CKI Reports KRW 149.8 Bn in Net Income for 1Q 2008(Up 8.1% YoY)

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2008-04-30 10:30

Seoul--(뉴스와이어)--Citibank Korea Inc.(CKI, CEO YK Ha, www.citibank.co.kr) today reported net income of 149.8 billion won for 1Q 2008, up 8.1% from a year ago. Return on assets (ROA) and return on equity (ROE) were 1.13% and 16.20% respectively. BIS capital adequacy ratio and tier 1 capital under Basel II was estimated at 10.6 % and 9.3% respectively.

A strong net income was largely driven bydespite a decrease in one-time gains from stock sales a rise in net interest revenue and a better non interest revenue as well as an effective cost control partly offset by lower one-time gains from stock sales and an increase in LLPs.

Net interest revenue was 328.4 billion won, up 15.6 % from the previous year due to a significant improvement of net interest margin by 57 bps from 2.51% in 1Q 2007 to 3.08% in 1Q 2008 together with a 3.2% increase in customer loans. Net non-interest revenue reduced by 23.4 billion, but this revenue excluding one-timers like gains from DPC shares nearly doubled, helped by gains from FX derivatives products and increasing sales of insurance products and fees from security services.

Expenses were down 1.3% from the previous year, resulting from a decrease in # of employee due to VERP and a nearly finishing integration coupled with an expense discipline. Accordingly, t, improving the cost to revenueincome ratio improved to 46.3% from 51.2% of a year earlier.

Loan loss provisions rose to 40.0 billion from 15.3 billion a year ago, stemming from an increase in loans, but the Non-Performing Loans PL (NPL) ratio and NPL coverage ratio improved by 0.02%p and 8.9%p to 0.68% and 218.78% respectively from the previous year thanks to favorable market conditions.

Customer loans grew about 900 billion YoY and 1.2 trillion QoQ, especially credit card ENRs were up 22% from the same period of the previous year, and deposits rose 170 billion over the previous quarter.

“Synergy generation started from last year has continued, and our 1Q performance exceeded our target and expectations due to a sustained increase in customer assets and non-interest revenue such as gains from FX derivatives products, insurance product sales and security services,”said YK Ha, CEO of CKI.

웹사이트: http://www.citibank.co.kr