likely to be permitted to start
operating at the same time as the foreign-local
joint ventures to promote fair competition.
Following the finance ministry’s
announcement of the five foreign life insurers
in April, local and international media
portrayed the firms as having been awarded
full licenses. We noted at the time that the
announcement was only one of “in-principle
approval”.
Myanmar Financial Services Monitor has since
spoken to the firms and received conflicting
reports. One insurer reported this week it had
already received a license to operate, while
others said their understanding was that all
five firms are still in the process of receiving a
formal license.
In a search for clarity, we spoke to Financial
Regulatory Department (FRD) director U Thant
Zin, who told Myanmar Financial Services
Monitor on 25 June that the five preferred
applicants are still in the “pre-licensing” stage.
finance.frontiermyanmar.com
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"We gave them *the five applicants+ six
months from the date they were announced as
preferred applicants *5 April+ to complete
their pre-licensing conditions, during which
they have to look for offices and employees."
We note that at least four of the five - Chubb,
AIA, Dai-ichi and Manulife - have already
registered as companies.
It is unclear whether Prudential has also done
so. We highlighted last week that AIA
announced a partnership with a local
healthcare publishing platform and is hiring
staff for various positions.
As all five are well known international firms,
they were very likely to meet the necessary
conditions and receive full licenses, U That Zin
told MFSM, adding that the foreign firms were
likely to get the green light to start operations
at the same time as the joint venture
applicants.
"We would like to see them all start
simultaneously, otherwise it would be unfair
competition,” he said.
The FRD is currently reviewing the JV
applications, and U Thant Zin said previously
that the successful applicants would be
announced: "on or before 31 July".
Microfinance
AEON Microfinance profits double
AEON Microfinance Myanmar posted a 206%
increase in net profits for the financial year
ending on 28 February 2019, according to
reports from the firm's Thai parent.
AEON Myanmar is a subsidiary of Thailand-
based AEON Thana Sinsap, which said its
Myanmar subsidiary also saw 66% year-on-
year growth in sales and 71% in revenues. The
ultimate parent company is the Tokyo-listed
Japanese firm AEON Financial Service.
Myanmar Financial Services Brief, 26 June 2019
AEON Thana Sinsap previously reported that
AEON Myanmar’s revenues hit BHT159m and
its net profits totalled BHT9m ($292,306) for
the financial year ending 28 February 2018.
The Thai parent did not provide figures for
AEON Myanmar’s revenue or net profit for the
2019 financial year.
However, based on the percentage increase
figures from the parent company's report, we
estimate AEON Myanmar’s revenue at
BHT259.17m ($8.4m) and net profits at
BHT18.54m ($602,151) for the financial year
ending 28 February 2019.
AEON Microfinance started its operations in
Myanmar back in 2013 and has two branches
in Yangon and one in Mandalay. The lender
provides micro-loans and installment financing
for electronic devices.
The MFI has a total customer base of 150,000
and has plans to expand its branch network
and product suite.
Banking
Mahar Bawga gets AGD loan
Asian Green Development has issued a
Ks1.4bn ($921,000) loan to Mahar Bawga
Finance (MBF), which tapped Yoma Bank for
Ks2.2bn in financing earlier this year.
Yoma Bank has become the pre-eminent
funder of micro lenders over the last year, and
MBF was its first loan to a finance company
(NBFI). We have noted in the past that the only
other local bank that we are aware has lent to
the microfinance (or NBFI) sector is AGD.
Our understanding is that the MBF loan is
AGD’s first loan to a micro lender in some
time, but that it is planning other transactions
in the near future. The bank has not released
any details about the tenor, interest rate or
structure of its loan. We assume that the
financing is an uncollateralised loan at the new
16% interest rate cap.
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Yoma lends to micro lenders using a distinct
structure as part of a LIFT-funded agribusiness
initiative: taking a borrower’s foreign currency
funding as collateral and lending up to 2.5
times the amount in local currency.
The joint MBF-AGD press release said that
MBF will use the AGD funding to “speed up
expansion”. MBF opened a South Okklapa
branch earlier this year and is now renovating
branches in two other Yangon townships.
MBF said earlier this year that it planned to
open four new branches in 2019.
MBF started operations in 2014 and had more
than 14,000 clients and an aggregate loan
book of Ks4.59bn as of February 2019. The
NBFI offers automobile and mortgage
collateralised lending along with leasing and
consumer finance products. Some 85% of the
lender's loan book is consumer finance
In February, Mahar Bawga said it planned to
launch product financing "soon" with a target
a Ks5bn-7bn in non-durable product financing
lending. The AGD-MBF press release said that
MBF is about to launch "two new products
widely", but did not elaborate.
The Myanmar Times reports that MBF is
planning to change into a public company in
order to list on the Yangon Stock Exchange
(YSX), quoting MBF financial controller Daw
Pan Pa Pa.
She said the firm has 17,000 borrowers and
plans to double this number by 2020.
Myanmar Financial Services Brief, 26 June 2019 4

