Citibank sets conservative loan growth target
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Lender Citibank Indonesia expects to book single-digit loan growth next year although it believes lending will pick up speed in the second half of 2017, the company’s top management said on Wednesday.
“For Citibank, we expect single-digit [lending growth]. It is better to be a bit conservative because we expect that lending will start to pick up in the third quarter,” Citibank’s CEO Batara Sianturi said.
He said Citibank was confident that the economy would improve next year, partly because it expects the funds released from the tax amnesty to flow into Indonesia’s real sector.
More liquid assets entering the country’s economy could be used to fund various projects, which would increase demand for loans, he said.
Batara said the company would focus on pushing loan growth in all segments, which include institutional banking and retail banking.
The lender’s financial report for the January-to-September period recorded that the bank’s loans decreased by 7.3 percent annually to Rp 39.07 trillion (US$2.9 billion) from Rp 42 trillion year-on-year.
Questions & Answers
Q.What is the specific target for Citibank Indonesia's loan growth next year?
What is the specific target for Citibank Indonesia's loan growth next year?
Citibank Indonesia is expecting to achieve single-digit loan growth next year. The CEO stated it is better to be conservative, anticipating lending will pick up later in the year.
Q.Why does Citibank believe the economy will improve next year?
Why does Citibank believe the economy will improve next year?
Citibank is confident the economy will improve because it expects funds from the tax amnesty to flow into Indonesia's real sector. This influx of liquid assets should increase demand for loans.
Q.In which specific areas will the company focus its efforts to increase loan growth?
In which specific areas will the company focus its efforts to increase loan growth?
The company intends to focus on driving loan growth across all its segments. These include both institutional banking and retail banking.
Q.How did Citibank's loan performance for the first nine months of this year compare to the previous year?
How did Citibank's loan performance for the first nine months of this year compare to the previous year?
From January to September, the bank's loans decreased by 7.3 percent annually. This took the total from Rp 42 trillion to Rp 39.07 trillion (US$2.9 billion).
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