CKI Reports KRW 121.9 billion in Net Income for 2Q 2009, up 13.8% YoY

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2009-08-14 13:45

Seoul--(뉴스와이어)--Citibank Korea Inc. (CKI, CEO YK Ha, www.citibank.co.kr) today announced that it reported net income of KRW121.9 billion for 2Q 2009, up 13.8% from the same period last year. Return on Assets (ROA) and Return on Equity (ROE) were 0.75% and 10.07% respectively. BIS Capital Adequacy Ratio and Tier 1 Capital under Basel II were approximately at 15.6% and 12.5% respectively.

The increase in net income was driven primarily by increased non-interest revenue and lower expense, which offset the increase in the loan loss provision.

Net interest revenue was KRW284.7 billion, down 12.1% from the previous year on narrowing net interest margin, to 2.38% from 3.05% in the same period last year, due to timing gaps in assets & liabilities re-pricing and changes in asset mix. This decrease was partially offset by an overall increase in earnings assets. Net non-interest revenues increased by KRW29.7 billion, resultant from gains the sale of securities, partially offset by a small decrease in revenue from Foreign Exchange derivatives products and fees from investment products sales.

Expenses were down 12.6% from the previous year as a result of continuous re-engineering efforts, including the early retirement program implemented in 4Q 2008. Accordingly, the expense-to-revenue ratio improved to 52.5% from 60.0% a year earlier.

Loan loss provisions rose by KRW12.1 billion from the previous year, while the Non-Performing Loan (NPL) ratio rose to 1.7%, an increase of 96 basis points from the previous period. The NPL coverage ratio exceeds 157%.

Customer loans declined 1.3% year-on-year, due to reduction in consumer loans from the mortgage loan swap with the Korean Housing Finance Corporation (KHFC), which offset an increase in Small and Medium Enterprise (SME) loans and trade assets. CKI’s deposits increased to KRW 6.7 trillion on higher demand and time deposits, which was partially offset by a decrease in Negotiable Certificate of Deposits (NCDs).

“We are pleased with CKI’s positive performance this quarter, achieved despite a challenging internal and external environment. We are cautiously optimistic that the operating environment for second half of the year will improve. CKI will continue to focus on our core business operations for long-term profitability and growth,” said YK Ha, CEO of CKI.

웹사이트: http://www.citibank.co.kr