Insurance Both those partnerships are for general

Nippon Life announces Grand Guardian stake insurance.

Nippon Life Insurance has confirmed earlier Our table of all the joint venture applications is
reports that it intends to take a 35% stake in below:
local firm Grand Guardian Life insurance.
Local company Foreign partner Business
The firm said on 21 June that it had "submitted FNI Muang Thai Life Life
documents to Myanmar's financial authorities
GGI Nippon Life Life
for approval". Nippon Life said it will acquire a
35% stake in Grand Guardian's life business for Capital Life Taiyo Life Life
$21m. CB Insurance Thai Life Life
GWI DB Insurance General
Mitsui
IKBZ General
Sumitomo
Muang Thai
FNI General
Insurance
Sompo Japan
AMI General
Nipponkoa
Tokio Marine &
GGI Nichido Fire General
Insurance

In its announcement, Nippon Life gives the
equivalent figure in yen as Y23bn, but we note
that it has missed out a decimal point. The
equivalent amount in yen is approximately
Y2.3bn.
Nippon Life said that it expects to complete
the transaction between September and
October this year. The new entity will be
named Grand Guardian Nippon Life
Insurance.
Another Japanese firm, Tokio Marine &
Nichido Fire Insurance, intends to take a
maximum 35% stake in Grand Guardian
Insurance’s general insurance arm, according
to media reports. That investment will be
“likely worth” about Y5bn ($44.7m), according
to the Nikkei Asian Review.
Mitsui Sumitomo Insurance is planning a joint-
venture with IKBZ Insurance, and Sompo
Holdings plans to partner with AMI.
Banking
Data analysis: World Bank on SME and real
estate lending
The World Bank recently published it's latest
economic monitor, and we take the
opportunity to look at some of the data
relevant to the banking and financial sectors.
First off, the World Bank notes that credit
growth is still slowing following the 2017
prudential regulations.
Growth in credit to the private sector was 20%
in the first quarter of the 2018-19 financial
year (Q4 2018), down from 21% during the
previous quarter, according to the World
Bank’s report.
We noted in a data analysis back in February
that credit growth fell almost immediately
when the prudential regulations came into
force in the third quarter of the 2017 calendar
year.

