Korea Citibank Reports Q3 Net Profit of 20.5 Billion KRW, Down 71.1% YoY

[Asia Economy Reporter Song Seung-seop] Korea Citibank's net profit for the third quarter of this year decreased by more than 70% compared to the same period last year.

According to Korea Citibank on the 12th, the net profit for this quarter was 20.5 billion KRW, down 71.1% from 71 billion KRW in the same period last year. Total revenue also shrank by 43.5 billion KRW (14.5%) from 299.9 billion KRW in the third quarter of last year to 256.4 billion KRW.

Korea Citibank cited increased funding costs and low-yield liquid assets as the causes. It explained that the decline in net interest margin and the resulting decrease in interest income were the main reasons for the reduction in total revenue. Non-interest income also fell compared to the previous year due to reduced gains from bonds and the sale of non-performing loan assets.

On the expense side, 211.9 billion KRW was spent, an increase of 18.6%. Korea Citibank stated this was a base effect due to the reversal of one-time expenses in the same period last year. Credit loss expenses decreased by 24.1% during the same period to 17.4 billion KRW as credit management remained solid.

The Bank for International Settlements (BIS) capital adequacy ratio and common equity tier 1 ratio were recorded at 18.35% and 17.61%, respectively, maintaining the highest level in the industry.

Customer loan assets increased by 8.3% to 25.8 trillion KRW as of the end of September, and deposits rose by 10.6% to 30.3 trillion KRW. The loan-to-deposit ratio was 83.3%.

Return on assets and return on equity were at levels of 0.16% and 1.28%, respectively.

President Yum Myung-soon explained, “The third-quarter results reflect the challenging business environment faced by Korea Citibank,” but added, “We are detecting encouraging signs in the corporate finance business sector due to increased international trade and the global economic recovery.” She emphasized, “We will continue to make more focused investments in the corporate finance division, which holds a leading position in Korea.”

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