The Jakarta Post
Private lender Citibank NA Indonesia (Citibank) recorded a net profit of Rp 2.51 trillion (US$175.7 million) last year, a 10 percent increase from the figure in 2016.
This increase was driven by a net interest income growth of 5.1 percent to Rp 4.33 trillion, and fee-based income growth of 6.6 percent to Rp 2.1 trillion, the bank said in a press release received on Monday.
Citibank’s net interest income was supported by a balanced performance in institutional banking and consumer banking, whose banking businesses accounted for 54 percent and 46 percent, respectively, of Citibank’s net interest income in 2017.
"The bank’s growth is also reflected in our total assets, which increased by 4.8 percent to Rp 75 trillion. This positive performance is supported by a sustained level of quality third-party funds in the form of demand deposits and savings,” said Citibank NA Indonesia CEO Batara Sianturi.
“These two types of deposits account for 73.51 percent of Citibank's total third-party funds as of Dec. 31. Additionally, we continue to focus on the principle of prudent lending.”
The increase in Citibank's net profit was also supported by improved credit quality. The gross and net non-performing loan (NPL) ratios at the end of December 2017 also saw improvements.
Gross and net NPL figures stood at 1.88 percent and 0.54 percent, respectively compared to 2.83 percent and 0.94 percent for the same period in the previous year. (bbn)