Issue 60| 3 July 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  Local banks struggling with capital adequacy

THE WEEK
The central bank wants to see debt, equity and mergers used to
Grand Guardian boost capital
Insurance has launched
a new education product  Data analysis: Yoma Bank financials update
ahead of its joint-
venture Interest revenue at one of the country’s largest banks jumped
in 2018-19

 Country could see 20 foreign banks by year-end

The number of additional foreign banks expected to receive
licenses is growing

 GGI launches student life product

DEAL OF THE WEEK
 RBF launches fourth round of grant funding
Myanmar Strategic  MSH announces share issuance programme, loan facility
Holding has secured a  Home Affair highlights money laundering strategy
$3m credit facility from  KBZ e-wallet adds ATM function
its largest shareholder  Military lender hikes fixed deposit rates
 Local insurers extending branch channels
DOWNLOAD THE  Military clashes close financial options for locals
MYANMAR FINANCIAL  Bago pre-monsoon loan defaults near Ks3bn
SERVICES REPORT
DATA
 Selected local banks by saving deposit rates
 Local insurers by branch network
 Licensed MFIs
 Selected investment deals in Myanmar
Read FMR’s flagship
report on the sector by  Foreign exchange rates
clicking here  YSX stock prices
Myanmar Financial Services Brief, 3 July 2019
Banking
Local banks struggling with capital adequacy
At least half of local commercial banks remain
short of a key capital adequacy metric,
according to the central bank.
The regulator’s preferred solutions include
bank mergers, subordinated debt issuance and
additional share issuance through private
placements. But, deputy governor U Soe Thein
says banks are dragging their heels.
Among the prudential requirements
introduced in July 2017 was a capital adequacy
ratio (CAR) of 8%. Two years later, however,
no more than half of all commercial banks
meet the requirement, U Soe Thein said at a
recent Commerce Graduates Association (CGA)
event.
“Large banks especially are not meeting that
ratio,” he said.
The July 2017 regulations also installed a
minimum tier 1 capital ratio of 4% and allowed
banks to add tier 2 capital up to a maximum of
100% of tier 1 capital.
This tier 2 capital was “subject to approval of
the Central Bank of Myanmar” and in the
immediate aftermath of the regulations, the
central bank did not provide any guidance on
what instruments would qualify as tier 2
capital.
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U Soe Thein said at the CGA event that local
banks had blamed their poor CARs on the lack
of tier 2 capital regulation.
In response, the central bank in January this
year issued a directive on subordinated debt
that described the necessary criteria to allow
sub debt to qualify as tier 2. U Soe Thein
seemed irritated that not a single bank had yet
to issue sub debt.
"We *the central bank+ knew that issuing
subordinated debt has many challenges in
reality due to the many terms and conditions,
but I will not say it is impossible,” he said.
Myanmar Financial Services Monitor thinks the
deputy governor is being a little unfair here.
The sub debt regulation only came out in
January, and we are aware of banks that have
firm plans to issue over Ks50bn in sub debt.
However, as U Soe Thein noted there are
various “terms and conditions” including a
minimum five year maturity.
Pricing is also likely to be very high, due to the
subordinated nature of the debt and the fact
that a lending bank will have to deduct that
loan from its own core capital.
We understand that the 16% interest rate cap
does not apply to sub debt issuance, and that
the central bank approves the interest rate on
a case-by-case basis.
We have also spoken to local banks that would
be highly reluctant to the purchase sub debt of
other local banks.
Issuing sub debt to foreign investors is an
option, but as many local lenders point out,
the July 2017 regulations have caused serious
issues in the banking industry and made it less
attractive to international accounts.
Myanmar Financial Services Brief, 3 July 2019
Foreign investment
This, in turn, has implications for banks trying
to attract foreign equity investors. U Soe Thein
said that the CBM had approved foreign equity
investment of up to 35% in order to help banks
raise capital.
The IFC turned its $5m convertible loan into a
5% stake in Yoma Bank, but several other
potential investments are not going ahead.
At the same time, the local stock exchange is
currently sluggish, and banks are not willing to
list and sell shares to the public to raise more
capital, U Soe Thein said. Banks want many
multiples of their book value even though
many are struggling to stay profitable, he
added.
“They can also choose private placement *of
shares+ and if it is a reasonable deal, investors