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019
The growth in credit to the private sector was
already falling slightly but steadily year-on-
year in the years before the regulation. But in
2017-18 - the old financial year that ended in
March 2018 - the fall was much larger.
We assume that the bank is looking at the year
-on-year percentage growth in "claims on the
private sector" published by the central bank.
That data, which the central bank used to call
credit to the private sector, does indicate that
growth was 21% during the previous quarter
although the central bank has not published
the data for the first quarter of 2018-19
(Q4 2018).
Combining the World Bank’s figure for Q1
2018-19 with the central bank’s published data
gives the chart below showing year-on-year
credit growth by calendar year quarter. We
have used calendar year rather than financial
year because of the recent change in financial
year.
Source: Central Bank of Myanmar
The drop in credit growth looks more stark on
a financial year basis, as we showed with the
graph below in our data analysis earlier this
year - the financial year-on-year growth
dropped from 33% to 23% between the end of
2016-17 and 2017-18.
finance.frontiermyanmar.com
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Source: Central Bank of Myanmar
We also note that looking at quarter-on-
quarter growth shows a cyclical pattern across
the year, but also a downward trend over the
past several years even before the prudential
regulation.
The graph below is from our earlier data
analysis. The latest figures for Q2 2018 and Q3
2018 are 3.6% and 6.8% respectively - showing
a continuation of the same cyclical pattern
across the year but with credit growth slower
than in the same quarters the previous year.
Source: Central Bank of Myanmar
On a positive note, the World Bank points
out that credit growth to SMEs is rising, albeit
from a small base. The year-on-year growth in
SME credit was 80% in Q1 2018-19, according
to the World Bank.
We are unsure of what data the World Bank
looks at here, but the central bank does
publish data on commercial bank lending to
the SME sector.
Myanmar Financial Services Brief, 26 June 2019
However, looking at the last few quarters of
available data it appears there is a potential
mistake in the central bank figures.
The jump in commercial bank loans to SMEs
between Q4 2017 and Q1 2018 is immense,
and cannot be reconciled with the World
Bank's report that SME lending increased just
80% between what would be Q4 2017 and
Q4 2018. Still, it looks as though loans to the
SME sector are will now be north of Ks1trn and
rising quickly.
The World Bank also notes that “easing of
credit conditions for housing” may have
helped the real estate sector.
The report states that banking sector credit to
the real estate sector grew by 200% year-on-
year in Q1 2018-19, following negative growth
in the same period the previous year.
Again, the central bank has not published the
data for that quarter, but we can look at what
has happened to credit to the real estate and
construction sectors over the previous
quarters.
The central bank publishes data showing the
loans to "real estate and construction" on local
commercial bank balance sheets.
Data is also available separately for the foreign
banks, but in terms of volume their lending is
completely dwarfed by the local banks.
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The chart below shows real estate and
construction loans by calendar year quarter as
part of banks' total commercial loans.
We note that the central bank's definition of
commercial loan does not include consumer
lending, agriculture, hire purchase or
mortgage lending.
Source: Central Bank of Myanmar
The World Bank report is looking at the change
in growth between Q4 of the financial
transition year and Q1 2018-19 of the new
financial year, which equate to Q3 and Q4 of
the 2018 calendar year.
The bank is right that between those two
quarters in 2017 there was negative credit
growth, although Q3 2017 seems to be a
slightly usual quarter in general.
Credit veered between positive and negative
growth across quarters in 2017 for commercial
loans in general, not just
real estate/construction.
Between Q3 2017 and Q1 2018 there was a
marked recovery in commercial lending but
not in real estate/construction loans, which
became a much smaller percentage of total
commercial loans throughout 2018.
If we apply the World Bank's reported 200%
increase to the Ks2.4trn in real estate/
construction lending in Q3 2018 then the
figure for Q4 2018 (Q1 2018-19) would be
Ks7.2trn - a huge increase.
Myanmar Financial Services Brief, 26 June 2019
There is no way that commercial lending could
increase by anything like that amount, and so
it seems likely that real estate/construction
lending is once again becoming a larger
proportion of commercial bank lending.
Insurance
IKBZ pays out on destroyed government steel
shipment
IKBZ Insurance has made an ex gratia
insurance payment of Ks491m ($320,915) to
the Ministry of Construction for a construction
material shipment destroyed by the Arakan
Army (AA).
In March this year, the MV Yadanarwin was
transporting steel arch trusses and
