Q2 Net Profit Reaches KRW 100.7 Billion
Non-Interest Income from Corporate Banking Drives Growth
Profitability and Cost Efficiency Continue to Improve
Korea Citibank announced that it posted total revenue of KRW 291 billion and a net profit of KRW 100.7 billion in the second quarter of this year. For the first half of the year, the bank recorded total revenue of KRW 559.5 billion and a net profit of KRW 183.1 billion. Compared to the first half of last year, total revenue decreased by 6.7%, while net profit increased by 4.5%.
As of the end of June this year, the BIS capital adequacy ratio and the common equity tier 1 (CET1) ratio stood at 35.28% and 34.31%, respectively. These figures represent increases of 2.57 percentage points and 2.68 percentage points, respectively, compared to 32.71% and 31.63% in the same period last year.
Total revenue for the second quarter was KRW 291 billion, down 3.4% year-on-year. Non-interest income, mainly from corporate banking activities such as foreign exchange, derivatives, and securities-related revenue, increased by 67.1% compared to the same period last year. However, interest income decreased by 37% year-on-year, primarily due to a reduction in interest-bearing assets and a decline in net interest margin.
Expenses for the second quarter amounted to KRW 137.5 billion, a decrease of 8.8% year-on-year. Credit loss expenses were KRW 22.7 billion, up 24.1% compared to the same period last year, mainly due to increased provisions in the mid-sized and small business segments.
As of the end of June, customer loans stood at KRW 7.6 trillion, a decrease of 31.2% year-on-year, mainly due to the phased discontinuation of the consumer finance segment. However, deposits increased by 4.4% year-on-year to KRW 19.2 trillion, attributable to an increase in deposits in the corporate banking segment. The loan-to-deposit ratio as of the end of June was 37%.
The return on assets (ROA) for the second quarter was 0.82%, a decrease of 0.15 percentage points year-on-year, mainly due to an increase of KRW 7 trillion each in assets and liabilities related to spot foreign exchange transactions. The return on equity (ROE) was 7.29%, up 0.33 percentage points compared to the same period last year.
Yoo Myungsoon, CEO of Korea Citibank, stated, "Non-interest income from the corporate banking segment, which we are strategically focusing on, continues to show strong growth, and our profitability and cost efficiency are steadily improving." She added, "Korea Citibank has established itself as a unique and trusted financial partner for Korean companies' global transactions, leveraging Citigroup's differentiated network. We will continue to build on our trusted relationships with customers to effectively meet their needs, while actively supporting the business activities of clients facing downside economic risks and uncertainties from trade disputes."
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