[By NBC-1TV H. J Yook]Citibank Korea Inc., (CKI, CEO YK Ha, www.citibank.co.kr) today reported net income of KRW 40.5 billion for the second quarter 2012, on revenues of KRW 388.0 billion. Net income was 71.9% lower than the second quarter 2011 and 55% lower than the first quarter 2012 while revenues were 14.9% lower than the prior year period and 8.0% lower than the first quarter 2012. CKI’s Basel II Capital Adequacy Ratio and Tier 1 Capital Ratio at June 30, 2012 were 16.94% and 13.94%, respectively.

Interest revenue was down 2.4% year over year and down 4.8% from the prior quarter to KRW 373.0 billion, mainly due to worsening net interest margins of 21bps compared to both the prior quarter and prior year period and a decrease in customer loans of 1.3% year over year and 3.3% over the prior quarter. Non-interest revenues were down 56.6% year over year mainly due to lower fee income from investment products and lower trading gains and were 67.4% lower than the first quarter 2012 mainly due to lower sales & trading revenues. The 93.9% decline in non-operating revenue year over year is mainly due to a one-time equity sale gain in the second quarter 2011

Second quarter 2012 expenses were KRW 228.2 billion, up 8.4% year over year and up 5.1% from the prior quarter mainly due to a higher charge related to the valuation of retirement plan future obligations, offset by a decrease in other operating expenses. Excluding this charge, the second quarter 2012 expenses were 1.2% below the prior quarter and 1.9% above the prior year period.