Citibank Korea's corporate banking business posts positive earnings Bank's overall net profit falls in first quarter amid phased shutdown of retail banking

Translated by Kim So-in 공개 2022-05-19 07:55:47

이 기사는 2022년 05월 19일 07:52 더벨 유료페이지에 표출된 기사입니다.

Citibank Korea generated solid earnings from its corporate banking business in the January-March quarter amid a phased shutdown of retail banking.

The South Korean unit of Citigroup generated a net profit of 46.7 billion won ($37 million) from its corporate banking business in the January-March quarter, up 28.5% from 36.3 billion won in the previous year, according to industry sources. Assets of the corporate banking business also increased 23.8% to 33 trillion won from 26.64 trillion won a year ago.

After the lender made a decision to wind down the retail banking business in phases last year, it accepted voluntary retirements from about 2,100 employees, which helped the bank reduce expenditure by 15.4% from a year earlier.

The bank’s retail banking business recorded a loss of 6.8 billion won in the first quarter, down from a net profit of 11.7 billion won in the first quarter of 2021.

Citibank Korea’s operating profit came in 53.7 billion won in the first quarter, before reflecting loan-loss reserves, down 15.6% year-over-year from 63.6 billion won. Its net profit decreased by 17.2% to 39.8 billion won from 48.1 billion won. The company will continue to run its corporate banking business in South Korea.

Citibank Korea’s return on assets (ROA) fell by 0.7% points to 0.32%. A return on equity (ROE) also declined from 3.08% to 2.95% in the first quarter.

These were lower than four major domestic banks’ average ROA of 0.72% and ROE of 11.54%. KB Kookmin Bank recorded 0.81% in ROA and 12.21% in ROE in the first three months of this year. Shinhan Bank posted 0.71% and 12.04% while Woori Bank recorded 0.72% and 12.55%. Hana bank posted 0.61% and 9.54%.

Citibank Korea said its first quarter financial performance reflected uncertainties caused by global geopolitical risks and its gradual shutdown of retail banking services. (Reporting by Seo-bin Park)
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