Citi Indonesia credit shrinks, net profit slips 3.1% in Q1 2025
JAKARTA – Citibank N.A. Indonesia, or Citi Indonesia, recorded a slight 3.1% year-on-year decline in net profit to IDR 645.4 billion in the first quarter of 2025, despite an 11% increase in revenue to IDR 1 trillion.
Meanwhile, Citi Indonesia’s loan disbursement slowed by 11.2% to IDR 28 trillion in the first quarter.
“In the first quarter, there was a great deal of uncertainty—especially around tariffs—which caused clients to take a wait-and-see approach,” admitted Batara Sianturi, CEO of Citi Indonesia, at the Q1 2025 Citi Indonesia performance press conference held today (26/5).
Batara further acknowledged a broader trend of credit slowdown domestically, noting that Bank Indonesia has revised its credit growth projection down to 8–11%.
As a result, Citi Indonesia may revise its credit growth target set in its initial Bank Business Plan (RBB) for this year.
“We’ll evaluate our performance in Q1 and Q2, and only then submit a revision to the OJK. Whether it aligns with the overall slowdown in the banking sector will depend on our results in Q1 and Q2,” he explained.
However, Batara emphasised that Citi’s loans have grown 2.1% since the start of the year, supported by sectors such as manufacturing, agribusiness, mining, and trade.
On the other hand, the financial and communications sectors showed slower credit growth and recorded no expansion in Q1 2025.
“If we see clarity on the tariff situation, we could see a pick-up in Q2, Q3, and Q4,” said Batara.
On the funding side, Citi Indonesia saw a decline in third-party funds (DPK). Nonetheless, the CASA ratio improved from 72.5% to 74%.
“If DPK rises but its composition is reliant on high cost-of-funds, it isn’t very healthy. So, Citi’s focus is on maintaining a low cost-of-funds, which means CASA,” Batara added.
Competition for corporate DPK is intensifying as local banks ramp up their wholesale and corporate banking segments.
Still, Batara believes Citi Indonesia retains an edge thanks to its multinational corporate client base, which now contributes 80% of the bank’s funding or liquidity.
“The strategy is how to make sure we anchor with the right client base—the strength of our client base is multinational companies—and we provide connectivity in terms of operation,” Batara said. (ZH)