[By NBC-1TV H. J Yook]Citibank Korea Inc. (CEO YK Ha, www.citibank.co.kr) today reported net income of KRW 37.1 billion for the third quarter 2012, on revenues of KRW 417.5 billion. Net income was 73.4% lower than the third quarter 2011 and 8.3% lower than the second quarter 2012 while revenues were 4.8% lower than the prior year period and 7.6% higher than the second quarter 2012. CKI’s Basel II Capital Adequacy Ratio and Tier 1 Capital Ratio at September 30, 2012 were 17.40% and 14.38%, respectively. Customer deposits were up 5.4% compared to the end of September 2011 at KRW 36.0 trillion.

Interest revenue was down 9.7% year over year and down 7.1% from the prior quarter to KRW 346.3 billion mainly due to worsening net interest margins of 23bps and 40bps compared to the prior quarter and prior year period respectively and a decrease in customer assets. Non-interest revenues were down 80.9% year over year and 17.9% from the second quarter 2012 mainly due to lower fee income from investment products and lower FX/derivatives gains. Non-operating revenues were up 59.3 billion year over year mainly due to AFS sales gain in the third quarter 2012

Third quarter 2012 expenses were KRW 286.5 billion, up 34.9% year over year and up 25.5% 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 one-timers, third quarter 2012 expenses were up 2.0% from the prior quarter and 3.0% above the prior year period.