CKI Reports KRW315.6 bn in Net Income for 2010
CKI’s revenues in the fourth quarter 2010 were KRW365 billion, down 0.4% from the prior quarter due to lower sales and trading revenues which were offset by higher interest revenues. Revenues though were up 13.1% year on year due to higher interest revenues and higher non-interest revenues due to some episodic transactions and higher fee income.
Full year 2010 revenues were KRW1,516.5 billion, up 1.6% compared to the full year 2009. Interest revenue rose 8.6% to KRW1,355.3 billion, driven mainly by a net interest margin improvement of 7 bps and an increase in earning assets. Non-interest revenues were down 39.2% due to lower sales and trading revenues and higher commissions paid to 3rd parties related to loan & card acquisitions, offset partially by higher fees earned from investment and bancassurance products.
Net income for the fourth quarter 2010 was 19.1% lower than the prior quarter due to an increase in expenses and loan loss provisions, but 69% above the fourth quarter 2009 due to an expansion in revenues offset by higher expenses and loan loss provisions. Full year 2010 net income increased by 1.4% from the previous year due to higher interest revenue and lower tax expense, offset by lower non-interest revenue and higher loan loss provisions.
Fourth quarter expenses were KRW219.5 billion, up 3.7% from the prior quarter and 10.1% compared to the fourth quarter 2009 mainly due to salary increases following a salary freeze in 2009. Full year 2010 expenses were KRW831.2 billion, just 0.1% higher than 2009 thanks to continued strong expense management.
Full Year 2010 loan loss provisions grew by KRW42.7 billion to KRW270.1 billion due to additional provisioning for the commercial segment and a lower release of loan loss reserves. The non-performing loan (NPL) ratio improved to 1.36% while NPL coverage stood at 136.1%.
In 2010, customer deposits grew 8.5% to KRW34.2 trillion as CKI strengthened its liquidity management and customer loans increased by 6.7% driven by increases in mortgage loans and trade assets. The loan to deposit ratio improved to 84.4% from 98.8% in 2009.
“We are satisfied with the overall performance of CKI in terms of customer satisfaction, leading indicators & financial performance given the challenges we faced in 2010. In 2011, we will focus on a sustainable, profitable growth strategy that is led by product and service differentiation, increased brand awareness and expansion of our sales network,” said YK Ha, CEO of CKI.
Website: http://www.citibank.co.kr
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Citibank Korea Inc.
82-2-3455-2330
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5월 16일 16:15