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Citibank Indonesia maintains strong profitability in first half
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A Citibank branch in Jakarta (Courtesy of Citibank NA Indonesia/-)
C
itibank Indonesia has inked a 55 percent increase in net profit in the first half of the year to Rp 1.2 trillion (US$91.53 million), from Rp 777 billion recorded in the same period last year.
The profit growth was driven by an upsurge in its net interest income by 15 percent to Rp 2 trillion at the end of the first semester, amid an improvement in operating expenses, said Citi Indonesia’s chief executive officer Batara Sianturi.
“This positive performance is owed to the increased portion of third party funds in the form of current and savings accounts. These two forms of third-party funds contributed 71.3 percent to overall third-party funds as of June 2016,” he said in a press statement in Jakarta on Wednesday.
Its net interest margin (NIM) increased to 6.05 percent from 5.37 percent in the same period last year. Meanwhile, Citibank’s net non-performing loan (NPL) is reported in the range of 0.8 percent, improving 86 basis points from the same period last year, at 1.66 percent.
The achievement is supported by a decrease in allowance for impairment loss (CKPN), especially in credit of 35 percent to Rp 397 billion, said Batara. This further improved its operation efficiency ratio (BOPO) to a lower level, at 81.71 percent.
In the same period, Citibank strengthened its capital adequacy ratio to 27.25 percent, an increase of 1.42 percent from the same period last year at 25.83 percent. The fully owned subsidiary of the US-based Citigroup is categorized as a tier-3 capital entity. (ags)
