Citibank Korea Reports KRW 89.9 billion in Net Income for the first quarter 2012
CKI’s revenues in the first quarter 2012 were KRW 421.9 billion, up 5.2% year over year and up 0.5% from the preceding quarter. Interest revenue rose 7.6% year over year and 2.6% from the prior quarter to KRW 391.9 billion, driven mainly by a net interest margin improvement of 10bps year over year and 11bps quarter over quarter and an increase in customer loans of 4.2% year over year and 2.1% over the prior quarter. Non-interest revenues were down 8.3% year over year mainly due to lower fee income from investment products and higher card sales commissions paid but were up 51.3% from the fourth quarter 2011 driven mainly by higher sales & trading gains and higher fee income from investment and insurance products.
First quarter 2012 expenses were KRW 217.1 billion, up 4.2% year over year mainly due to higher employee compensation offset by a decrease in other operating expenses, but down 19.8% from the prior quarter driven mainly by a higher charge taken in the fourth quarter 2011 related to the valuation of retirement plan future obligations. The expense to revenue ratio was 51.5%, a 0.4% improvement over the first quarter 2011 and 13.0% better than the preceding quarter.
First quarter 2012 loan loss provisions & other allowances were KRW 86.2 billion, up KRW 72.8 billion year over year mainly due to a reserve release in the first quarter 2011 and a higher reserve build in the first quarter 2012, but down KRW 31.7 billion from the fourth quarter 2011. The non-performing loan (NPL) ratio was 1.21%, a 14bps improvement year over year and 11bps higher than the prior quarter. The NPL coverage ratio was 178.6%, 39.5% higher year over year and 9.3% lower than the prior quarter.
At the end of March 2012, Customer loans were up 4.2% year over year driven by increases in corporate loans, mortgage loans, credit cards and trade assets. Customer deposits were up 2.0% compared to the end of March 2011 at KRW 34.5 trillion.
“We had a positive operating leverage quarter in unfavorable market conditions” said YK Ha, CEO of CKI “As we celebrate Citigroup’s 200th anniversary in 2012, we will continue to focus on customer satisfaction, maintaining strong capital and liquidity ratios and improving expense efficiency”.
Website: http://www.citibank.co.kr
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5월 16일 16:15