Heaptalk, Jakarta — Citibank Indonesia posted a net income of US$138 million, approximately Rp2.2 trillion, for the first nine months of this year, marking a 32% increase compared to last year.
The company revealed that the impressive growth was primarily fueled by reduced operating expenses, which contributed to an improvement in the Cost-to-Income Ratio (CIR), dropping from 59.8% last year.
The surge in Net Income positively impacted Citi Indonesia’s key financial ratios, with Return on Assets (ROA) rising to 4.1% from 2.8% in 2023 and Return on Equity (ROE) increasing to 15.4% from 12.7%. The Bank’s Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) also demonstrated resilience, maintaining robust levels at 291% and 124%, respectively, well above the regulatory minimums. Additionally, the Capital Adequacy Ratio (CAR) remained strong at 33.1%, a notable increase from 30.5% in the prior year.
“Our quarter performance resulted in solid and healthy indicators, with our interconnected businesses in Indonesia experiencing strong growth. While we continue prioritizing our Transformation within our organization, the efficiencies gained from our lower operating expenses and other efforts drove a 32% increase in Net Income. This quarter, we also launched a new solution for our clients, Electronic Trade Loan, embedded within the CitiDirect application that offers clients holistic management of their financial operations.” CEO of Citi Indonesia, Batara Sianturi, said.
Citi Indonesia’s diverse banking segments, spanning Corporate and Investment Banking, Global Network Banking, and Commercial Banking, continued to display strong revenue growth despite external economic challenges. Notably, Global Network Banking leveraged initiatives like the Asia-to-Asia corridor, fostering investment opportunities for Asian clients in Indonesia. This success highlights the benefits of Citi’s robust, well-established business framework.
Furthermore, the company’s Treasury and Trade Solutions (TTS) division also enhanced in the third quarter. Third-party deposits showed high single-digit growth, driven by doubled payment volumes primarily attributed to increased digital transactions and commercial card spending.
With an emphasis on digitization, Citi launched its Electronic Trade Loan capabilities within the CitiDirect platform. This advanced feature, equipped with a sophisticated dashboard, significantly reduces transaction processing times and minimizes paper documentation requirements for trade loan applications. The platform’s integration enables clients to streamline working capital through a single login, providing a comprehensive management system for their financial operations.
