Citi Indonesia posts Rp 633 billion profit

Citi Indonesia recorded Rp633 billion ( US$48 million ) in net profits in the first quarter this year, a 12 percent rise from Rp 567 billion in the same period last year.

The profit growth was driven by a 10 percent increase in net interest income, as also reflected in the bank’s total assets as of March this year that reached Rp76.5 trillion, a 6 percent year-on-year ( yoy ) surge from the corresponding period last year.

Citi Indonesia chief executive officer Batara Sianturi said,”We enjoyed higher quality of assets in the first quarter this year with our net non-performing loan [NPL] ratio staying as low as 1.15 percent,” adding that the bank’s loan loss provision ( CKPN ) had also improved by 25 percent to Rp 131 billion.

Citi Indonesia also fared well, as seen in the third-party funds that reached Rp 51.2 trillion, a 4 percent increase yoy with the current account and savings account ( CASA ) taking the lion’s share of 71 percent and therefore contributing to the sustained net interest income.

The bank also set aside a minimum capital requirement of 28.86 percent as of March, the company said in a statement.

The bank’s financing ratio for small and medium enterprises account for 9 percent of the total credit as of March this year.

“We will continue supporting Indonesia’s economic growth by implementing fund disbursements in accordance with the government’s priority programs, including in the infrastructure sector and other industries that bolster exports and loans being channeled to small and medium enterprises.”

Last year, Citi Indonesia garnered Rp 1.5 trillion in net profits with an asset increase of 14.6 percent yoy.

In the digital arena, the bank also developed innovations and services by launching four smart branches focusing on digital banking solutions.