Citibank Korea Reports KRW 40.5 billion in Net Income for the second quarter 2012
Interest revenue was down 2.4% year over year and down 4.8% from the prior quarter to KRW 373.0 billion, mainly due to worsening net interest margins of 21bps compared to both the prior quarter and prior year period and a decrease in customer loans of 1.3% year over year and 3.3% over the prior quarter. Non-interest revenues were down 56.6% year over year mainly due to lower fee income from investment products and lower trading gains and were 67.4% lower than the first quarter 2012 mainly due to lower sales & trading revenues. The 93.9% decline in non-operating revenue year over year is mainly due to a one-time equity sale gain in the second quarter 2011
Second quarter 2012 expenses were KRW 228.2 billion, up 8.4% year over year and up 5.1% from the prior quarter mainly due to a higher charge related to the valuation of retirement plan future obligations, offset by a decrease in other operating expenses. Excluding this charge, the second quarter 2012 expenses were 1.2% below the prior quarter and 1.9% above the prior year period.
Second quarter 2012 loan loss provisions & other allowances were KRW 76.7 billion, up KRW 21.6 billion year over year mainly due to a higher loan loss reserve build and down KRW 9.5 billion from the first quarter 2012 reflecting a release from other reserves which offset a higher loan loss reserve build. The non-performing loan (NPL) ratio was 1.29%, a 16bps improvement year over year and 8bps higher than the prior quarter. The NPL coverage ratio was 177.6%, 45.2% higher year over year and 1.0% lower than the prior quarter.
At the end of June 2012, Customer loans were down 1.3% year over year mainly due to decreases in corporate loans and trade assets, offset by higher credit card receivables. Customer deposits were up 12.5% compared to the end of June 2011 at KRW 38.0 trillion.
“CKI’s 2Q results reflect a challenging economic environment. We will focus on improving profitability, productivity and efficiency through continued re-engineering efforts as well as ongoing proactive risk management in the second half of 2012 ”, said YK Ha, CEO of CKI.
Website: http://www.citibank.co.kr
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This news is a press release provided by Citibank Korea Inc..
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2월 13일 10:59
