Citibank Reports Q2 Net Profit of 32 Billion KRW, Up 5.6% YoY

[Asia Economy Reporter Jin-ho Kim] Korea Citibank announced on the 13th that it recorded a net profit of 32 billion KRW in the second quarter of this year. This represents a 5.6% increase compared to the same period last year.

As of the end of June, the BIS (Bank for International Settlements) capital adequacy ratio and common equity tier 1 ratio stood at 19.26% and 18.45%, respectively. The capital adequacy ratio decreased by 0.67 percentage points compared to the previous quarter.

Total revenue in the second quarter was 276.3 billion KRW, down 11.6% year-on-year due to a decrease in bond-related profits amid a low interest rate environment and reduced volatility, as well as a decline in gains from loan asset sales, despite steady growth in the personal asset management sector.

Expenses in the second quarter amounted to 204 billion KRW, a 1.8% decrease year-on-year, despite increased personnel costs, due to reduced service costs from overseas affiliates. Loan loss provisions in the second quarter were 30.7 billion KRW, down 53.2% year-on-year, reflecting additional COVID-19 related reserves and solid credit management.

As of the end of June, customer loan assets reached 24.4 trillion KRW, up 5.8% year-on-year. Deposits increased by 5.9% year-on-year to 29.1 trillion KRW, driven by marketing activities and deposit attraction efforts. The resulting loan-to-deposit ratio was 83.2%. The return on assets and return on equity for the second quarter were 0.25% and 2.02%, respectively.

Yoo Myung-soon, President of Citibank Korea, stated, "Despite the challenging business environment caused by the prolonged COVID-19 crisis, we maintained momentum by providing customer-tailored products and solutions. We will continue to strengthen our role as a trusted financial partner by offering continuous value propositions and attracting new customers, thereby driving growth in corporate finance business."

Meanwhile, regarding the sale of the consumer finance division, President Yoo explained, "We will continuously enhance customer experience through mobile app improvements and various marketing activities. We are proceeding with an exit strategy that prioritizes the protection of customer and employee interests."

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