other bridge construction supplies from
Yangon to Chin state's Paletwa township.
The total weight of the shipment was 286
tonnes and the ministry insured the shipment
for Ks1trn, paying a total premium of Ks4.1m,
which included Ks1m for damage due to
conflict or war.
Myanmar Financial Services Monitor notes
that the policy is described as covering "total
loss only", which we understand to mean that
the insurer is only obligated to pay out if the
goods are lost in their entirety.
We understand that an AA attack damaged the
goods to the extent that they could not be
used in bridge construction.
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IKBZ held a ceremony on 18 June at which it
made a payment of Ks491m. The backdrop of
the signing stage reads that the payment is "ex
gratia" - meaning that the insurer is not in fact
obligated to make the payment under the
terms of the policy.
Local media, however, were unanimous in
describing the payment as "compensation".
It is possible that the terms of the contact did
not strictly cover the damage to the goods, but
the insurer decided to make a partial payment
as a good will gesture. Unfortunately, we were
unable to clarify the issue with IKBZ.
We note that IKBZ Insurance paid over Ks3.9m
($2,500) in compensation on an inland cargo
insurance policy on 26 February - the first
compensation paid out on that form of
insurance in Myanmar.
That compensation was paid to the Myanmar
Watermelon and Muskmelon Growers and
Exporters Association after a member's truck
transporting 17 tons of watermelons crashed
near Gotwin Valley in Shan State's Naungkhio
Township on 26 January.
Banking
MTB to compete with lower charges
The country's newest lender, Myanma Tourism
Bank (MTB), is to differentiate itself by
charging lowering transactions fees than other
banks, its managing director Saw Bo Bo
told Business News TV.
He said the use of modern banking technology
by retail customers is still low in Myanmar,
compared to other countries, and local banks
charge higher transaction fees than overseas
banks.
"We are working to apply lower transaction
charges as a differentiation point", said
Saw Bo Bo.
Myanmar Financial Services Brief, 26 June 2019
Additionally, the lender aims to provide
customised credit facilities, in addition to
traditional loan products such as overdraft and
term loans.
Plans are also underway for MTB to buy OPTX,
which is the latest version of Oracle
and includes analytical and forecasting
modules for corporate clients, to improve its
cash management services.
Last but not least, the bank will also compete
with other lenders on better customer
services, as it has a focus on the hotel and
tourism industry, which is mainly
service-oriented, said Saw Bo Bo.
He said, "We will create a hotel-like
environment where customers feel physically
and mentally pleasant when they come into
our bank, and we will fulfil *their needs+ with
best banking services."
Saw Bo Bo added that about 20% of the
bank's current loan portfolio is in the tourism
industry and that two additional branches in
Naypyitaw and Mandalay are ready to open.
Muse and Myawaddy branches will also be
launched soon, and the lender plans to hit ten
branches by this year.
MTB said recently that it plans to end 30% of
its total loan portfolio to borrowers in the
hotels and tourism industry. The bank
launched a “Travelling Loan Special Service
Programme and Interest Rate of Bank Deposit”
in cooperation with the Myanmar Tourism
Entrepreneurs Association earlier this month.
finance.frontiermyanmar.com
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Insurance
Myanma Insurance to cover Grab drivers and
passengers
Ride hailing platform Grab has partnered with
state-owned Myanma Insurance to provide
group personal accident insurance for its
drivers and passengers.
The scheme covers drivers and passengers on
the GrabTaxi, GrabThoneBane and GrabBike
platforms in Yangon, Mandalay and Bagan.
They will receive compensation in the event of
accidental death, permanent disability or
bodily injury.
Grab said, "This *insurance+ coverage includes
total personal accident benefits for the driver
or passenger of up to $7,500 per person,
subject to aggregate limits including $10
million per accident in Myanmar. Each incident
will be evaluated individually by Myanma
Insurance."
For any claims made by drivers or passengers,
Grab will file the necessary documents on
behalf of the victims and submit them to
Myanma Insurance and Chubb for review and
processing. Grab will disburse any
compensation approved by Myanma Insurance
and Chubb.
The ride-hailing firm is also facilitating the
transfer of knowledge and expertise from its
global insurance partner Chubb's to Myanma
Insurance.
The US-headquartered insurer Chubb is one of
five international firms to receive a life
insurance license in Myanmar.
Grab's country head Cindy Toh said in June
that daily bookings had risen by 30% over the
last 12 months. The use of GrabPay was up
10% over the same time period, she said. Grab
has a partnership with CB Bank in Myanmar,
which allows drivers to cash out their GrabPay
wallets at the bank's ATMs.
Myanmar Financial Services Brief, 26 June 2019 9