will buy,” the deputy governor said.
We note that banks’ typical response to this is
that the central bank’s approach to regulation
has made the banking sector less stable and
therefore investment harder to attract. For a
more in-depth look at this argument see
our 2018 Financial Services Report.
Even U Soe Thein admitted that investors
would prefer accessible bank deposits paying
8%-9% over preference shares with a fixed
dividend above 10%.
finance.frontiermyanmar.com
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Rethinking revaluation
Local banks have also asked the central bank
to approve fixed asset revaluation, saying that
asset values are increasing, according to the
deputy governor.
But the central bank believes that asset
revaluation will cost a lot of money and that
banks’ capital will not rise as much as they
expected due to falling asset values, said U Soe
Thein.
The central bank told MFSM in May 2018 that
it was preparing directives on sub debt and the
revaluation of fixed assets.
Although the sub debt regulations appeared in
January, the revaluation regulations have yet
to appear. We understand that in fact the
central bank has accepted several banks fixed
asset revaluations, and is perusing them on a
case-by-case basis.
It could be that the central bank will not be
publishing any official directives or regulations
on revaluation.
However, the regulator has a history of
rejecting asset revaluations, and it is unclear
whether the central bank has actually given
final signoff to any banks in this regard.
Again, we are aware of several large banks
that believe revaluation will result in a
significant increase in asset value and
therefore capital. For some smaller banks, a
successful revaluation will mean no room for
tier 2 issuance.
U Soe Thein, however, seemed to stress that
banks cannot rely on asset revaluation and
should look to raise tier 2 and equity capital.
The deputy governor also said that many
banks will have to merge if they want to
survive, a point he has made many times
before.
Myanmar Financial Services Brief, 3 July 2019
Banking
Data analysis: Yoma Bank financials update
First Myanmar Investments published its latest
annual report on 28 June, which contains
updates on its subsidiary Yoma Bank's
financials.
Yoma Bank's deposits increased by 25%
between 2017-18 and 2018-19, passing Ks2trn.
We note that this is exactly the same
percentage increase as between 2016-17 and
2017-18.
Over the course of the last financial year,
Yoma launched a digital banking product called
SMART, which provides customers with 24/7
banking services without having to visit a
branch. There are now over 250,000 SMART
customers, with around 1,000 being added
daily, according to the FMI report.
Despite strong growth the bank is not in sight
of the three largest banks when it comes to
deposits. CB Bank, the smallest of the top
three, has deposits of over Ks4trn.
Yoma Bank's loan book hit K1.6trn at the end
of 2018-19, an increase of 22% from the end of
the previous financial year. That is slower
percentage growth than between the previous
two financial years, although we note Yoma
Bank reported much stronger loan growth in
2017-18 than many other banks.
The lender also has a strong focus on the SME
and retail sectors, which are nascent, as
opposed to the corporate sector.
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In it's annual report, FMI noted that a 36.5%
increase in revenue from its financial services
arm (Yoma Bank and Wave Money) was down
mainly to the bank's growing loan book and a
"gradual increase" in fee income from its
agriculture financing program, loan facilities,
and hire-purchase products.
FMI reports Yoma Bank now has 80 home loan
specialists and 80 SME specialists across its
branches.
The bank also offers largely digital home loan
and hire purchase loan processing, according
to the parent firm.
Yoma Bank has continued to pursue lending to
the MFI and NBFI sector throughout 2017-
18 and introduced a new SMART Credit
Business product.
The SMART Credit product is aimed at small-
scale entrepreneurs who are a part of a larger
company's value chain, and relies on an
automated algorithmic credit scoring system
developed in partnership with Experian. FMI
reports that over 6,000 SMART Credit loans
have been issued thus far.
Yoma Bank's gross margin also improved due
to lower interest expenses compared to
revenue growth, according to FMI.
The jump in net interest revenue is particularly
noticeable. Net interest revenue rose from
under Ks50bn in 2017-18 to move than Ks80bn
in 2018-19 - an increase of 64%.
Myanmar Financial Services Brief, 3 July 2019
We note that AYA Bank, which had a loan book
of Ks2.4bn at the end of the 2017-18 financial
year, posted net interest revenue of Ks60bn
that same year.
According to FMI, Yoma Bank’s Cash
Management Department "was able to reduce
