The Jakarta Post
Citi Indonesia, a wholly owned subsidiary of United States-based Citigroup Inc., looks forward to achieving double-digit loan growth amid concerns over global circumstances that might affect the company’s business.
The private lender claimed that its financial performance from January to June this year was quite good. Citi Indonesia will announce its first half results soon in August.
“The global conditions will impact Citi clients' businesses. Our clients include importers, exporters. In retail, we have credit card customers and Citigold customers; all of them will have different responses,” Citi Indonesia CEO Batara Sianturi said, referring to the global turmoil, mainly caused by the ongoing trade war between the US and China, and the Fed’s plan to lift its benchmark rate.
Citi Indonesia’s loan growth so far was contributed by institutional and retail banking segments. As of May, the lender disbursed Rp 44.35 trillion loans, up by 14.86 percent year-on-year (yoy).
For consumer banking, specifically in the wealth management business, Citi has relaunched Citigold, targeting affluent customers. It has so far gained 10,000 customers, and aims to grow the number of customers by double digits this year.
Despite satisfying loan growth, Citi’s net income from the January to May period was down by 22 percent to Rp 848.27 billion, yoy. “Our NIM [net interest margin] was pressured due to the increase in benchmark rates,” Batara said.
Citi Indonesia has not raised lending rates yet, although it increased deposit rates to 6.9 percent last week. (dmr)