Citibank Korea Posts Q3 Net Profit of 125.5 Billion Won... “Corporate Banking Non-Interest Income Surges”

[Financial News] Citibank Korea nearly doubled its net profit in the third quarter of this year, driven by higher non-interest income in corporate banking, including foreign exchange and derivatives. Cumulative net profit also rose 79% year on year on the back of increased non-interest income, setting a record for the first three quarters.
Financial industry sources said on the 13th that Citibank Korea posted net income of 125.5 billion won in the third quarter of this year, up 92% from the same period a year earlier. Total revenue for the same period rose 34% to 331.6 billion won.
On a cumulative basis through the third quarter, it posted net income of 445.2 billion won and total revenue of 1.0304 trillion won.
The improvement in results was driven by non-interest income, primarily from corporate banking. Non-interest income rose 64% year on year as revenue from foreign exchange, derivatives and securities increased. By contrast, interest income fell 2% due to a decline in the net interest margin (NIM).
Expenses in the third quarter totaled 151.8 billion won, down 2% from the same period a year earlier. Credit costs rose 51% to 11.3 billion won. Citibank Korea said this reflected a base effect, as provisions for loan losses in corporate banking had declined in the same period last year.
At the end of September, total loans stood at 10.4 trillion won, down 11% year on year. This reflected a decrease in reverse repo purchases and the impact of the gradual phaseout of the consumer finance business. Securities holdings rose 21% to 20.2 trillion won, while deposits increased 5% to 21.6 trillion won.
Profitability indicators also improved. In the third quarter, return on assets (ROA) was 0.80% and return on equity (ROE) was 8.67%, up 0.33 and 3.96 percentage points, respectively, from the same period a year earlier.
At the end of September, the capital adequacy ratio under Bank for International Settlements (BIS) standards was 32.20%, and the common equity Tier 1 ratio was 31.30%, down 2.20 and 2.22 percentage points, respectively, year on year. The declines reflected an increase in risk-weighted assets as derivative assets expanded amid market volatility and rising customer demand.
Kim Kyung-ho, president of Citibank Korea, said, “Citibank Korea delivered solid results in the third quarter, drawing on the strength of its core businesses, including foreign exchange, capital markets, transaction and securities services.” Kim added, “The bank demonstrated the robust fundamentals of its core businesses despite heightened market volatility and a period of adjustment.” Kim went on to say, “With rigorous risk management as our foundation, we will draw on the capabilities of Citigroup’s global network and core business divisions to continue pursuing sustainable growth alongside our customers.”
[email protected] Lee Hyun-jung Reporter