CKI Reports KRW 456.1 Bn in Net Income for 2007

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2008-02-13 16:58

Seoul--(뉴스와이어)--Citibank Korea Inc.(CKI, CEO YK Ha, www.citibank.co.kr) today reported net income of 456.1 billion won for 2007, up 40.7% from 2006. Return on assets (ROA) and return on equity (ROE) were 0.85% and 12.97% respectively. BIS capital adequacy ratio and tier 1 capital decreased to 12.80% and 11.24% respectively, due to an early redemption of $200 million in subordinated debt.

Net income increased due to a stable inflow of net interest revenue and favorable credit conditions partly offset by lower one-time gains from stock sales.

The Bank recorded revenues of 1.6 trillion won, up 11% over 2006.

Net interest revenue was 1,206.4 billion won, up 1.8 % from the previous year due to an increase in average customer loans offset by margin compression triggered by intensifying market competition. Net non-interest revenue reached to 425.2 billion, up 76.4%, from 241.0 billion won in 2006 helped by increasing sales of investment products, gains from FX derivatives products and fees from security services. % of net non-interest revenue including fee incomes rose to 26.3% from 16.4% in 2006.

Growth in sales and general expenses was contained at 5.0% from the previous year despite one-time expenses incurred due to early retirement plans. The cost to revenue ratio improved to 56.3% from 59.6% of a year earlier.

Favorable market conditions and a reduction in additional loan loss reserves pushed down CKI’s loan loss provisions to 75.3 billion won from 139.3 billion won a year ago. The Non-Performing Loans (NPL) ratio and NPL coverage ratio improved by 0.06%p and 16.2%p to 0.70% and 209.9% respectively from the previous year.

“Our 2007 performance exceeded our expectations due to a sustained increase in customer assets and gains from investment product sales and FX derivatives products,” said YK Ha, CEO of CKI.

웹사이트: http://www.citibank.co.kr