Mobile Money
Ongo, METRO partner for digital payments

B2B focused firm Ongo is to provide digital

payment services to the customers of METRO
Wholesale Myanmar.

The partnership enables Metro customers to

make payments using the Ongo mobile app or
Ongo QR Card.

The food services distribution (FSD) firm

METRO Wholesale Myanmar is a joint venture
between German wholesale company METRO
AG and Yoma Strategic Holding. METRO buys
directly from farmers on behalf of B2B
customers, which include hotels, restaurants
and canteens.
The joint venture also received $20m financing
from IFC earlier this year.
At present, METRO Myanmar has over 400
customers across the country, with over 3,000
food and non-food products available on its e-
commerce platform and mobile application.
Myanmar Financial Services Monitor notes
that earlier this month, Ongo partnered with a
large MFI BRAC Myanmar to provide digital
loan collection services.
Ongo's other corporate customers include ride
-hailing app Oway, Carlsberg Myanmar, Coca-
Cola, motorbike rental firm Rent2Own and a
joint venture MFI Myanmar Finance
International Limited.
Banking
Yoma's saving rate down to the floor
Yoma Bank announced that its savings interest
rate will be lowered from 8.25% to the
regulatory floor of 8% from 1 July.
Myanmar Financial Services Monitor notes
that Yoma Bank also made a cut across fixed
deposit rates in April this year, following a
similar reduction in July last year.
We also note that between July and November
2018, several local lenders reduced their
saving and fixed deposit rates as part of asset-
liability management in following the 2017
prudential regulations.
As a result, saving rates offered by two largest
lenders – KBZ and AYA – and First Private Bank
(FPB) have reached the regulatory floor. Yoma
Bank will join them in the next week.
The same four lenders also offer the lowest
rates on fixed deposits.
The current standard fixed rates offered by
most local banks are 9% for one month, 9.5%
for nine months and 10% for twelve months.
Those four lenders’ rates are often a full
percentage point lower.
Click here to view the table showing the saving
interest rates across selected banks.
Microfinance
MMFA hoping more members join data
sharing platform
The Myanmar Microfinance Association
(MMFA) is hoping to encourage more
members to join the Myanmar Microfinance
Data Sharing Platform (MCIX).
The MMFA held a workshop last week aimed
at educating smaller local microfinance lenders
on the benefits of MCIX, which the MMFA and
local IT system provider ThitsaWorks launched
in October last year.