its cash in hand by half" in 2018-19, allowing
a higher return on income from the bank's
assets and boosting profitability.
Yoma Bank’s "digital footprint has increased
significantly" throughout 2018-19, FMI
said, with more than 500,000 customers and 1
million monthly digital transactions.
Banking
Country could see 20 foreign banks by year-
end
The Central Bank of Myanmar (CBM) plans to
allow around seven new foreign banks to
operate by the end of 2019, according to its
deputy governor U Soe Thein.
"There are 13 foreign banks at present and
*there+ will be around 20 at the end of this
year, as new foreign banks will be permitted,"
U Soe Thein said at a recent seminar held by
the Commerce Graduates' Association (CGA).
In late May 2019, the central bank issued
requests for proposals (RFP) to eight
international consulting firms - including
Deloitte, PwC, E&Y and KPMG - to oversee a
foreign bank selection process.
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5
The process also includes a call for expressions
of interest (EOI) from potential foreign banks.
It remains unclear which of the eight
consulting firms submitted an RFP by the
deadline on 24 June.
The central bank seems to have decided on a
larger number of new foreign lenders than it
was originally planning.
In December 2018, U Soe Thein suggested that
one Chinese bank and one Thai lender would
be licensed in 2019. We note that there were
rumours in the market that a Singaporean
bank would also be given a license - though
the bank in question withdrew - and
potentially a Malaysian bank as well.
Then in April 2019, the deputy governor said:
"We will allow…not many *new foreign banks+,
but they will be from our neighbouring
countries that have strong economic and
political relations with *our+ country. However,
nothing has been decided exactly.”
The following month, U Soe Thein announced
that "an appropriate number" of new foreign
banks would be allowed to operate in the
country through branches or subsidiaries in
late 2020.
We note that over the last year the central
bank governors U Soe Thein and U Bo Bo Nge
have variously said “in 2019”, “by 2020” and
“late 2020” when referring to the date at
which new foreign banks would be allowed
into the market.
Myanmar Financial Services Brief, 3 July 2019
Similarly, the projected date at which existing
foreign banks will be allowed to open
subsidiaries has also varied.
Regardless of the time period, the fact that
foreign subsidiaries will be able to provide
retail services, the last area of business still
reserved for local lenders, is clearly significant.
U Soe Thein noted during his CGA speech that
it will be hard for small local banks with only
around Ks20bn in paid-up capital to survive in
a market with 20 foreign lenders, especially if
some are able to compete for retail customers.
There are now 27 local commercial banks.
Several have raised paid-up capital from the
Ks20bn to between Ks30bn and Ks50bn, U Soe
Thein said, but the majority are still at K20bn.
Only two banks have paid-up capital above
Ks100bn, he added. We believe one of these
banks is CB Bank.
The deputy governor also addressed the issue
of capital, which we have covered in a
separate story in this week's brief.
Insurance
GGI launches student life product
Grand Guardian Insurance (GGI) introduced a
student life insurance on 1 July, according to
local media reports.
Parents or caretakers aged between 18 to 55
years old can take out insurance policies for
the benefit of children aged between one and
twelve years old.
The minimum sum insured is Ks1m and the
maximum set at Ks100m. Policies can last
between eight and 19 years, with premiums
paid monthly, quarterly, biannually or
annually.
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The product bears interest, and the
beneficiaries will receive the sum insured to
fund their further education if the policyholder
dies or becomes permanently disabled during
the policy term.
Nippon Life, which will be GGI's partner for life
insurance operation through a proposed joint
venture, assisted GGI in developing this
product.
Myanmar Financial Services Monitor notes
that the Myanmar Insurance Association (MIA)
launched a similar product called "education
life insurance" in April this year.
Differences between the two products include
that education life insurance comes in
maturities of nine, eleven and fourteen years,
and the minimum sum insured is Ks5m. Both
products have the same Ks100m maximum.
SME Financing
RBF launches fourth round of grant funding
The Responsible Business Fund (RBF) Myanmar
rolled out its fourth round of financial grants
for SMEs on 1 July, inviting concept notes from
SMEs.
RBF Myanmar is a "Challenge Fund"
established as part of Danish Development
Assistance to Myanmar with Ks18bn.
Myanmar Financial Services Brief, 3 July 2019 7

