Citibank, Q1 Net Profit of 59.8 Billion KRW... Interest Income Down, Non-Interest Income Up

[Asia Economy Reporter Minyoung Kim] Citibank Korea posted similar results in the first quarter of this year compared to last year.

Citibank announced on the 15th that it achieved a net income of 59.8 billion KRW, a 0.05% decrease from 60.1 billion KRW in the first quarter of last year.

Interest income slightly declined, while non-interest income drove the performance. The bank's first-quarter interest income recorded 232.4 billion KRW, down 3.0% year-on-year due to a reduction in net interest margin (NIM) caused by falling interest rates. Non-interest income increased by 89.4% year-on-year to 97.5 billion KRW, driven by gains related to foreign exchange derivatives and increased fees from investment product sales. Other operating income earned 1 billion KRW, down 8.3 billion KRW year-on-year due to credit value adjustments and increased provisions related to COVID-19.

Expenses also increased. Selling and administrative expenses rose 7.2% year-on-year to 211.5 billion KRW, due to higher personnel costs, rent related to office relocation, and increased expenses for acquiring new customers through digital channels.

Profitability slightly deteriorated. Return on assets (ROA) and return on equity (ROE) were 0.45% and 3.88%, respectively, down 0.03 percentage points and 0.17 percentage points compared to the same period last year.

Asset quality improved. The non-performing loan ratio improved by 0.05 percentage points year-on-year to 0.74%, and the loan loss coverage ratio decreased by 1.4% to 194.1%. In the first quarter, loan loss provisions increased by 13.6 billion KRW (51.4%) year-on-year to 40.1 billion KRW, due to increased personal credit loans and worsening credit conditions.

As of the end of March, the Basel III (BIS) capital adequacy ratio and common equity tier 1 ratio stood at 18.44% and 17.71%, respectively.

This content was produced with the assistance of AI translation services.