JAKARTA – Citibank N.A. Indonesia, or widely known as Citi Indonesia, reported solid growth in its net profit performance in the first half (H1) of 2024, increasing 14% year-on-year (yoy).
It is, in fact, in contrast with Citi Indonesia’s decreased net interest income by 21.4% yoy to IDR 1,91 trillion from IDR 2,44 trillion seen in H1 2023.
This net interest income decline can be traced back to its sluggish credit distribution rate, which, according to IDNFinancial record, slipped 26.15% yoy in H1 2024. It went from IDR 43.25 trillion in H1 2023 to IDR 31.94 trillion in H1 2024.
As is known, Citi Indonesia had divested its consumer banking unit to Bank UOB in November (Q4) last year, an action of which affects its assets and liabilities record.
For example, its third-party funds (DPK) in H1 2024 also reportedly slowed down to IDR 67.56 trillion from IDR 70.32 trillion.
Thankfully, efficiency in operating expenses managed to support the bottom line, as stated by Batara Sianturi, CEO of Citi Indonesia, today (15/8) during the Press Conference of Q2 2024 Performance of Citi Indonesia.
“A decrease in operating expenses resulted in an improvement in the Cost-to-Income Ratio (CIR) to 39.5% from 59.5% in the previous year,” added Sianturi.
Citi Indonesia also reported growth across its business lines, including Global Network Banking, Commercial Bank, and Treasury and Trade Solution (TTS). The latter reported 23% and 5% yoy growth in local and foreign currency transactions.
In the end, operating expenses that significantly dropped by 76.48% yoy in H1 2024 successfully sustained its net profit growth to IDR 1.32 trillion from IDR 1.15 trillion seen in H1 2023. (ZH)