Heaptalk, Jakarta — Citi Indonesia announced a net income of Rp665.9 billion, approximately US$41.5 million (US$1 equals Rp16,061) in the first quarter of 2024, which grew 17% from Q1 2023. An increase in other operating revenue and an improvement in operating expenses also contributed to this growth.
According to Citi Indonesia CEO Batara Sianturi, the corporation exhibits robust performance by maintaining an increase in net income despite continued global economic uncertainty driven by geopolitical tensions and market volatility.
“Our strategic initiatives and commitment to deliver exceptional financial services and solutions have resulted in yet another strong and healthy financial performance in this period. We remain vigilant in navigating these complex market dynamics, ensuring we adapt to regulatory changes while continuing to innovate and serving our valued clients,” Batara said in his official statement.
Contribution from Commercial Bank
Cost Income Ratio (CIR) developed to 38.8% from 62.9% in 2023. The growing net income contributed to an increase in return on asset (ROA) to 3.9% from 2.9% in 2023 and an improvement in return on equity (ROE) to 13.7%. Citi Indonesia also recorded its capital adequacy ratio (CAR) remaining strong at 39.6%, an increase from 30% the previous year.
The Corporate Banking business unit continues to deliver end-to-end service to clients in local corporations, multinationals, financial institutions, and the public sector. In Q1 2024, Citi took part in several notable transactions, including the completion of a US$500 million 5-year RegS Senior Bond Offering of PT Bank Negara Indonesia. The company acted as a joint lead manager on this successful transaction.
During the first quarter, Global Network Banking also continued to record respectable revenue growth despite external challenges. This was achieved through multiple initiatives, including the performance of the Asia-to-Asia corridor, which serves Asian clients who are investing in Indonesia.
The Commercial Bank business unit also posted solid revenue growth in Q1 2024, driven by multinational clients and cash management services. The treasury and trade solutions (TTS) business saw positive growth. Transaction volumes from clients’ operational activities grew across local and foreign currencies, supported by steady third-party deposit growth.
Receiving prestigious awards
Citi Indonesia also includes one of the first banks to facilitate Bank Indonesia’s Term Deposit Program for Proceeds of Exports (DHE) Collections, end-to-end processes of export-import transactions, and cross-selling processes, particularly for Citi’s multinational clients. DHE flows grew by 35% in the first three months of this year. To support this new regulation, Citi developed an enhanced solution that enables clients to manage their funds in a simpler manner while adhering to the regulatory mandate.
The Security Services business continues to actively contribute to the development of Indonesia’s capital market, as demonstrated by Citi’s role in launching the regulator’s KYC Administration Service and Securities Sub-Account as Alternative Cash Account. The corporation is an active member of working groups and task forces initiated by the Financial Services Authority (OJK), Indonesia Central Securities Depository (KSEI), and Indonesia Clearing Guarantee Corporation (KPEI). Citi also plays a central role in the Regulatory and Market Development Committee for Custody Products led by the Indonesia Custodian Banks Association (ABKI) and Internal Control Committee at KSEI.
In the first quarter of 2024, Citi Indonesia received prestigious awards, such as Best Bank, Best Corporate Bank – Large Corp & MNCs, Most Innovative Use of Technology – Banks, and Highly Commended for Best Commercial Bank SMEs and Best Sustainable Bank, all for International categories from FinanceAsia.
The corporate was also recognized as the Best Bank for Sustainable Finance, Best Bond Adviser – International, Best Green Bond – Geothermal Energy, Best Convertible Bond, and Digital Bank of The Year from The Asset, as well as 2nd Best Foreign Bank for Corporate Bank category from Infobank magazine. Citi Indonesia’s CEO was also named 2023 Best CEO with Distinction by SWA Magazine while two female leaders have also been recognized among the 500 Most Outstanding Women 2024 in Financial Sector & SOEs by Infobank Magazine.
