JAKARTA, NNC - Citibank N.A., Indonesia (Citibank) posted a net profit of IDR1.4 trillion at the end of the third quarter of 2018, with strong growth in loans and third party funds. Citibank N.A, Indonesia loan balance at the end of the quarter grew by 22% year-on-year to IDR48.5 trillion. Institutional Banking was the main contributor with growth seen primarily in financial, mining and manufacturing sectors.
Loan growth was accompanied by strong momentum in third party funds which increased by 10%, enabling the bank to maintain a strong lending-to-funding ratio (RIM) of 76.5%. While booking significant growth in assets, the bank’s capital adequacy and asset quality continue to be robust, with Capital Adequacy Ratio (CAR) at 23.95% and gross and net NPL at 2.37% and 0.70%, respectively.
Citibank N.A., Indonesia Chief Executive Officer Batara Sianturi on Thursday (11/8) stated, “We are proud with the double digit credit growth. Citibank N.A Indonesia’s balance sheet remains strong, well-capitalized and highly liquid.”
In Consumer Banking, Citibank has successfully launched the "Live Large” campaign, which provides Citi Telkomsel cardholders with up to 20GB more data to enjoy their digital urban lifestyle together with other special benefits such as, Buy 1 Get 1 Free XXI movie ticket, Buy 2 Get 3 Excelso Coffee, and additional bonus on T-cash balance, which consequently lifted the new acquisition of Citi Telkomsel cards by 24%. Citibank also promoted the “No Luck Required” national usage program for all Citi Credit Card customers. Simply by using their Citi Credit Card for any transactions, customers can get sure-win special prizes from IDR20 million travel voucher, Shell voucher, exclusive digital camera to Samsung S9 smartphone. In July 2018, Citigold Wealth Management Banking introduced the Intergeneration Young Successor. The workshop was designed to safeguard the legacy of Citigold customers’ next generation. At Citi, we understand the importance of safeguarding legacy for these customers. Through this workshop, we provided Citigold customers’ sons and daughters with meaningful values in managing wealth – from basic knowledge in wealth management, public speaking to leadership. These next generation Citigold customers, who are mostly university students and fresh graduates, attended the workshop. The workshop was supported by our expert partners: Ashmore Indonesia, Dale Carnegie Indonesia and Young Leadership Indonesia by McKinsey Indonesia.
Citi’s discipline in targeting the right target market resulted in a strong digital adoption. Citi Mobile users have doubled compared to last year, while Citibank Online registration growth is half than that of Citi Mobile. This confirms Citi’s mobile first strategy in its drive for digitization. Citi Mobile has also campaigned its cool features in managing credit card needs. These features are designed so that customers would spend less time managing their credit card needs and spend more time with their loved ones. The mobile features include activating cards, setting pin, checking banking statements, converting transactions into installments and enhancing credit card security by allowing users to lock the card instantly.
In Institutional Banking, Citibank officially became the first custodian bank in Indonesia to have live and running Account Operator services with a local broker client in August. The Account Operator services allow local brokers to shift their operational fixed costs to a variable cost model and minimize their operational footprint. Furthermore, by shifting their settlement activities to other parties through an Account Operator service, local brokers are able to transfer the bulk of their operational risks to their appointed custodian bank and to some extent, reduce impacts of market infrastructure/platform changes. In Markets, several Citibankers were named among Asia’s best local currency bond individuals in research, sales and trading by The Asset’s Asian Local Currency Bond Benchmark Review 2018. In Corporate and Investment Banking, our bankers continue to offer Citi's global capabilities in a holistic manner which translated to a 32% growth in Institutional Banking loan portfolio.
“We are gratified with the performance of Citibank in the third quarter of 2018 despite the recent market volatilities. We would like to express our greatest appreciation to all of our clients, business partners, employees and other stakeholders for their trust. It has always been Citi’s commitment to bring the best of Citi to our clients and customers for the remainder of 2018,” Batara concluded.