Citibank N.A., Indonesia (Citi Indonesia) posted a Net Income of Rp1,08 trillion in 2021. The earning is lower than the same period last year, driven by lower trading income, Net Interest Income, and increase in credit impairment charge in Institutional Banking from one corporate client
Citi Indonesia reported gross NPL of 3.29%, increased from 1.66% last year, due to credit quality of one corporate client. We remain comfortable with the quality of our existing loan portfolio as we consistently maintain a prudent risk management approach in managing the impact of the pandemic. In addition, we also continue to ensure adequacy of provisions where we maintain low Net NPL which is at 0.46%.
Citibank Indonesia continue to be highly liquid with Lending to Deposit Ratio (LDR) at 63.8% and very well capitalized with Capital Adequacy Ratio (CAR) at 27%.
Citi Indonesia CEO Batara Sianturi stated, “We remain optimistic that our business will continue to improve, especially as the Indonesian government continues to expedite its COVID-19 booster vaccination effort, milder impact of Omicron variant, and continues effort to return to normal.”
“This is evident from the various progress and innovations that we have made in both our institutional and consumer banking businesses. Our accomplishments have also been recognized through the awards and accolades that we have received in 2021.”
As of December 2021, total Corporate loan grew by 6% YoY driven from strong loan growth both in Banking, Capital Markets and Advisory (BCMA) dan Commercial business.
The Global Subsidiaries Group saw an increase in market share in the multinational corporations (MNC) segment amid the challenging market climate. This was achieved through several initiatives, including the Asia-to-Asia initiative that grew by 15% during the year-to-Q4 period, when compared to prior year.
Furthermore, in Retail Banking, Citi Indonesia proudly served as the distribution partner of retail sukuk SR014 and SR015 that are being offered online. The bank also participated in the launch of the benchmark series of Indonesian Government Bonds, namely FR090, FR091 and FR092 in July 2021 to further complement the range of its product offerings.
With the current downward trend of interest rates, Citi Indonesia is recommending its customers to diversify their assets, among others on products that can provide higher yield potential.
As of December 2021, Citi Indonesia has also raised its digital investment transactions to 61%, growing by 64% compared to the same period last year. Digital investment transactions played an important role in supporting the growth of the wealth management business during the COVID-19 pandemic.