The fund also stated on its website that it has
already provided over Ks15.9bn to 504
projects in all states and regions and some
Ks2bn remains available for potential SMEs.
However, it is unclear if RBF will empty the
remaining balance in this fourth round.
For the fourth round, SMEs are required to
implement innovative projects in the following
areas in order to be eligible for a grant::
Energy Efficiency
Water Use Efficiency
Waste Treatment and Recycling
Occupational Safety and Health
The shares will be issued at no less than $20
per share, significantly higher than the closing
mid-market price of $10.5 on 28 June.
We note that in the six months to September
2018, MSH reported raising just over $3m
from 153,500 new shares priced at $20 per
share.
In the 1 July announcement, the firm said the
share sale would allow MSH to scale-up and
expand operations more quickly, take
advantage of additional investment
opportunities, and “partially satisfy market
demand” and “improve liquidity” for MSH
shares.

Food Safety

Managerial and Supervisory Skills

Practical and Technical Skills

RBF said it can provide 50% of the project cost

up to Ks50m for energy, water use and water
treatment projects. The fund can provide 50%
of the project cost up to Ks40m in the other
areas.
MSH also announced a $3m loan facility
provided by Singaporean registered company
According to its timeline, SMEs must submit
Macan Pte Ltd - the largest shareholder in
concept notes by 22 July, and the RBF will
MSH and a related party.
invite full project proposals from shortlisted
SMEs on 9 August. The fund will finally make
The facility has a 6% interest rate and a three
the disbursement to grantees by the end of
year maturity. MSH will immediately drawn
June 2020.
down on $2m.
PE/VC
The share sale and loan announcements come
MSH announces share issuance programme,
two weeks after MSH was rebuffed in its offer
loan facility
to merge with fellow Myanmar-focused
investor Myanmar Investments International
Myanmar Strategic Holdings (MSH) has
(MIL).
announced a share issuance programme and a
$3m loan from its largest shareholder.
The London AIM-listed MIL announced earlier
this month that it was concentrating on
MSH, an investor and developer of consumer
current investments due to market
businesses, will issue 480,000 new company
uncertainty, and was unlikely to consider any
shares over the next 12 months, according to a
new investments for the next few years.
1 July announcement on the London Stock
Exchange AIM.