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019
We understand that there are 10-15 of the
larger MFIs involved in the platform, and that
the MMFA wants to see more of its members
join.
We also understand the Financial Regulatory
Department (FRD) has given its approval for
the platform to sit under the MMFA with
ThitsaWorks in charge of managing it.
The MCIX aims to allow lenders to share basic
credit information about potential borrowers
in order to prevent borrowers becoming over-
indebted.
Microfinance firms can search for clients’
outstanding loans using their national
registration certificate number. This is only
possible, however, if the microfinance firm is
sharing data for the relevant jurisdiction.
According to an MCIX briefing document from
October, an MMFA-appointed committee
oversees the platform and is in charge of
approving any changes to the terms and
conditions of participation.
Only MMFA members that are submitting
regular and complete data are able to use the
platform. Data is to be submitted by the 15th
of every month, and must be provided for at
least 80% of the MFI’s total clients.
In the initial phase, MCIX will help lenders
share “basic” data for all active borrowers,
detailed data for high-risk or defaulting clients
and contact information to allow lenders to
communicate with each other.
finance.frontiermyanmar.com
10
All data uploaded remains the property of the
MMFA members. The monthly subscription
fees ranged from Ks25,000 to Ks2.75m
depending on the number of clients an MFI
has.
MCIX has been described as a "pre-credit
bureau" for microfinance. Micro-lenders have
been trying to deal with over indebtedness
and prevent overlapping clients for some time.
Lenders initially began informally sharing
customers' National ID numbers in areas like
Yangon, Mandalay and Bago, with the
FRD offering no-objection but also no
regulatory clarity.
The FRD's approval for the MCIX platform
helps lenders address the overlap issue, but
the industry is still without a credit bureau.
The IFC is hoping to see the Myanmar Credit
Bureau (MCB), whose regulatory architecture
it helped design, up and running this year.
MCB managing director U Kyaw Soe Min
previously told MFSM that the bureau has no
immediate plans to move into the MFI sector,
but would do so "in the future".
M&A
Myanmar Investments board, shareholders
reject merger
Myanmar Investments International (MIL) has
responded publicly to Myanmar Strategic
Holdings’ (MSH) “unsolicited” merger offer,
which MIL said undervalued its assets.
The proposed offer from MSH “valued each
MIL share at $0.75 to be satisfied by $0.10 in
cash and $0.65 in new MSH shares,” said MIL
in a statement on the London Stock Exchange
on 18 June.
But the MIL board said that the terms
“materially undervalue*d+” MIL, and did not
attribute fair value to MIL’s assets or their
“future upside”.
Myanmar Financial Services Brief, 26 June 2019
MIL therefore rejected the proposal
“unequivocally”, the firm said.
The following day, 19 June, MIL issued a
second announcement after speaking to its
shareholders
“The board has been in contact with
shareholders of the company who collectively
hold an interest in excess of 50% of the voting
rights in the company's issued share
capital,” the announcement said. The
shareholders “unanimous” view was that the
board was correct to reject the proposal.
The London AIM-listed MIL announced earlier
this month that it was concentrating on
current investments due to market
uncertainty, and was unlikely to consider any
new investments for the next few years.
The firm also announced that Stewart
Investors Asia Pacific Fund had sold 3.6m
shares on 30 April - the entirety of its holdings
in MIL. This prompted MSH to make its offer to
MIL, and announce its offer publicly on the
LSE.
MSH said that Stewart Investors’ exit signalled
that “certain MIL shareholders may be actively
seeking liquidity options for their investments
in MIL” - essentially that other MIL investors
would be looking to sell.
MSH, therefore, made a proposal that the two
firms combine generating “significant value to
both companies and their respective
shareholders”.
MIL said it has reduced its annual overheads or
“run-rate” costs from $2.2m down to $1.8m
and expects to see the figure hit $1.2m by the
end of 2019.
As at 31 March 2019, MIL management
estimates the firm had approximately $3.7m in
cash - enough to cover three years of
operation.
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11
MIL’s losses were $2.8m for the 2016-17
financial year, $3m in 2017-18 and $1.3m in its
most recent interim results published for 30
September 2018.
MSH posted losses of $2m for the 2017-18
financial year and $897,968 for its interim
September 2018 results.
In January 2019, it reported a 472% year-on-
year rise in revenue to $1.86m for the period,
with 24% of that total coming from its
education business - Wall Street brand English
language schools. Services contributed 71%
and the remaining 5% from hospitality.
Banking
Three regions lead MADB's JICA-funded loan
borrowers
State-owned Myanma Agricultural
Development Bank (MABD) has lent a total of
Ks93.8bn ($61.3m) to farmers across the
country over the past 22 months using JICA
funding, according to government reports.
Since July 2017, MADB has used a two-step
loan program to provide financing to farmers
for purchasing agricultural equipment and
machinery.
MADB borrows from JICA and then lends out
to farmers at an interest rate of 8.5% for
between three and five years.
Myanmar Financial Services Brief, 26 June 2019
The Ministry of Information reported that the
only two areas where MADB has not made
these two-step loans are Rakhine State and
Chin State. Ayeyarwady, Bago and Mandalay
Regions, on the other hand, have received the
largest allocations.
MADB has made Ks24.1bn in two-steps loans
in Ayeyarwady, Ks21.5bn to Bago and
Ks13.8bn to Mandalay as at the end of May
2019.
Myanmar Financial Services Monitor notes
that the total disbursement to Ayeyarwady
was Ks10.4bn as of the end of October 2018,
while Mandalay and Bago totaled Ks9.5bn and
Ks8.2bn respectively.
Shan State has received the fourth largest
volume of two-step loans with over Ks9.9bn
received as of 31 May 2019 – a Ks6.2bn
increase from October 2018.
MADB has made the smallest amount of loan
to Kayin with only Ks239.2m.
MADB has a similar two-step loan program
with Myanma Economic Bank (MEB), through
which it lends out at 9% to farmers.
In both cases, we understand that the loans
require farmers to hand over their farmland
use permits (form 7) and provide a 30% down
payment on an item being purchased.
finance.frontiermyanmar.com
12
Banking
Bank branch network round up, 25 June
A couple of commercial lenders have opened
new branches in recent weeks, prompting us
to update our bank branch rankings.
Global Treasure Bank (GTB)
GTB opened a new branch in Mandalay's
Chanaye Thazan Township on 18 June.
This is the second branch the bank opened in
2019 and GTB now has 167 branches in total,
making it the fourth largest bank by network,
although it is only the eight largest lender by
assets, loans or deposits.
Ayeyarwady Farmers Development Bank (A
Bank)
The young lender inaugurated its 15th branch
in Shan State’s Muse on the China-Myanmar
border on 25 June.
The lender opened its 14th branch in
Ayeyarwady Region back in April.
A Bank previously said that it was planning
new branches in border areas such as Muse,
Mawlamyine and Hpa-an.
Click here to view private bank ranking by
branch network.
Myanmar Financial Services Brief, 26 June 2019 13

Selected banks by saving interest rates (as of June2019)

No. Bank Interest Rate

1 Innwa 9%

2 A Bank 8.7%

3 AGD 8.6%

4 SMIDB 8.5%

5 Yangon City Bank 8.5%

6 Shwe Bank 8.5%

7 Naypyitaw Sibin Bank 8.5%

8 TCB 8.5%
8.25% - 8.45%
9 GTB
(dependent on amount)
10 MD Bank 8.5%

MTB 8.3% (Tourism), 8.25% (Others)

