Korea Citibank Q2 Net Profit 101.8 Billion KRW... Up 9.7% YoY

Korea Citibank announced on the 14th that it recorded a net profit of 175.1 billion KRW in the first half of this year. This represents a 1.4% decrease compared to the same period last year. The net profit for the second quarter was 101.8 billion KRW, a 9.7% increase compared to the second quarter of last year.

As of the end of June, the Bank for International Settlements (BIS) capital adequacy ratio and common equity tier 1 capital ratio stood at 32.71% and 31.63%, respectively. These figures represent increases of 4.65 percentage points and 4.67 percentage points compared to the same period last year.

Second-quarter revenue saw a 5.7% decrease in interest income year-on-year due to a decline in consumer finance loan assets. Non-interest income, mainly from corporate finance including bonds, foreign exchange, and derivatives-related income, increased by 16.9% compared to the same period last year. As a result, total revenue rose by 0.6% year-on-year to 301.3 billion KRW. Expenses for the second quarter were 150.7 billion KRW, a 1.2% increase compared to the same period last year.

Loan loss provisions amounted to 18.3 billion KRW, decreasing by 39.7% year-on-year due to the base effect of additional reserves set aside in the same period last year.

Due to the phased discontinuation of the consumer finance division, customer loan assets as of the end of June decreased by 19.2% year-on-year to 11 trillion KRW. Deposits fell by 18.8% year-on-year to 18.4 trillion KRW. As of the end of June, the loan-to-deposit ratio was recorded at 48.8%.

The return on total assets (ROA) for the second quarter was 0.97%, and the return on equity (ROE) was 6.96%, representing increases of 0.18 percentage points and 0.47 percentage points, respectively, compared to the same period last year.

Myung Soomoon, CEO of Korea Citibank, stated, “Despite the reduction in scale due to the phased discontinuation of the consumer finance division, our profitability indicators are recording industry-leading levels based on the growth momentum of the corporate finance division. We will actively support Korean companies’ overseas expansion and foreign capital investment in Korea, and grow together with our customers as a trusted financial partner providing optimal services necessary for cross-border transactions.”