Citi Indonesia scores IDR750 billion net income in first half
JAKARTA - Citibank, N.A., Indonesia (Citi Indonesia) reported Net Income of IDR 750 billion for the first half of 2022, which is 63% higher compared to the prior-year period. This increase is primarily driven by lower credit impairment charge in Institutional Banking.
Citi’s loan portfolio grew by 9.8% year-on-year in the first semester of 2022 to IDR 43.7 trillion. The Institutional Banking business was the main contributor, with growth seen primarily in manufacturing and financial intermediary sectors.
The growth in Citi’s loan portfolio is supported by a sustained level of quality third-party deposits, which increased by 11.1%, enabling the Bank to maintain a healthy Loan to Deposit Ratio (LDR) of 64%. Aside from being highly liquid, Citi Indonesia also continues to be well capitalized with a Capital Adequacy Ratio (CAR) at 26%.
Citi Indonesia reported an improvement in gross Non-Performing Loan (NPL) from 3.61% to 2.86% from the prior-year period. This reflects an improvement in asset quality. We are confident that the quality of our existing loan portfolio remains in good condition as we consistently maintain a prudent risk management approach in overcoming the impact of the pandemic. In addition, we also continue to ensure adequate credit loss provisions, where we maintain a low Net NPL ratio of 0.26%.
CEO Citi Indonesia, Batara Sianturi, stated, “We continue to deliver strong financial performance in the first half of the year amidst the volatile global market environment. Net profit accelerated in the first half of 2022, while business momentum and asset quality improved. Indonesia remains a key market for Citi and we will continue to support our clients to accelerate the economic recovery and growth for the country”.
In the Institutional Clients Group (ICG), Citi continued to deliver end-to-end service and solutions to clients in local corporations, multinationals, financial institutions, and the public sector. As of the Second Quarter 2022, the number of Institutional group loans managed to grow by IDR 4.1 trillion or 13% year-on-year compared to the prior year period driven by credit growth in the Banking, Capital Markets and Advisory (BCMA) and Commercial lines. (LM)