Profits skyrocketed to double digits, Citi's net profit reaches IDR 2.2 trillion as of September
JAKARTA – Citibank N.A. Indonesia, or what is usually called Citi Indonesia, managed to record a net profit increase of 32% year-on-year (yoy) at the end of September 2024. This increase was driven by operational expense efficiency, which was indicated by the cost-to-income ratio (CIR) which improved to 41.9% from 59.8%.
As of September (9M) 2024, Citi Indonesia only recorded credit distribution of IDR 30.5 trillion. This figure is much smaller than the credit disbursed in 9M 2023, which reached IDR 42.84 trillion. Batara Sianturi, CEO of Citi Indonesia, admitted that bank credit in the third quarter faced many challenges.
"Indeed, we see many challenges, yes, in terms of long-term investment. They spend more on overdrafts and working capital," admitted Sianturi when met after the Citi Indonesia Q3 2024 Performance Press Conference today (13/11) in Senayan.
Apart from that, another factor that could influence the decline in bank credit in 9M 2024 is the transfer of assets and liabilities of Citi Indonesia's retail banking line which have been completely transferred to Bank UOB Indonesia since November 2023.
"Hopefully, with everyone, including banks, already planning for 2025, we just have to listen to our clients, what their plans are for 2025. This is one thing we hope for; More optimistic for investment, and more optimistic for working capital, as well as short term and long term credit," concluded Sianturi. (ZH/LM)