Citibank Indonesia Inks 55% Increase in H1 2016 Net Income
Jakarta. Citibank Indonesia, the local branch of US banking giant, inked a 55 percent year-on-year increase in its first half net income, thanks to healthy growth in its net interest income and improvement in operating expenses.
Citibank Indonesia's net income was inked at Rp 1.2 trillion ($91 million) for the January-June 2016 period, compared to Rp 777 billion in the corresponding period last year.
The lender said its net interest income, or income from interest charges minus the cost of paying its depositors, grew by 15 percent year-on-year in the period to Rp 2 trillion in the first half of this year.
Citi Indonesia's operating expenses other than interest has shown improvement. It added that it saw a decrease in allowance for impairment loss of financial assets, which improved the level of efficiency.
Chief executive at Citi Indonesia, Batara Sianturi, said the positive earning performance was also supported by healthy growth of its current and savings accounts, which contributes to 71.3 percent of the total third party funds as of June this year.
Citi Indonesia also reports net interest margins increased to 6.05 percent to 5.37 percent. Meanwhile, Capital Adequacy Ratio, which measures the capitalization strength of a lender, was recorded at 27.25 percent, which is an improvement by 1.42 percent from the same period last year in June 2015.
Citibank is categorized into Buku 3, that is lenders with core capital of between Rp 5 trillion and Rp 30 trillion.
Citi Indonesia CEO Batara said he was grateful for the financial result.
"I would like to express my greatest appreciations to all of our employees, business partners, customers and other stakeholders for their cooperation and trust," Batara said in a statement sent to the Jakarta Globe on Wednesday (17/08).
He added Citi Indonesia seeks to consistently implement its strategy to become a global bank "with a concept of simpler smaller, safer and stronger.”
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