Citibank Korea Reports Q3 Net Profit of 71 Billion KRW, Down 21% Year-on-Year

[Asia Economy Reporter Yoo Hyun-seok] Korea Citibank announced on the 13th that it recorded a net income of 71 billion KRW in the third quarter. This is a 21% decrease compared to the same period last year.

Total revenue for the third quarter was 299.9 billion KRW, down 8% from the same period last year.

Korea Citibank explained that total revenue decreased due to the continued low interest rate environment and reduced credit card spending, despite steady revenue growth in the asset management division.

As of the end of September, the BIS capital adequacy ratio and common equity tier 1 ratio stood at 19.01% and 18.25%, respectively, ranking among the highest in the banking industry.

Provision for loan losses in the third quarter was 23 billion KRW, down 55% year-on-year due to a decrease in credit card assets and proactive additional provisions related to COVID-19 in the second quarter.

As of the end of September, customer loan assets decreased by 1% year-on-year to 23.8 trillion KRW, due to declines in credit card and corporate loans. Deposits increased by 4% year-on-year to 27.4 trillion KRW, driven by growth in demand deposits from corporate and individual customers.

The return on assets and return on equity for the third quarter were 0.54% and 4.51%, respectively.

President Yoo Myung-soon evaluated, "Despite the decline in interest rates and reduced consumption, it is an encouraging sign that momentum is still maintained in our core businesses of corporate finance, asset management, and personal loans."

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