Citi Indonesia continues to grow, profit jumps 17% in Q1 2024
JAKARTA – Citibank N.A. Indonesia, or better known as Citi Indonesia, recorded an increase in net profit of up to 17% year-on-year (yoy) to IDR 665.9 billion at the end of March 2024 from IDR 568.71 billion in Q1 2023.
Based on the Citibank Q1 2024 Financial Report, Citi Indonesia's net interest income actually slipped 23.06% yoy, from IDR 1.2 trillion to IDR 936.38 billion. "However, if we look only from an institutional banking perspective, we rose 7% yoy," claimed Batara Sianturi, Chief Executive Officer (CEO) of Citi Indonesia.
In addition, efficiency in banking activities succeeded in reducing operational costs by 83.2% yoy, thereby supporting net profit growth of up to 17% yoy.
Officially divesting its consumer banking line since last year, Citi Indonesia's credit distribution also saw a slight decline of 11% yoy, from IDR 35.4 trillion in the first quarter of 2023 to IDR 31.5 trillion at the end of Q1 2024.
"Credit movements are quite flat, but this is just a matter of timing for multinational businesses. The distribution is quite well-diversified, both in the mining, power, telco and industrial sectors," continued Sianturi.
"Our credit distribution is also well-diversified between multinational businesses, financial institutions and local corporations," said Sianturi when met at the Citibank Q1 2024 Financial Performance Presentation today (22/5). Citi Indonesia is said to have around 500 multinational companies as its clients.
Citi Indonesia's business lines also reported positive performance, including commercial banking and treasury and trade solutions. However, the subsidiary group's global business lines reportedly recorded significant growth, especially performance and investment in the Asian corridor, such as China, Japan and Korea. "Even growth in China reached double digits," admitted Sianturi.
In terms of liquidity, Citi Indonesia reported an increase in Third Party Funds (DPK) of up to 6% yoy, despite losing fund sources from its consumer banking line. The loan-to-deposit ratio (LDR) was recorded at 50.73% at the end of March 2024. (ZH/LM)
