Korea Citibank Reports 277.6 Billion KRW Net Profit Last Year, Up 90% YoY

Korea Citibank announced on the 28th that it recorded a net income of 277.6 billion KRW last year. Total revenue was 1.1236 trillion KRW. Net income and total revenue increased by 90% and 16.1%, respectively, compared to the previous year.

Non-interest income rose 101.2% year-on-year to 262.9 billion KRW, driven by increased income from foreign exchange, derivatives, and securities. Interest income remained similar to the previous year at 860.7 billion KRW, despite an improvement in the net interest margin (NIM), due to a decrease in loan assets in the consumer finance sector.

Last year’s expenses decreased by 4.7% year-on-year to 625.4 billion KRW, mainly due to reduced personnel costs. Credit costs increased by 39.6% to 136.1 billion KRW, which Citibank explained was primarily due to an increase in bad debt write-offs amid a general deterioration in market credit conditions.

As of the end of December last year, customer loan assets stood at 15 trillion KRW, down 26.4% year-on-year, mainly due to the phased discontinuation of consumer finance. Deposits decreased by 24.8% year-on-year to 18.8 trillion KRW. The loan-to-deposit ratio as of the end of December was 52.3%.

The BIS capital adequacy ratio and common equity tier 1 ratio were 32.59% and 31.51%, respectively, rising by 11.87 percentage points and 11.68 percentage points compared to 20.72% and 19.83% at the end of the previous year. Return on assets and return on equity were 0.60% and 4.78%, respectively, up 0.32 percentage points and 2.17 percentage points from 0.28% and 2.61% the previous year.

Meanwhile, Korea Citibank held its 41st regular shareholders’ meeting on the 28th at its headquarters on Saemunan-ro, Jongno, Seoul, reappointing outside directors and audit committee members Jeong Min-ju, Ji Dong-hyun, Min Seong-gi, and Kim Min-hee for one-year terms. Dividends were decided at 138.7 billion KRW (436 KRW per common share). Due to the shareholding structure, all dividends are sent to the headquarters. The largest shareholder is Citibank Overseas Investment Corporation in the U.S., wholly owned by Citigroup, with a 99.98% stake.

President Yoo Myung-soon said, “Thanks to the successful strategic restructuring of the revenue model and the solid growth of the corporate finance division, both profitability and cost efficiency have greatly improved compared to the previous year.” He added, “Going forward, we will continue to strengthen risk management and internal controls, and focus on creating future growth engines centered on corporate finance, leveraging Citigroup’s global network and differentiated financial services.” He also stated, “We will strive to improve the quality of financial consumer protection and thoroughly fulfill our responsibilities as a corporate citizen.”