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News

23th August 2018

H1 2018 Results

  • Significant net profit growth to PLN 328.2 million – 64% YoY
  • Strong profitability ratios: ROE: 10.4%, ROA: 1.51%
  • Assisting institutional clients in reaching their goals – high dynamics of credit volumes growth in all segments: GSG clients +12%YoY, Corporate clients +7% YoY, CCB clients +3% YoY.
  • Consistent development of relationship banking – deposits grew by 5% YoY in the strategic group of customers – CPC, CitiGold & CitiPriority
  • Development of flagship products – novelties for the users of credit and debit cards: MasterCard Specials Program, Citi Specials Platform)
  • Strong leadership position in FX solutions for institutional clients – volumes up by 7% QoQ and 4% YoY; translated into unique solutions for CPC and CitiGold segment – FX Diler and Citi FX Stocks
  • Synergies in the area of e-Commerce solutions: a package offer for institutional clients facilitating growth in foreign markets, partnership programs with key e-Commerce players designed for credit card users
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We had a strong first half of the year. The Bank’s net profit grew at a double-digit pace and credit volumes growth at the level of 6% YoY confirms that we effectively support development plans of our clients. During the first six months of the year alone we issued PLN 1 billion in new financing, said Sławomir S. Sikora, President of the Management Board of Citi Handlowy. We paid out a dividend and we remain a stable and reliable bank for our investors and shareholders. We continue our strategy focused on increasing our presence in the digital space with our offer for individual customers. Our unique acquisition model helped to boost card transactions volumes by 9% QoQ. We also saw record online sales of loans – up by 130% YoY. On the corporate side we remain the leader in solutions for e-Commerce – the solutions based on the FX expertise enjoy particular popularity among customers. The FX possibilities are appreciated by the users of our Citi FX Pulse platform. The growing institutional clients volumes, which rose 12% YoY, show that foreign currencies are the answer to the uncertainty of the markets affected by the new barriers in international trade.

The net profit rose by as much as 64% YoY to PLN 328.2 million, due to higher revenue (by 14% YoY), lower cost of credit (by 24% YoY) and consistent control of operating costs (down by 1% YoY). In Q2, 2018 the Bank’s revenue grew to PLN 1,128.4 million. At the same time the Bank managed to cut expenses, which amounted to PLN 626 million, which is PLN 6.6 million less than in the corresponding period of the previous year.

Further digitization of the retail banking model

Strengthening relations with existing customers, continuous work to improve the quality of service and investments in the development of mobile banking and technologies aimed at enhancing the functionality and safety of solutions offered to customers are the main tools enabling further development of the retail banking model.

The effectiveness of the Bank’s strategy is confirmed by the growing number of digital users – the number of Citibank Online users increased by 9 thousand compared to the corresponding period of 2017. A significant increase is also observed in the area of mobile banking, where the number of users grew by 32% compared to June 2017.

Digital users (i.e. users who at least once a month use Citibank Online or Citi Mobile on different devices) in the first half of 2018 represented 73.5% of all active customers. With such a client profile, digitization of acquisition brings results: in the first six months of 2018 the Bank more than doubled its cash products sales sold through profiled offers via Citibank Online platform compared to the corresponding period of the previous year.

In addition, in the first half of 2018 the Bank introduced a range of solutions enhancing customer experience with accounts – e.g. Google Pay, enabling users to make payments using their smartphone, Express Elixir transfers and Citi Specials platform, integrating a wide array of benefits, discounts and loyalty programs. Among the strategic customers group, i.e. CPC and CitiGold, of particular popularity was CitiFX Stocks trading platform, which enables trading in securities and ETF instruments listed on the largest foreign stock exchanges.

As of the end of H1, 2018 credit cards volumes amounted to nearly PLN 2.7 billion, which means that the Bank has retained its leading position on the credit cards market in terms of the value of credit card loans, with a 25.6% market share (according to data as at the end of June 2018).

Preferred bank for clients with global growth aspirations

Citi Handlowy consistently remains the bank of first choice for companies with international aspirations, both Polish companies investing abroad, as well as global corporations operating in Poland. In Q2, 2018 institutional clients used the Bank’s credit offer – as at the end of H1, 2018 credit volumes in this segment grew by 12% YoY.

Citi Handlowy consistently holds the leading position on the FX market, one of the elements of which is Citi FX Pulse platform allowing users to individually perform transactions at a convenient time and to perform up to 300 transactions at a time with just one click. The offer of more than 130 currencies available through Citi FX Pulse together with a possibility to open foreign accounts thanks to Citi’s global network as well as a mechanism optimizing reconciliation constitute an attractive package for e-Commerce companies.

In response to the needs of clients from the institutional banking segment the Bank has designed the first in Poland business executive cards for the management and CFO, which was created based on the long experience of the corporate cards market leader and Big Data analytics. The latest product, Business Executive Card, which is unique on the Polish market, combines access to Citi banking systems with a package of benefits and privileges, among other things, fast track, priority pass, iPass, facilitating running international business in a transparent and user-friendly way.

For more information about the Q2, 2018 results see the report at www.citihandlowy.pl/Investor Relations.

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