Korea Citi Bank, 2Q Net Profit 92.8 Billion KRW... 140% Increase YoY

Steady Growth in Corporate Finance Including Foreign Exchange and Capital Markets

In the second quarter of this year, Citibank Korea's net profit reached approximately 93 billion KRW, more than doubling compared to the second quarter of last year. This growth is attributed to steady progress in corporate finance areas such as foreign exchange and capital markets, corporate client cash management, and securities services.

On the 14th, Citibank Korea announced that it recorded a net profit of 92.8 billion KRW and total revenue of 299.2 billion KRW in the second quarter of this year. Compared to the same period last year, net profit increased by 140.1%, and total revenue rose by 41.9%.

Among total revenue, interest income was 216.6 billion KRW, up 7.1% from the second quarter of last year. This improvement in net interest margin (NIM) was achieved despite a decrease in loan assets in the consumer finance sector. Non-interest income surged by 848.7% (73.9 billion KRW) during the same period, totaling 82.6 billion KRW. This is attributed to increased earnings related to bonds, foreign exchange, and derivatives.

Loan loss provisions in the second quarter increased by 110.2% year-on-year to 30.3 billion KRW. The main reason was additional reserves set aside due to changes in future economic outlooks. Return on assets (ROA) was 0.79%, and return on equity (ROE) was 6.49%, rising by 0.49 percentage points and 3.69 percentage points respectively compared to the same period last year.

For the first half of the year, total revenue was 586 billion KRW, and net profit was 177.7 billion KRW. Net profit increased by 126% compared to the first half of last year. As of the end of the first half, the Basel III (BIS) capital adequacy ratio and common equity tier 1 ratio stood at 27.56% and 26.48%, respectively, up 10.3 percentage points and 9.96 percentage points year-on-year.

As of the end of the first half, customer loan assets were 17.216 trillion KRW, down 15.7% compared to the same period last year. Deposits also decreased by 7.7% during the same period to 22.625 trillion KRW. The loan-to-deposit ratio was recorded at 56.0%, which is understood to be due to the phased withdrawal from the consumer finance sector.

Yoo Myung-soon, President of Citibank Korea, stated, "We have achieved continuous growth across all business areas of the Corporate Finance Group, which is our strategic focus. Citibank Korea maintains industry-leading levels of provisioning and capital adequacy sufficient to fully buffer potential risks. Leveraging Citigroup’s global network and product competitiveness, we will actively support Korean corporate clients’ overseas expansion and the increased investment of foreign corporate clients in Korea."

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