Jakarta. Citibank, N.A., Indonesia (Citi Indonesia) reported a net income of Rp 2.5 trillion ($157.33 million) in 2023, marking an 82 percent increase from the previous year. This growth was primarily driven by higher net interest income in the Institutional Banking business and other non-operating income.

CEO of Citi Indonesia, Batara Sianturi, emphasized the strategic transformation of the bank following the sale of its consumer banking business in Indonesia. This shift allowed Citi to refocus its efforts on becoming a leading banking partner for institutions with cross-border needs.

“Our commitment to strategic financial management, operational efficiency, and customer-centric solutions has yielded robust performance in 2023. Indonesia remains an important market for Citi, and we will continue to leverage our extensive global network to support the development of the Indonesian financial sector,” said Batara in his statement.

The increase in net income also resulted in improved financial metrics, with the return on asset (ROA) rising to 3.27 percent from 2.27 percent in 2022, and the return on equity (ROE) improving to 14.14 percent from 9.01 percent. 

Additionally, Citi Indonesia’s liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) remained strong at 267 percent and 126 percent respectively, surpassing the minimum requirements. The bank's capital adequacy ratio (CAR) stood strong at 37.85 percent, representing a 27.51 percent increase compared to 2022.

The institutional banking business saw a 15 percent loan growth in 2023, mainly driven by growth in the financial intermediaries sector.

Throughout the year, Citi facilitated several notable transactions, including green bond issuance for Pertamina Geothermal Energy and a syndicated green loan for state utility company Perusahaan Listrik Negara (PLN). 

In May 2023, Citi Indonesia signed a distribution financing program of Rp 465 billion with multinational agricultural company Syngenta Indonesia. In October 2023, Citi Indonesia and Coca-Cola Europacific Partners Indonesia announced a sustainable supply chain finance deal to support both companies’ sustainability agenda.

Citi's commercial bank experienced a 25 percent year-on-year revenue growth, fueled by multinational clients and cash management solutions. In the Markets segment, collaborative ventures with Bibit.id were strategically designed to enhance public engagement in capital markets and support the government's financial inclusion agenda.

Treasury and trade solutions (TTS) recorded significant year-on-year growth, supported by transaction volume and third-party deposits. Citi also actively facilitated the Central Bank's Term Deposit Program for Proceeds of Exports (DHE) Collection.

Citi's securities services business demonstrated consistent revenue growth, particularly in Fund Services and Custody businesses. The bank actively contributed to Indonesia's capital market development by participating in various initiatives led by regulatory authorities and industry committees.
 

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