11 MAB 8.25%
12 CHIDB 8.25%
8.25%
13 Yoma
8% (from 1 July)
14 MCB 8.25%
15 CB 8.25%
16 MMB 8.25%
17 UAB 8.25%
18 MOB 8.25%
19 G Bank 8.25%
8% (Corporate)
20 Myawaddy
8.25% (Individuals)
21 AYA Bank 8%
22 KBZ 8%

23 FPB 8%

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019 14

Local banks by branch network (as of June 2019)

No. Bank Branches

1 KBZ Bank 512
2 AYA Bank 250
3 CB Bank 226
4 Global Treasure Bank 167
5 Myanma Apex Bank 94
6 United Amara Bank 77
7 AGD Bank 77
8 Yoma Bank 76
9 Myawaddy Bank 64
10 Innwa Bank 58
11 Myanmar Oriental Bank 46
12 Myanmar Citizens Bank 42
13 First Private Bank 37

14 Tun Commercial Bank 24

15 SMID Bank 19
16 A Bank 15
17 Asia Yangon Bank 13
18 CHID Bank 12
19 Myanmar Microfinance Bank 12
20 Naypyitaw Sibin Bank 6
21 Shwe Bank 6
22 Yangon City Bank 5
23 Yadanabon Bank 3
24 Myanmar Tourism Bank 3
25 Rural Development Bank 2
26 G Bank 1

27 Mineral Development Bank 1

Total 1,848

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019 15

Local insurers by branch network (as of June 2019)

No. Insurer Branches

1 Myanma Insurance 39

2 GGI 22

3 IKBZ 19

4 FNI 15

5 AMI 12

6 Capital Life 7

7 Global World 6

8 Aung Thitsa Oo 3

9 Young Insurance Global 2

10 EFI 1

11 Aung Myint Mo Min 1

12 CB Insurance 1

Total 128

Licensed MFIs (as of March 2019)

Mar 2018 Dec 2018 Sep 2018 Jul 2018

Local 110 106 104 104
Foreign 47 45 45 42
NGO 16 19 19 22
INGO 3 3 3 4
JV 5 4 4 3
Total 181 177 175 175

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019 16

Selected investment deals in Myanmar (since 2014)

Sale price
Date Investment Investors Sector
($m)

January 2014 Asia Beverages Group Yoma Strategic Holdings, Delta Capital 18.4 Alcohol

JV: Myanmar Investments Internation-

Myanmar Finance In-
September 2014 al Limited (MIL), Myanmar Finance 5 Financial services
ternational (MFIL)
Company (MFC) and Norfund
Apollo Towers Myan-
November 2014 TPG ~40 Telecoms
mar

Apollo Towers Myan- Myanmar Investments International

July 2015 21 Telecoms
mar Limited (MIL)

December 2015 Myanmar Distillery Co TPG 100-200 Alcohol

September 2016 Rangoon Tea House Anthem Asia N/A F&B

April 2017 Ruby Hill Microfinance Dragon Capital, Loi Hein Group N/A Financial services

JV: Myanmar Investments

Medicare Internation-
May 2017 International Limited (MIL) and 0.895 Healthcare
al Health & Beauty
Medicare Vietnam
Freelancing
June 2017 Chate Sat Seed Myanmar, Theta Capital N/A
website
Myanmar Supply
October 2017 Chain and Services and ThaiBev 742 Alcohol
Myanmar Distillery
Digital Classifieds
January 2018 Belt Road Capital Management 1.9 Technology
Group
March 2018 Easy Microfinance Delta Capital 7 Financial services
Belt Road Capital Management, IFC,
April 2018 Oway 14.7 Tech /transport
Daiwa PI Partners

May 2018 Yoma Micro Power IFC, Government of Canada, Norfund 28 Energy

May 2018 EXERA Myanmar Strategic Holdings 2.2 Security

Access Myanmar Dis- JV: Pernod Ricard, Yoma Strategic,

May 2018 N/A Alcohol
tribution Company Delta Capital, Win Brothers

Singapore Myanmar Investco Limited

June 2018 TPR Myanmar Limited 10.8 Telcoms
(SMI)

