Citi Indonesia Earns IDR 1.3 Trillion Net Profit In The Second Quarter Of 2024

Citi Indonesia (photo: Antara)

JAKARTA - Citibank NA Indonesia (Citi Indonesia) posted a net profit of IDR 1.3 trillion in the second quarter of 2024, an increase of 14 percent compared to the same period last year.

Citi noted that the growth was mainly due to operational cost efficiency which resulted in an improvement in the cost to income ratio (CIR) to 39.5 percent from 59.5 percent in the previous year.

"We managed to record strong income and solid achievements in the second quarter of this year, as evidence of the resilience and dedication of our team amid the challenges of the domestic and global economy," said Citi Indonesia CEO Batara Sianturi quoting Antara.

The increase in net profit contributed to the increase in return on assets (ROA) to 3.7 percent from the previous 2.9 percent in 2023 and the increase in return on equity (ROE) to 13.8 percent from 13.6 percent.

The liquid cover ratio (LCR) and Citi Indonesia's net stable funding (NSFR) ratio remain strong at the level of 291 percent and 164 percent or above the minimum provision.

Citi Indonesia has strong capital. This is shown in the ratio of mandatory capital supply (KPMM) which was 36.2 percent, an increase from 28.7 percent in the previous year.

In the corporate and investment banking business line, Citi continues to provide services and solutions to clients of local, multinational companies, financial institutions, and the public sector.

In the second quarter of 2024, Citi Indonesia acted as the Sole Coordinator Bank and has successfully completed an agreement for the revolving syndicated credit facility (syndipated revolving facilities) worth a total of 200 million US dollars and Rp7.5 trillion for PT Charoen Pokphand Indonesia Tbk.

Citi's global network banking also continues to record good revenue growth in the midst of challenging external conditions. This, Citi noted, was achieved through various initiatives including the performance of the Asia-to-Asia corridor that serves Asian clients in Citi who invest in Indonesia.

Our commercial bank business line also posted good revenue in the first half of this year, which comes from multinational clients and cash management solutions. This growth is proof of a strong business framework built over the years," Batara said.

The treasury and trade solutions (TTS) business grew positively in the first half of this year. According to Citi, the volume of local and foreign currency transactions grew along with the increase in domestic and cross-border instant payments, which grew by 23 percent and 5 percent respectively compared to the same period last year.

According to Citi, the securities services business also actively contributes to the development of the Indonesian capital market as seen in the company's role in launching KYC Administration Services and Securities Sub Accounts as Alternative Cash Accounts by regulators.

In addition, Citi was also appointed as the Pilot Kustodian Bank for the Indonesian Cash Management System (CMS) initiative together with PT Kustodian Sentral Efek Indonesia (KSEI).

In the second quarter of 2024, Citi was involved in several important transactions in Indonesia. Citi acted as a Joint Bookrunner in the issuance of 144A/RegS 2 billion global Sukuk for the Republic of Indonesia with 3 tenors, namely 5 years, 10 years, and 30 years (Green Sukuk Tranche).

The funds raised from the issuance of sukuk, according to Citi, will support the government to meet the needs of general financing where the 30-year-old Green Sukuk will be used exclusively to finance or refinance the Eligible SDGs Expenditures with Green and Blue Focus as stated in the Government Securities Framework of SDGs of the Republic of Indonesia.