Heaptalk, Jakarta — Citibank, N.A., Indonesia (Citi Indonesia) reported its net income worth USD70.9 million, or approximately Rp1.1 trillion, in the third quartal this year. This outcome has increased by 31% compared to last year’s equivalent period. The company noticed this enhancement is influenced by the lower allowance cost for impairment losses on credit in the Institutional Banking lineup.
However, the Citi Bank credit portfolio experienced a decrease of 4.6% came from the Institutional Banking business lineup in Q3. In addition, the total of Citi Indonesia assets in this quarter has also enhanced by 8.3% YoY, reaching USD6.1 billion. The growth is bolstered by the capital quality of the third parties sustainably, whereby the advancement of 10.2%. This achievement can preserve a healthy Loan to Deposit Ratio (LDR) of 54%. Besides being highly liquid, Citi Bank has a robust capital adequacy level with a Minimum Capital Adequacy Ratio (CAR) of 28%.
A Gross Non-Performing Loan (NPL) of Citi Bank occupies a stable position, namely 3.30%. On the other hand, the company has also continued to ensure adequate provision for impairment losses on credit, with a lower net NPL ratio from 0.94% to 0.31% in the same period last year.
As delivered by the CEO of Citi Indonesia, Batara Sianturi, the company continued to close virtuous and robust financial performance until this third quartal amid the global and domestic economic dynamics. The net income has also continued to grow to 31% in Q3, with the maintained NPL net ratio of 0.31%. Concurrently, Batara also observed a positive development in the business and asset quality momentum. Thus, the Citi Bank team would continue implementing precautionary principles for managing risk to address potential risk factors.
In terms of the Institutional Clients Group business lineup, Citi continues to provide end-to-end services for its clients, consisting of local, multinational, financing institutions and the public sector. While from the Capital Markets and Advisory Group, Citi Indonesia has also recorded a revenue improvement of 9% in the last third quarter of 2022.
Furthermore, the Global Subsidiaries Group has continued to perform a double-digit enhancement this quarter, and the market growth in the multinational segment amid the challenging market conditions. The company has accomplished the increase through numerous initiatives, including an Asia-to-Asia scheme which climbed up to 12% in this quarter compared to the former last year.
Aligned with the Treasury and Trade Solutions business lineup, Citi noticed the rapid growth in the usage and transaction amount in the banking platform for web-based institutions, CitiDirect. Around 99% of the capital transaction delivery has been executed through this electronic platform, bringing the domestic and international transaction amount an enhancement of 59%, compared to a similar period last year.
The account opening has also been done electronically to speed up the customer acceptance process. The increase in supply chain financing assets has also elevated by 30%, supported by a digital platform to facilitate transactions between suppliers and buyers.
Moreover, Citi Commercial Bank has closed a revenue growth of 25% during the Q3, compared to the equal period in 2021. This growth is bestowed by cash management, which grows with more varied foreign exchange rates and credit. Several customer groups have contributed as the engine of revenue enhancement in recent years, including the Commercial Subsidiaries Group and the Global Digital Segment.
In the Retail Banking business lineup, Citi Indonesia has enhanced its digital investment this quarter, with a growth value of 38% compared to the former. In a similar period, the digital loan portfolio has also climbed up to 115%. While for the Credit Card and Loan business unit, this banking company has also achieved the credit card trading recovery into the pra-pandemic level.
