Citibank Korea 3Q Net Profit 74.3 Billion KRW... 21% Increase YoY

Non-Interest Income Soars Sharply

Korea Citibank continued its growth trend in the third quarter of this year, achieving a net profit exceeding 70 billion KRW.

On the 14th, Korea Citibank announced that its net profit for the third quarter of this year reached 74.3 billion KRW, a 21.0% increase compared to the same period last year. Total revenue, which is equivalent to sales, also rose by 16.0% during the same period to 277.5 billion KRW.

Interest income was 206.7 billion KRW, up 2.3% from the same period last year, reflecting an improvement in net interest margin. The increase in non-interest income was even more significant, recording 70.8 billion KRW, a 90.0% increase compared to the same period last year. This is attributed to increased income related to foreign exchange, derivatives, and securities.

As of the end of the third quarter this year, the Bank for International Settlements (BIS) capital adequacy ratio and common equity tier 1 capital ratio stood at 27.9% and 26.8%, respectively, rising by 10.5 percentage points and 10.1 percentage points compared to the same period last year.

Expenses in the third quarter were 154.2 billion KRW, an 8.7% increase from the same period last year. The increase in loan loss expenses was notable, recording 26.7 billion KRW, up 60.8% during the same period. This is due to a base effect caused by increased reversals of loan loss provisions following a decrease in consumer finance loans in the third quarter of last year.

Due to the phased discontinuation of the consumer finance sector, customer loan assets decreased by 16.9% compared to the same period last year, totaling 14.8874 trillion KRW. Deposits also declined by 12.7% to 20.6706 trillion KRW.

Myung Yoomsoon, CEO of Korea Citibank, commented, "In the third quarter of 2023, we recorded solid total revenue driven by remarkable growth in non-interest income, which constitutes an important part of our bank's earnings. We are achieving visible results in diversifying revenue sources and expanding non-interest income, while overall profitability and cost efficiency are also improving."

Korea Citibank announced its withdrawal from the domestic consumer finance sector. Photo taken on the 19th at the Korea Citibank headquarters in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@