Korea Citibank Reports Q1 Net Profit of 73.3 Billion KRW, Down 13.6% YoY

Korea Citibank announced on the 16th that it recorded total revenue of 298.7 billion KRW and net income of 73.3 billion KRW in the first quarter of this year. Total revenue increased by 2.9% compared to the same period last year, but net income decreased by 13.6% year-on-year due to one-time expenses.

Of the 298.7 billion KRW total revenue in Q1, interest income (205.9 billion KRW) decreased by 6.4% year-on-year due to a decline in loan assets in the consumer finance sector despite an improvement in net interest margin. Non-interest income (92.8 billion KRW) increased by 31.9% compared to the same period last year. Citibank explained that the increase in fee income and revenue related to bonds, foreign exchange, and derivatives were the main contributing factors.

Expenses in Q1 amounted to 171.4 billion KRW, increasing by 10.6% year-on-year due to a rise in one-time non-operating expenses such as support for livelihood finance. Ordinary expenses excluding one-time factors slightly decreased compared to the same period last year. Loan loss provisions increased by 36.3% year-on-year to 32.4 billion KRW, reflecting additional reserves based on future economic outlooks in the consumer finance sector.

As of the end of March this year, customer loan assets stood at 11.1 trillion KRW, down 38.4% year-on-year due to the phased discontinuation of the consumer finance sector. Deposits were 18.2 trillion KRW, a 27.9% decrease compared to the same period last year. The loan-to-deposit ratio as of the end of March was 47.2%. The BIS-based capital adequacy ratio and Common Equity Tier 1 (CET1) ratio were 32.74% and 31.67%, respectively, marking increases of 5.2 percentage points and 5.22 percentage points compared to the same period last year (27.54% and 26.45%).

The return on assets was 0.70%, and the return on equity was 5.02%, decreasing by 0.02 percentage points and 1.04 percentage points year-on-year, respectively.

Yoo Myung-soon, the bank president, stated, “Despite challenging domestic and international conditions, our core business continues to show solid growth, and total revenue of the corporate finance group increased by 11% year-on-year based on Citigroup’s unique global network and differentiated financial solutions. As a responsible corporate citizen, we are actively participating in various programs to spread ESG values and assist socially vulnerable groups, and we will continue to strive for sustainable mutual growth with our customers and local communities.”

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