Thursday, November 2, 2017

Citi profit slides by half in Q3

DAILY NEWS Reporter
CITIBANK Tanzania net profit has slumped down by almost half after net interest income slide down by a third in this year’s quarter three.

The corporate bank, with a single branch, posted a net profit of 2.74bn/- in Q3 down from 4.90bn/- similar period last year. The profit slump, according to financial statement, was mainly attributed to dropping of net income revenue by a third to 6.61bn/- from 9.63bn/-.
The loan revenue went down after the amount lent out dropped to 176.13bn/- from 195.77bn/-. The bank, despite reducing the amount loaned out, assets grew 11.6 per cent to 659.03bn/-, thanks to increase balances with central bank and investment in government securities.
Citibank boasts one of the lowest nonperforming loans in the country after dropping to 0.1per cent in Q3 from 4.5per cent of Q2. Customer deposits have increased by 12.8 per cent to 476.57bn/- in three months to September from 413.64bn/- at the end of June.
Nevertheless, non-interest revenue increased slightly to 4.58bn/- from 4.45bn/- pushed up mainly by foreign currency dealings. On current year cumulative to September, the Citibank profit also went down by over 30 per cent to 10.62bn/- from 15.11bn/The profit slumping was due to drop of net interest income to 23.34bn/- from 28.88bn/-.
Citi is the only U.S. bank in Tanzania, where which has been operating since 1995. Citi in Tanzania is part of the Citi East African network which includes Kenya, Uganda and Zambia.

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