Citibank Korea Reports Q3 Net Profit of 92.7 Billion KRW, Up 24.8% YoY

Korea Citibank announced on the 14th that it recorded a net income of 92.7 billion KRW in the third quarter of this year. This represents a 24.8% increase compared to the same period last year.

Citibank's total revenue for the third quarter was 305.2 billion KRW, up 9.8% year-on-year. The bank explained that interest income (184 billion KRW) decreased by 11% due to a decline in loan assets in the consumer finance sector, but non-interest income (121.2 billion KRW), mainly from corporate finance such as foreign exchange, derivatives, and securities-related income, increased significantly by 69.8%. Expenses for the third quarter were 143.8 billion KRW, down 7.1% year-on-year due to a reduction in labor costs.

Loan loss provisions for the third quarter amounted to 40.9 billion KRW, a 53.2% increase compared to the same period last year. This was influenced by an increase in provisions due to credit rating downgrades of mid-sized and small businesses.

As a result of the phased discontinuation of the consumer finance sector, customer loan assets as of the end of September 2024 decreased by 25.1% year-on-year to 9.4 trillion KRW. Deposits decreased by 11.5% year-on-year to 18.3 trillion KRW. The loan-to-deposit ratio as of the end of September stood at 41.7%.

As of the end of September 2024, the Basel III (BIS) capital adequacy ratio and common equity tier 1 ratio were 34.22% and 33.20%, respectively, rising 6.35 percentage points and 6.38 percentage points compared to the same period last year. The return on average assets and return on equity for the third quarter were 0.89% and 6.16%, respectively, up 0.25 percentage points and 1.09 percentage points year-on-year.

Yoo Myung-soon, the bank president, stated, “Korea Citibank has achieved significant improvements in efficiency as the results of the business strategy changes we have been implementing have become visible. We have achieved excellent profitability indicators and stable financial performance, and our core corporate finance division continues to deliver solid profit growth.”

He added, “We will promote growth in corporate finance through innovation in products and services and the utilization of our global network, strengthen risk management and internal controls, and fulfill our social responsibilities as a trusted financial partner.”