CKI Reports KRW425.9 Bn in Net Income for 2008

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2009-03-19 14:01

Seoul--(뉴스와이어)--Citibank Korea Inc., (CKI, CEO YK Ha, www.citibank.co.kr) today reported net income of KRW425.9 billion for 2008, down 9% from a year earlier following reduction in one-time gains, restructuring costs and significant rise in loan loss provisions. Return on assets (ROA) and return on equity (ROE) were 0.73% and 10.46% respectively.

Excluding one-time gains from sales of equity securities, net income for 2008 increased by 2.2% against the previous year. This was led by an increase in net interest revenue from growth in net interest margin and non-interest revenues.

Following efforts in asset-optimization, net interest margin for 2008 rose 64 bps to 3.26%, with a record 3.56% in 4Q08, while net interest revenue increased 17.2% yoy. Net non-interest revenue increased by 18.8% on higher fee income from securities fund services, insurance product sales and FX gains, in spite of a decline in fee income from investment products.

While expenses were up 5.4%, which included higher costs from an early retirement program, cost-income ratio improved by 7.4% to 49.6%, as compared to the previous year.

Loan loss provisions increased by KRW327.2 billion in 2008, due primarily to an increased in provisioning for stressed corporate customers, and an expectation of a challenging credit environment in 2009. Weakening local and global economic and credit risk factors have adversely affected the non-performing loans (NPL) ratio, which increased to 1.24%. NPL coverage ratio remained high at 197.3%.

In anticipation of a continuing difficult credit market and to strengthen its capital ratios, CKI issued over KRW 1 trillion of Tier-1 common stock and Tier-2 qualified subordinated debt in 4Q08 to its affiliated companies. BIS ratio under Basel II (Standardized Approach) was estimated at 12.71%, as compared to industry average of 12.19%. CKI’s Tier-1 ratio estimate of 10.57% is the highest in the industry.

Customer loans grew 5.4% in 2008, with corporate and public loans, including SME loans and credit cards, increasing by 14.9% and 18.2% respectively. Deposits grew 15.1% due to strong growth in demand and time deposits, as well as foreign currency deposits.

“Our focus for 2009 will be on strengthening our core franchise, improving efficiency and productivity, and tightly managing our risks.” said YK Ha, CEO of CKI.

웹사이트: http://www.citibank.co.kr