Friday, 25 September 2020 | 21:04 WIB

Citibank Indonesia Obtains Net Profit of IDR1.4 Trillion in First Half of 2020

Batara Sianturi, Chief Executive Officer (CEO) of Citibank N A, Indonesia (special)

JAKARTA, NETRALNEWS.COM - Citibank N A, Indonesia (Citibank) has obtained net profit of IDR1.4 trillion in the first semester of 2020. In that period, Citibank increased its credit loss reserves, reflecting a decline in the macroeconomic outlook as a result of the COVID-19 pandemic.

However, Batara Sianturi, Chief Executive Officer (CEO) of Citibank N A, Indonesia, said the company was still able to see positive performance, including Return on Equity and Return on Assets of 15.5% and 4%, respectively.

He also explained that in the midst of economic uncertainty, Citibank still had a very good level of capital adequacy, with Capital Adequacy Ratio (KPMM) of 26%, while third party funds rose 8.4% to IDR59 trillion.

Citibank still has an excellent level of liquidity with a relatively stable Loan to Deposit (LTD) ratio of 78.5%, and Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) of 232% and 132%, respectively.

In addition, Citibank also continues to maintain credit quality, with the company reporting Gross and Net NPLs of 2.5% and 0.3%, respectively.

"In the midst of a situation due to this pandemic, we are committed to continuing to maintain the level of company liquidity. Currently our balance sheet has the capacity to continue to serve and support the financial needs of our customers," Batara said.

In the line of Institutional Banking, Citibank continues to assist its clients in navigating the volatility in the market, and is selected as a stable partner in the current economic environment.

In Markets and Securities Services, the company supports its clients by leveraging the Citi Velocity platform and electronic capabilities.

For the Treasury and Trade Solutions division, Citi works closely with its clients to maintain their operations, manage their supply chains, and optimize their working capital and liquidity.

Meanwhile, in Consumer Banking, Citibank and Garuda Indonesia have again strengthened their cooperation in the Garuda Indonesia Citi Card (GICC) service through additional benefits and loyalty program features in the Garuda Indonesia Citi Card.

In the midst of the current limited mobility of society, Citibank also communicates the use of digital channels for customers to carry out daily banking transactions. This contributed to the 76% growth in terms of Citi Mobile usage year-on-year until July 2020.

For information, Citibank also held various Economic Outlook seminars for clients and investors, delivered by Citi Indonesia Chief Economist Helmi Arman.

In his presentation, Helmi explained that the normalization of economic activities would continued in the third quarter. Meanwhile, the risk of withdrawal of portfolio capital flows, such as in the first quarter of 2020, is predicted to have subsided.

The banking sector is also expected to remain healthy and ready to support the economic recovery after the restructuring phase is completed.

"The economic recovery will begin with the normalization of retail spending, and are in the form of daily necessities. The normalization of spending on durable goods of high value will follow later, as consumer confidence levels recover and the availability of credit improves," Helmi said in a press release, on Thursday (08/14/2020).

He also said that banking capital would be well maintained even though currently facing a wave of credit restructuring.

"Of course, credit restructuring will affect the performance and profitability of banks in the short term, but capital will not be eroded significantly. The banking capital ratio was quite high when it entered the pandemic period. Banking will still be able to support the economy during the recovery period," he added.