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 3 July 2019
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 responded that the offer “materially
undervalue*d+” MIL, and did not attribute fair
value to MIL’s assets or their “future upside”.
MSH reported a 472% year-on-year rise in
revenue to $1.86m for the six-month period to
September 2018.
Of that $1.86m in revenue, 24% came from the
education business. Services contributed 71%
and the remaining 5% came from hospitality.
The services division was newly created during
the six-month period to 30 September 2018,
following MSH’s purchase of security firm
EXERA for $2.2m back in June that year.
Revenues in the education business more than
doubled year-on-year from $539,149 to
$1.2m.
This helped reduce the group's net loss for the
six months to September 2018 to $900,000,
compared with $1.08m for the same period in
2017.
finance.frontiermyanmar.com
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AML/CFT
Home Affair highlights money laundering
strategy
Senior Home Ministry officials have highlighted
the need for a national strategy to combat
money laundering at a national workshop on
anti-money laundering and combat financing
of terrorism (ALM-CFT) in Naypyitaw on June
28.
U Maung Maung Kyaw, director general of the
Ministry of Home Affairs’ Bureau of Special
Investigations, said that 90% of the money
laundering cases that his bureau investigates
involve drugs, according to The Irrawaddy.
The director general said that it was “common
for criminals to launder drug money by buying
homes, land, apartments and vehicles, and by
investing and opening bank accounts in their
own names or the names of relatives and
trusted associates,” according to the article.
According to local news site BNI, joint
secretary of the central anti-money launder
team Police. Brig. Gen. Kyaw Win Thein said
his team had looked into more than 100
money laundering cases, of which four were
related to terrorist financing.
Other media reports offered similar figures,
which give the impression that 90-100 money
laundering cases have been investigated under
the current government, with the vast
majority relating to drugs.
However, Kyaw Win Thein also told BNI that:
“In terms of money laundering, illegal trading
of natural resources such as jade and forest
products ranks first and tax evasion and
corruption rank second and third respectively.
Deputy Home Minister Major-General Aung
Thu, chair of the Central Committee for
Combating Money Laundering and Terrorism
Financing, also leads the Strategy Drafting
Committee.
Myanmar Financial Services Brief, 3 July 2019
That committee also includes the deputy
minister of planning and finance, the deputy
attorney-general and the deputy governor of
the central bank of Myanmar as well as a
member of the Anti-Corruption Commission.
Media reported in January this year that the
government had begun work on drafting a
national strategy for AML-CFT, which found a
list of critical shortcomings. These include a
lack of supervision for non-financial businesses
and poor quality AML-CFT reporting from local
banks.
The APG also highlighted the lack of an
“appropriate risk-based strategy” and the
authorities limited appreciation of serious
money laundering lists.
The national strategy will presumably address
some of these issues, although Myanmar
seems likely to return to a Financial Action
Task Force (FATF) “grey list” for states with
“strategic weaknesses” in their AML-CFT
regimes.
Of 40 recommendations that make up the
FATF’s suggested AML-CFT regime, Myanmar
had only “partially complied” with 16 and
failed to comply at all with another 6, the APG
report found.
Myanmar was removed from both the FATF
black and grey lists in 2016.
E-Money
KBZ e-wallet adds ATM function
KBZ Bank has enabled ATM cash-out services
for its KBZPay e-wallet customers, who can
now withdraw funds at any of the bank’s ATMs
across the country.
Previously, KBZPay users were only able to
deposit and withdraw cash at KBZ Bank
branches and its agents.
finance.frontiermyanmar.com
9
The bank said it will not collect any fees for
ATM cash out services during a trial period,
after which it will charge users for withdrawals
in large amounts.
KBZPay was launched in August 2018, and
reached 2 million fully-identified customers in
May 2019, according to KBZ CEO Mike
DeNoma. The KBZPay network boasts 54,000
merchants and 26,000 agents.
CEO Mike DeNoma previously said that KBZ
Bank is aiming for 30 million users - more than
half the population - in the next 10 years. KBZ
Bank's general manager for agent banking U
Soe Ko Ko also told The Myanmar Times that it
expects nearly 4 million downloads of KBZPay
by the end of 2019.
Some 10 local lenders have digital banking
platforms, though only KBZ, CB, MAB and AGD
have wallet-based apps.
KBZ Pay, CB Pay and MAB mobile bank all offer
similar functions and are available to
customers without an existing deposit account
at those lenders.
AGD Pay, however, is not yet available for
customers who do not have either an AGD
bank accounts or credit card.
Click here to view a comparison among mobile
wallets.
Myanmar Financial Services Brief, 3 July 2019 10

