Indonesia's best international bank 2020: Citi
Since 1968, Citi has pushed into an ever-expanding mix of sectors in Indonesia. It has gone further than its peers in commercial, consumer and corporate and investment banking. The ambition with which chief executive Batara Sianturi is branching out – and the way Citi is making a lucrative go of it – warrants this year’s best international bank honours.
With 10 branches across six big cities, Citi reported net income of Rp1 trillion ($68 million) in the January to March quarter.
It reported a return on equity of 22.5% during the same period. That compares with 20.4% from BRI, the local bank that came closest to matching Citi. Its return on assets was 5.6%, compared with 3.6% for Bank Mandiri and 3.2% for BRI.
Citi’s balance sheet also looks solid. Its capital adequacy ratio is 26.3%. Its gross non-performing loan percentage of 2.3% in the first quarter – and 0.7% for net NPLs – is right at the industry average.
The breadth of Citi’s business proved an asset given the volatile markets in 2019 and in the first three months of 2020. Citi saw a 15% jump in financial transactions volume over the last year.
It has 30% of the international bond broker dealer market and 15% of the custodian business.
Citi’s Indonesian arm boasts a well-diversified portfolio comprising 60% offshore intermediary clients and 40% onshore clients, allowing the bank to avoid a concentration of risk.
Its digital platform is one of the best in the country. The popular Citi Mobile app is adding features at a frenetic pace in the Covid-19 era to simplify shelter-in-place orders from the government.
When president Joko Widodo’s government sold $4.3 billion of bonds in April, part of a move to stabilize a Covid-19 ravaged national economy, Citi was picked as a bookrunner.
The bank also helped Indonesia’s ministry of finance execute a $900 billion loan currency amendment deal with the Asian Development Bank.