Citibank Korea recorded the largest quarterly net profit on record, surpassing its first-quarter bottom line. Growth in noninterest revenue centered on corporate finance, including foreign exchange, derivatives, and securities, led the improvement in results.
Citibank Korea said on the 14th that net profit for the second quarter (April–June) was 186.8 billion won. That was up 86% from the same period a year earlier (100.7 billion won).
First-half net profit was 319.6 billion won, up 75% from the first half of last year (183.1 billion won). It was also the largest net profit on record on a half-year basis.
Second-quarter total revenue was 368.2 billion won, up 27% from the same period last year (291 billion won).
Profitability metrics also improved. The second-quarter return on assets (ROA) was 1.23% and return on equity (ROE) was 13.38%, up 0.41 percentage points (p) and 6.09 p, respectively, from a year earlier.
By contrast, the BIS capital adequacy ratio and the common equity tier 1 ratio were 28.24% and 27.37%, respectively, down 7.04 p and 6.94 p from the same period last year. Continued market volatility and a larger scale of derivative assets appear to have increased risk-weighted assets.
Yoo Myung-soon, head of Citibank Korea, said, "Even amid a highly volatile market environment, we actively leveraged our capabilities in core business areas such as foreign exchange, capital markets, and securities services to achieve a meaningful result of recording the largest quarterly net profit on record."