Banking For the six month period ended on 30

Military lender hikes fixed deposit rates September 2018, Myawaddy Bank reported a
net interest income of nearly Ks21bn, having
Myawaddy Bank, which is owned by the generated interest income of over Ks77bn.
military conglomerate Myanma Economic
Holdings Public, has raised fixed deposit See below for historical changes in Myawaddy
interest rates for individual account holders Bank's fixed deposit rates:
from 1 July.
Personal Corporate
The bank increased the interest rates on three,
six and nine month deposits as well as the Jul Sep Pre-Sep Jul
rates on one and two years deposits. 2019 2018 2018 2019
1 Month - - 9% -
The hikes only apply to personal accounts, and
3 Months 8.5% 8.25% 9.25% -
the interest rates on three year deposits
remained unchanged. 6 Months 8.75% 8.5% 9.5% -

9 Months 9% 8.75% 9.75% -

1 Year 9.5% 9% 10% 8%

2 Year 9.75% 9.5% - 8.5%

3 Year 10% 10% - 9%

Insurance
Local insurers extending branch channels

Local insurers have been broadening their

The bank offers one, two and three year fixed
deposits for corporate customers. These rates
have not changed in well over year.
Myanmar Financial Services Monitor notes
that Myawaddy Bank made a steep cut across
personal fixed deposit rates in September
2018, lowering its rates by a full percentage
point.
It seems to have backtracked slightly, raising
rates by a quarter percentage point and by
half a percent on one year deposits.
We also note that Myawaddy Bank and
Myanmar Microfinance Bank (MMB) are the
only two lenders to have raised their fixed
deposit rates since the beginning of 2018.
branch networks in recent weeks.
First National Insurance (FNI), which is a
subsidiary of Htoo Group, opened its 15th
branch in Yangon's Thingangyun township on
20 June. MFSM notes that the last branch FNI
opened was in Ayeyarwady region’s capital
Pathein in May.
FNI is applying to form separate JVs for life and
general operations with insurer Maung Thai.
AYA Myanmar Insurance (AMI) launched a new
branch in Sagaing's Monywa Township on 27
June.
This is AMI's 13th branch, and the insurer now
has six branches in Yangon, three branches in
Mandalay Region, and one each in Naypyitaw,
Pathein and Monywa.

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 3 July 2019
AMI is forming a JV with Sompo Japan
Nipponkoa for general insurance.
The largest private insurer by branch network,
Grand Guardian Insurance (GGI), increased its
branch network to 23, with a new branch
opened in Bago on 29 June. GGI has separate
applications for partnerships with two
different Japanese firms for general and life
insurance respectively.
There are now 91 branches across the private
sector insurance network. State-owned
Myanma Insurance has a network of 39
branches. Although insurers have split their
general and life insurance operations into
separate firms, we understanding they are
using the same branch network.
Premium subscribers can click here for the full
ranking of insurers by branch network.
Banking
Military clashes close financial options for
locals
The resignation of ward and village
administrators in Rakhine’s Kyauktaw
Township has resulted in farmers struggling to
access state financing, according to a local
media report. An internet shutdown in that
state, meanwhile, has left locals in the state
capital relying on a single bank.
Local farmers in Rakhine state typically rely on
loans from state-lender Myanmar Agricultural
Development Bank (MADB).
Among the paperwork required by MADB are
documents signed by the appropriate ward or
village administrator.
Local news website BNI reports that even if
farmers can produce their farmland ownership
certificate (some farmers have land use
certificates if they do not own the land) the
bank still cannot issue a loan with the local
administrator’s signature.
finance.frontiermyanmar.com
11
Over 40 village administrators in Kyauktaw
townships resigned last month to protest their
colleagues’ arrest by the Tatmadaw, according
to Radio Free Asia. Two village administrators
were arrested on suspicion they were
members of the Arakan Army.
Meanwhile, the only bank operating in
Rakhine state’s capital Mrauk-U is Global
Treasure Bank, BNI reported. Myanmar's
Ministry of Transport and Communications
(MoTC) last month ordered all telecoms firms
to shutdown mobile data services across nine
townships in Rakhine and Chin
states, AFP reported.
BNI reports that with mobile money services
like Wave Money and True Money no longer
available, the only option is Global Treasure
Bank. There is a KBZ Bank branch in Mrauk-U,
but BNI reports it has been closed since March
when it was hit by bullets fired by the
Tatmadaw.
Banking
Bago pre-monsoon loan defaults near Ks3bn
Bago Region farmers have defaulted on over
Ks2.9bn ($1.8m) pre-monsoon loans from
Myanmar Agricultural Development Bank
(MADB) between 2006-07 and 2016-17.
7Day Daily reported defaulted pre-monsoon
loans totalling Ks2.9bn during that 11 year
period, quoting U Nyunt Shwe, Bago Region
minister for planning and finance.
Myanmar Financial Services Brief, 3 July 2019 12

