Citibank Korea Reports KRW 456.8 billion in Net Income for 2011
CKI’s revenues in the fourth quarter 2011 were KRW 419.6 billion, up 8.3% from the fourth quarter of 2010 due to higher interest revenues driven by an increase in customer loans, offset by lower non-interest revenues due to lower investment product sales. Full year 2011 revenues were KRW 1,714.9 billion up 8.6% year on year with higher interest revenues offset by lower non-interest revenues. Interest revenue rose 14.1% to KRW 1,512.3 billion, driven mainly by a 6.4% increase in customer loans and a 15bp improvement in net interest margin. Non-interest revenues were down 20.3% mainly due to due to lower sales and trading gains.
Fourth quarter 2011 expenses were KRW270.7 billion, up 12.8% from the same period of 2010. The main driver of increased expenses was a higher charge related to the valuation of retirement plan future obligations as required under Korean International Financial Reporting Standards. Full year 2011 expenses were KRW 901.8 billion, 5% higher than 2011 mainly due to the retirement plan charge offset by the continuing focus on expense efficiency.
Full Year 2011 loan loss provisions & other allowances rose by KRW 169.1 billion to KRW
229.3 billion mainly due to a Loan Loss Provision reversal in 2010 and increases in other allowances for litigation. The non-performing loan (NPL) ratio improved to 1.10% from 1.36% in 2010 while NPL coverage was 187.5% up from 136.14% in 2010.
At the end of 2011, customer deposits were down 0.4% compared to the end of 2010 to KRW 34.1 trillion as CKI focused on funding optimization. Customer loans increased by 6.4% driven by increases in SME loans, mortgage loans, credit cards and trade assets. The loan to deposit ratio was 95.5% at the end of 2011.
“We are pleased with the overall performance of CKI in 2011. Customer satisfaction reached record high levels as we opened 24 Smart Banking branches and expanded our network to 11,000 ATMs. In Corporate Banking we saw strong growth in overseas sales, primarily driven by our support for Korean companies with global operations. In 2012, we will continue to focus on customer satisfaction, the efficient use of capital, strong internal controls, cost efficiency and maintaining the culture of Citibank Korea as we celebrate our 200th anniversary as a company”, said YK Ha, CEO of CKI.
Website: http://www.citibank.co.kr
Contact
Huh, Kap-Seung
Communication Dept.
Citibank Korea Inc.
+82-2-3455-2340
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5월 16일 16:15