Citibank Korea Reports KRW 139.2 billion in Net Income for the third quarter 2011

SEOUL--(Korea Newswire)--Citibank Korea Inc. (CKI, CEO YK Ha, www.citibank.co.kr) today reported third quarter 2011 net income of KRW 139.2 billion, 3.3% lower than the second quarter 2011 but 20.6% higher than the third quarter 2010. Return on assets (ROA) and return on equity (ROE) were 0.75% and 7.81% (as calculated following FSS guidance) respectively. CKI’s Basel II Capital Adequacy Ratio and Tier 1 Capital Ratio at Sep 30 2011 were estimated at 16.22% and 13.30%, respectively.

CKI’s revenues in the third quarter 2011 were KRW 438.3 billion, down 3.9% from the prior quarter due to one-time gains booked in the prior quarter, offset by higher interest & non-interest revenues, and up 13.4% year on year driven by higher interest & non-interest revenues.

Interest revenue was up 0.4% over the prior quarter due to a 0.8% increase in earning assets, offset by a net interest margin contraction of 4bps. Interest revenue was 14.1% higher than the third quarter 2010 due to a net interest margin improvement of 39bps. Non-interest revenues were up 86.9% compared to the prior quarter and up 56.7% year on year mainly due to higher sales & trading revenues.

Net income for the third quarter 2011 was 3.3% lower than the prior quarter due to one-time gains booked in the prior quarter, offset by higher interest & non-interest revenues and lower loan loss provisions & allowances. Net income was 20.6% higher than the third quarter 2010, driven by higher interest & non-interest revenues, offset by higher loan loss provisions & allowances.

Third quarter 2011 expenses were KRW 212.4 billion, 0.9% higher than the prior quarter, and down 0.5% year on year. The expense-to-revenue ratio improved to 48.5% from 55.2% in the third quarter 2010 but was 2.3% higher than the second quarter 2011 due to one-time gains booked in second quarter revenues.

Loan loss provisions & other allowances were KRW 42.8 billion, KRW 12.3 billion lower than the prior quarter mainly due to litigation reserves booked in the second quarter but KRW 20.4 billion higher than the third quarter 2010 due to higher provisioning and a release in the third quarter 2010. The Non-Performing Loan (NPL) ratio was 1.12%, 33bps lower than the prior quarter and 47bps better year on year. The NPL coverage ratio was 168.6%, 36.2% better than the prior quarter and 45.2% better year on year

Customer loans increased 1.3% over the prior quarter and 8.7% year on year due to increases in corporate loans, consumer loans and credit cards. Customer deposits were up 1.2% over the second quarter and down 0.8% from a year ago as part of an ongoing funding optimization strategy.

“We are pleased with the strong third quarter performance and continued business momentum despite a challenging external environment. CKI will continue to focus on a responsible growth strategy by putting our client first, leveraging our global network & product capabilities, strong risk management, a differentiated value proposition and an enhanced network”, said YK Ha, CEO of CKI.

Website: http://www.citibank.co.kr

This is a news release distributed by Korea Newswire on behalf of this company.