"The figure does not even count the 2017-18
and 2018-19 fiscal years", said U Nyunt Shwe.
Daily Eleven previously reported that total
defaulted loans between the 2012 monsoon
season and winter 2017 in Bago Region were
in excess of Ks56bn. MADB makes winter
loans, pre-monsoon loans and monsoon
loans.
Myanmar Financial Services Monitor notes
that the volume of defaulted loans in
Ayeyarwady Region between 2012 and 2017
was double that of Bago Region.
Between 2012 and 2017, farmers have
defaulted on Ks125bn in seasonal loans in
Ayeyarwady Region.
Separately, The Myanmar Times recently
reported that MADB lent Ks287.5bn monsoon
loan late last year, and that it has only been
able to collect Ks199.7bn.
The same report said that only Ks49.9bn out of
Ks93.1bn in last year’s winter loans had been
recovered.

Continued from Page 9: KBZ e-wallet adds ATM function

Bank Name Requires deposit / Agent Merchant Users

credit card account network network

KBZ KBZPay No 26,000 54,000 2,000,000

CB CB Pay No 1,500+ 7000+ 500,000

MAB MAB Mobile No 1,500+ 330+ N/A

Banking

AGD AGD Pay Yes *15,000+ 400 N/A

*AGD has a partnership with True Money, and the agent network figure refers to the True Money
agent network

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 3 July 2019 13

Selected banks by saving interest rates (as of July 2019)

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, 3 July 2019 14

Local insurers by branch network (as of July 2019)

No. Insurer Branches

1 Myanma Insurance 39

2 GGI 23

3 IKBZ 19

4 FNI 15

5 AMI 13

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 130

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, 3 July 2019 15

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, 3 July 2019 16

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, 3 July 2019 17

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

 First National Insurance (FNI)  Global Treasure Bank (GTB)

 Grand Guardian Insurance (GGI)  Myanmar Strategic Holdings
 AYA Myanmar Insurance (AMI)  Myawaddy Bank
 Yoma Bank  KBZ Bank
 Commercial Bank of Ceylon  Central Bank of Myanmar (CBM)

DATA UPDATES

Foreign Exchange Rate

1800

1700

1600 2 July 2019

1500 USD Ks1513.1
EURO Ks1708.8
1400
SGD Ks1115.7
1300 Yen 100 Ks1398
1200

1100

1000
9-May

21-Jun

26-Jun
10-Jun
11-Jun
12-Jun
13-Jun
14-Jun
17-Jun
18-Jun
19-Jun
20-Jun
24-Jun
25-Jun
27-Jun
28-Jun
1-Jul
2-Jul
3-Jun
4-Jun
5-Jun
6-Jun
7-Jun
21-May

24-May

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

USD EURO SGD Yen 100 Source: CBM

(2 July 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 0.9 14.7 847 11,000 10,500 11,000 0

3,450 2,750 MTSH 00002 230 6.8 10.7 6,067 3,350 3,300 3,350 0

8,800 7,000 MCB 00003 200 2.5 25.5 0 7,800 7,800 7,800 0

27,000 20,000 FPB 00004 2,000 8.3 9.5 10 24,000 24,000 24,000 0

TMH 00005 7.0 20.6 +100

finance.frontiermyanmar.com
Myanmar Financial Services Brief, 3 July 2019
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