June 2018 MyPay MySQUAR 2.6 (£2m) Financial services

Marathon Myanmar
September 2018 Seed Myanmar Ventures 0.1+ Logistics
Company

September 2018 For Her Myanmar N/A N/A Media

Pyramid Solutions
September 2018 N/A N/A Listings/media
(MyJobs)
September 2018 FMR Research Trust Venture Partners (TVP) N/A Research firm

finance.frontiermyanmar.com
 Myanmar Financial Services Brief, 26 June 2019 17

Selected investment deals in Myanmar (since 2014)

Sale price
Date Investment Investors Sector
($m)
October 2018 MMTutors Seed Myanmar Five-figure Education
Seed Myanmar, Yangon Capital
October 2018 Flexible Pass Six-figure Fitness
Partners, Nest Tech

November 2018 Rent 2 Own German development institution 6 Automotive

GSMA Ecosystem Accelerator Inno- Six-figure

December 2018 Greenovater Agriculture consultancy
vation Fund grant

January 2019 Live the Dream Trust Venture Partners N/A Career consultancy

Myanmar Institute
January 2019 Trust Venture Partners N/A Education
of Business (MIB)

Zingo (by Ko Shwe

January 2019 N/A (International Investors) 0.35 Healthcare product
Ventures)

Katapult Ocean Accelerator

February 2019 RecyGlo Six-figure Recycling
Program

February 2019 Mote Poh EME, Nest Tech Six-figure Employee benefits

March 2019 KOSPA SF Holding 4 Logistics

March 2019 METRO Wholesale IFC 20 Wholesaler

LanThit Master-
March 2019 EME N/A Call centre
piece Limited

March 2019 rgo47 DPI N/A E-commerce

Shwe Taung
March 2019 SPC N/A Fuel retail
Energy

MM Digital
April 2019 Seed Myanmar, Theta Capital Six-figure IT solutions
Solutions

April 2019 MyanCare SPARX N/A Telemedicine

April 2019 Yoma Fleet Tokyo Century Corporation 26.6 Vehicle leasing

April 2019 Rent 2 Own Incofin 3 Automotive

April 2019 eSchool Blue Tech Venture 0.7 Edutech

Cocoon Capital, two unnamed

May 2019 Kargo 0.8 Logistics
angels

May 2019 Daung Capital BOD Tech Ventures, Majuven N/A Financial services

Source: MFSM, INSEAD Myanmar private equity report 2018

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019 18

COMPANY UPDATES
A selection of recently-updated profiles from the Myanmar Financial Services Monitor.
Access is available to Premium Subscribers only.

 Myanma Tourism Bank (MTB)  Yoma Bank

 Myanmar Investments International  Global Treasure Bank (GTB)
 Myanmar Strategic Holdings  IKBZ Insurance
 Myanma Agricultural Development Bank  Myanma Insurance (MI)
 Ongo (Ronoc Myanmar)  AGD Bank
 Financial Regulatory Department (FRD)  Grand Guardian Insurance (GGI)

DATA UPDATES

Foreign Exchange Rate

1800

1700

1600
25 June 2019
1500 USD Ks1515.7
EURO Ks1725.8
1400
SGD Ks1119.9
1300
Yen 100 Ks1411.1
1200

1100

1000
2-May
3-May
6-May
7-May
8-May
9-May

17-Jun

20-Jun

25-Jun
10-Jun
11-Jun
12-Jun
13-Jun
14-Jun
18-Jun
19-Jun
21-Jun
24-Jun
3-Jun
4-Jun
5-Jun
6-Jun
7-Jun
16-May

21-May

24-May

29-May
10-May
13-May
14-May
15-May
17-May
20-May
22-May
23-May
27-May
28-May
30-May
31-May

USD EURO SGD Yen 100 Source: CBM

(25 June 2019) Yangon Stock Exchange (YSX) Quote (Myanmar Kyat)
1Y 1Y Yield Net
Stock Code Vol High Low Close
High Low Div % P/E Chg

13,000 8,500 FMI 00001 100 0.8 16.1 2,640 12,500 12,000 12,000 0

3,450 2,750 MTSH 00002 230 6.6 11.1 3,804 3,450 3,450 3,450 0

8,800 7,000 MCB 00003 200 2.5 25.9 0 7,900 7,900 7,900 0

27,000 20,000 FPB 00004 2,000 8.3 9.5 262 24,000 24,000 24,000 -500

TMH 00005 6.6 21.7 -50

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 26 June 2019
About Us
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Myanmar Financial Services Monitor are
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