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Citi Handlowy with a solid beginning of the year
- Net profit surged threefold compared to 2017 – to PLN 146 million
- Steady trend of healthy profitability – ROE 10.0% vs. 8.7% in Q1, 2017; ROTE 12.5% vs. 10.9% in Q1, 2017; ROA 1.45% vs. 1.23% in Q1, 2017
- Positive growth dynamics in all revenue lines: net interest income: +9% YoY, net fee and commission income: +5% YoY, treasury operations: +73% YoY
- Consistent customer business growth – credit volumes of corporate clients up by 5% YoY
- First choice bank for eCommerce
- Retail banking is getting more and more into digital – almost half of card sales is done through digital channels, in cooperation with major eCommerce portals
It was a very good start of the year for us. Our net profit surged almost threefold compared with the corresponding period of 2017. We actively supported the implementation of the development plans of our customers, which contributed to the projected volumes growth by 5% year-on-year, said Sławomir S. Sikora, CEO of Citi Handlowy. I’m pleased that we have developed the so-called split payment solution well ahead of the entry into force of the regulation. Thanks to this our customers can now focus on growing their business.
In Q1, 2018 the Bank’s revenues grew by 21% YoY to PLN 567 million. The Bank maintained good, positive growth dynamics in all revenue lines: net interest income: +9% YoY, net fee and commission income: +5% YoY, treasury operations: +73% YoY.
Retail banking: going more and more digital
In the first quarter the Bank continued to use mobile channels to reach customers, as shown by the positive sales figures – cards activated online constitute almost half of the total product portfolio (43%), and in the area of cash loans, this ratio is almost 1:4 (23%). This period was also the time of implementation of a new sales model for asset products based on digital onboarding – at the end of March a new, simplified application form was implemented to improve user experience. A similar step taken was the use of the native features of mobile devices in the process of verifying the identity of a person in the credit process. The consumption of mobile devices remains high among the Bank’s customers; hence the natural decision to introduce GooglePay to our offer – during a period of over two months Citi Handlowy customers executed 120,000 such transactions.
The customer needs and the user experience perspective were also the driving force behind solutions in other areas – i.e. when designing a new Citi Specials platform, integrating a wide array of benefits, discounts and loyalty programs in an attractive and intuitive formula. Additionally, the platform uses an innovative chatbot mechanism, which has significantly speeded up the process of profiling a discount offer. An equally important element of the new platform are regular targeted special offers – a good example of which was the exclusive pre-sale of tickets for Beyonce’s concert.
The affluent customer segment continues to be one of the strategic areas – in the first quarter the Bank successfully developed its wealth management offer, which is illustrated by the acquisition figures: 7% up YoY in Citibank Private Client and Citigold. Worth noting is also the fact that the sales model is based on the recommendation model, where the bank acquires new customers thanks to recommendations from its existing customers.
Institutional banking: comprehensive solutions to complex needs
Thanks to the support of the global network, the best FX offer on the market and a set of unique technology solutions Citi Handlowy continues to be the first choice institution for Polish companies expanding their operations abroad, as well as international investors, who decide to develop their business in Poland. As of the end of March 2018, under the Emerging Market Champions program the Bank provided its services to as many as 426 clients, up by 3% YoY. Simultaneously, for the last three quarters the Bank has been working on enlarging the group of clients from the demanding eCommerce segment. In Q1 the group was joined by, among others, Martes Sport, one of the thirty Polish companies put on the prestigious list of "1000 companies to inspire Europe", prepared by the London Stock Exchange.
Citi Handlowy remains a key partner for its customers from the CCB and Middle Market segment. The Bank understands its role not only as a provider of a professional and reliable banking service, but also as a consultant sharing its expert knowledge with companies. A good example of this approach in the first quarter of 2018 was a wide educational campaign dedicated to the topic of Split Payment, as part of which several hundreds of customers took part in a cycle of workshops, webinars and meetings held across the country. At the same time, the Bank began the migration of accounts in accordance with the provisions of the Act well in advance, and consequently almost 75% clients from the target group have already have their target accounts ready. For the full optimization of the process the Bank provided special reporting modules and additional functionalities optimizing management of company’s finance (preventing liquidity bottlenecks).
At the beginning of the year, for yet another time in a row, the Bank also won the Ministry of Finance’s competition for the function of Treasury Securities Dealer (TSD). For years Citi Handlowy has been consistently contributing to the promotion of the Polish market and it has been actively supporting the implementation of the national debt issuance policy.
For more information about the Q1, 2018 results see the report at www.citihandlowy.pl/Investor Relations.
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