Korea Citibank Q1 Net Profit 40.1 Billion KRW... 16.8% Decrease YoY

Total Revenue of 243.6 Billion KRW... 16.0% Decrease Compared to Previous Year

[Asia Economy Reporter Sim Nayoung] Korea Citibank announced on the 13th that its net profit for the first quarter of this year was 40.1 billion KRW, a 16.8% decrease compared to the same period last year (48.2 billion KRW). Total revenue for the first quarter was 243.6 billion KRW, down 16.0% from the first quarter of last year. Korea Citibank is currently undergoing a phased withdrawal process after announcing its exit from the domestic consumer finance business last year. Citibank explained that the first quarter results reflected uncertainties due to the international situation as well as the impact of the phased withdrawal of consumer finance.

Among total revenue, interest income increased by 0.2% to 204.7 billion KRW. A Citibank official explained, "Although net interest margin improved due to interest rate hikes, interest-earning assets decreased as Citibank is proceeding with the phased withdrawal of consumer finance." Non-interest income was recorded at 38.9 billion KRW, down 54.6%. This was due to a decrease in asset management division revenue and a decline in bond and foreign exchange derivative-related income following the phased withdrawal of consumer finance.

As of the end of March, the Bank for International Settlements (BIS) capital adequacy ratio and common equity tier 1 ratio were 17.42% and 16.64%, respectively, down 2.51 percentage points and 2.46 percentage points from the same period last year. The non-performing loan (NPL) ratio was 0.51%, 0.07 percentage points lower than the same period last year. Expenses for the first quarter (170.2 billion KRW) decreased by 15.4% compared to the same period last year due to reduced personnel costs.

As of the end of March, customer loan assets were 22.4 trillion KRW, down 9.2% from the same period last year. Deposits were recorded at 26.7 trillion KRW, down 6.4%. The loan-to-deposit ratio stood at 80.2%. The return on assets (ROA) and return on equity (ROE) for the first quarter were 0.32% and 2.95%, respectively.

Loan loss expenses for the first quarter were 20.1 billion KRW, down 16.3% compared to the same period last year. Despite additional provisions related to COVID-19, asset quality improved and loan loss write-offs decreased due to strengthened risk management standards.

Yoo Myungsoon, President of Korea Citibank, stated, "The corporate finance business segment continues to deliver solid performance despite market volatility," and added, "We will do our best to achieve our goals of customer support and sustainable growth through strengthened risk management that can respond promptly to the rapidly changing financial environment."

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