Korea Citibank 3Q Net Profit 61.2 Billion Won... 198% Surge YoY
Benefits in the High-Interest Era Despite Consumer Finance Withdrawal
[Asia Economy Reporter Minwoo Lee] Citibank Korea posted a significantly increased net profit in the third quarter of this year compared to the same period last year and the previous quarter. This appears to be due to an improved net interest margin (NIM) during the high-interest-rate period despite withdrawing from consumer finance.
According to the financial sector on the 15th, Citibank Korea announced that it recorded a net profit of 61.2 billion KRW in the third quarter of this year. This represents a 198% increase compared to the same period last year. Compared to the previous quarter, it also rose by 58.1%. The cumulative net profit up to the third quarter of this year reached 140 billion KRW, growing 39% compared to the same period last year.
Total revenue in the third quarter was 239.3 billion KRW, down 6.7% from the same period last year. Of this, interest income was 202 billion KRW. With the interest rate hikes, NIM improved, increasing by 2.3% compared to the same period last year. On the other hand, non-interest income was 37.3 billion KRW, down 36.7% during the same period. This decline was influenced by reduced revenue in the personal customer asset management sector due to the phased withdrawal from consumer finance. However, due to reduced labor costs following the consumer finance exit, third-quarter expenses decreased by 33.1% compared to the same period last year, totaling 141.8 billion KRW.
As of the end of September, customer loan assets stood at 17.9 trillion KRW, and deposits were 23.7 trillion KRW. These figures represent decreases of 30.6% and 21.8%, respectively, compared to the same period last year.
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As of the end of September 2022, the Basel III (BIS) capital adequacy ratio and common equity tier 1 ratio were 17.42% and 16.71%, respectively. Compared to the same period last year, these decreased by 0.93 percentage points and 0.9 percentage points, respectively. Return on assets (ROA) and return on equity (ROE) were 0.47% and 4.35%, respectively.
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