Citibank Korea 1Q Net Profit 84.9 Billion KRW... Up 112% YoY

Cost Reduction and Smooth Corporate Finance Progress Interlinked Results

In the first quarter of this year, Citibank Korea posted net profits more than double compared to the same period last year. Despite increasing uncertainties and concerns over a global economic slowdown, growth in the corporate banking sector was credited as the key factor.

Citibank Korea announced on the 15th that it recorded total revenue of 286.8 billion KRW and net profit of 84.9 billion KRW in the first quarter. Total revenue increased by 17.8% and net profit rose by 111.7% compared to the same period last year.

Specifically, interest income was recorded at 219.9 billion KRW. Despite a decrease in loan assets in the consumer finance sector, interest income increased by 7.4% year-on-year due to an improvement in net interest margin (NIM). Non-interest income reached 66.9 billion KRW, up 72.2% during the same period. The increase was mainly attributed to higher earnings from bonds, foreign exchange, and derivatives.

Expenses in the first quarter were managed at 151.5 billion KRW, down 11% from the same period last year. Loan loss provisions amounted to 23.8 billion KRW, an 18.5% increase from the first quarter of last year. This was due to rising delinquency and non-performing loan ratios in the consumer finance sector, which is being gradually phased out, leading to higher loan loss write-offs.

As of the end of the first quarter, customer loan assets stood at 18.0792 trillion KRW, down 19.1% from the first quarter of last year. Deposits decreased by 5.4% during the same period to 25.2721 trillion KRW. The loan-to-deposit ratio as of the end of March was recorded at 54.8%.

Meanwhile, the Basel III (BIS) capital adequacy ratio and common equity tier 1 ratio at the end of the first quarter were 27.15% and 26.07%, respectively. These represent increases of 9.73 percentage points and 9.43 percentage points compared to the same period last year. Return on assets was 0.72%, and return on equity was 6.06%, rising 0.40 percentage points and 3.11 percentage points year-on-year, respectively.

Yoo Myung-soon, CEO of Citibank Korea, stated, "The corporate banking sector, including lending and deposit services for corporate clients as well as securities and derivatives operations, effectively leveraged Citigroup’s unparalleled global network to provide differentiated financial services, resulting in over 70% revenue growth in the first quarter compared to the same period last year." She added, "Based on industry-leading capital strength and solid financial stability, we will continue to maintain a leading position in the global financial market as a reliable partner for our corporate clients."

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