Up 82 Percent, Citi Indonesia Earns IDR 2.5 Trillion Net Profit In 2023

Rupiah (Photo: Antara)

JAKARTA - Citibank NA Indonesia (Citi Indonesia) has achieved a net profit of IDR 2.5 trillion in 2023. This achievement increased 82 percent compared to 2022.

The increase in net profit was mainly driven by an increase in net interest income in the institutional banking business line and other non-operational income.

CEO of Citi Indonesia Batara Sianturi in Jakarta, Tuesday, said, 2023 was a historic and transformative year for Citi Indonesia after transferring the consumer banking business to UOB Indonesia in November 2023.

As part of Citigroup's strategy, this step allows Citi Indonesia to focus more on becoming a leading banking partner for institutions with cross-border needs.

Our commitment to implement strategic financial management, operational efficiency, and customer-focused solutions has helped us to continue to provide good performance in 2023, Batara quoted Antara as saying.

Meanwhile, Citi Indonesia's Head of Finance, Sujanto Su, added that the sale of consumer banking business to UOB Indonesia resulted in asset transfers and liabilities. Thus, lending and the amount of third party funds (DPK) will decrease in 2023.

"For the credit that we transferred, it was IDR 7.6 trillion. Meanwhile, for the DPK it was IDR 11.6 trillion. However, for corporate banking, our loan grew by 15 percent in 2023 compared to 2022," said Sujono.

Citi Indonesia noted that the increase in net profit in 2023 contributed to increasing return on assets (ROA) to 3.27 percent from the previous 2.27 percent in 2022 and increasing return on equity (ROE) to 14.14 percent from 9.01 percent.

Citi Indonesia's liquid cover ratio (LCR) and net stable funding (NSFR) ratio also remain strong at 267 percent and 126 percent or above the minimum provision.

Citi Indonesia also has strong capital with an obligation to provide capital (KPMM) ratio of 37.85 percent or an increase of 27.51 percent compared to 2022.

Indonesia remains an important market for Citi. Therefore, Citi will continue to use a wide global network to support the development of the financial sector in the country.

After the sale of consumer banking businesses in Indonesia, Citi said that it continues to be committed through institutional banking business (institative banking) which includes corporate banking business lines, commercial banking, markets, treasury and trade solutions as well as securities services.