Hungarian | English

Citibank Hungary's earnings before tax in 2011 rose 26.4 percent in a challenging environment

April 4, 2012

Citibank Hungary posted a HUF 16.44 billion of earnings before tax in 2011 showing a 26.4 percent increase over the previous year under local GAAP. The after tax profit of HUF 10.84 billion absorbing the special bank levy resulted in a return on assets (ROA) of 1.5% on total assets of HUF 813.35 billion.

Batara Sianturi, Citi Country Officer for Citibank Hungary said, "Citibank Hungary rests on solid foundations. Our 2011 performance was outstanding across the Consumer, SME and Corporate Bank businesses with strong year-on-year top line growth and positive operating leverage. We have effectively optimized our expense base, and have managed the credit risks across the franchise. Our liquidity remained at a high level with one of the lowest loan to deposit ratios in the Hungarian banking sector."

"In 2011, we celebrated the 25th anniversary of our presence, ingenuity and leadership in Hungary and we are also very excited about 2012 that marks the 200th anniversary of Citi serving our clients and the community around the globe. As part of a unique global institution with an unmatched history of 200 years, global network and expertise we are offering our clients access to world-class products and services, and banking innovations available from around the world," added Mr. Sianturi.

Journalists and Citibank Hungary seniors are listening to CCO Batara Sinturi announcing Citibank Hungary's 2011 financial results and key achievements, at a press event on 4 April

Recognition from Clients and Industry Leaders

The commitment to increase service levels and enhance technology continued to be recognized by clients through record high satisfaction results in client and industry awards, including:

Corporate Banking Business

The corporate banking business remained focused in supporting large Hungarian corporations, multinationals, financial institutions and public sector entities. Capitalizing on its global footprint in 101 countries, Citi provides linkage for its clients and access to international capital markets. 2011 was a good year in all business lines: treasury, global transaction services and global banking.

Fixed Income, Currencies & Commodities

Global Transaction Services

Securities & Fund Services

Global Subsidiaries Group

Top tier local corporates and the public sector

Consumer and SME Business

In 2011, Citibank's team continued to leverage the business opportunities they identified in the challenging economic environment and their results were well balanced in the Cards, Wealth Management, Loans and SME businesses.

The distribution network was strengthened by opening a Citibank Mini Branch at the SkyCourt Terminal of the Budapest Liszt Ferenc International Airport and the marketing efforts were extended to include tailored offers to customers via their account statements – a unique solution in the Hungarian market.

Building on the 25-year tradition of innovation in Hungary, in 2011 Citibank launched a great number of innovative products and services and enhanced existing ones.

Credit Cards

The Cards business was very successful in 2011, with various product launches including unique propositions such as:

With its Internet Secure Code Service for the credit card holder customers Citibank redefined the standard of security in the market and made a significant step in achieving its goal to become the world's and Hungary's leading global digital bank.

Digital Banking

Citibank's state-of-the-art digital banking services launched last year also included:

Wealth Management

Personal Loans

SME Business

Corporate Social Responsibility Programs

Citibank is committed to being an active and supportive member of the communities in which they do business. In line with Citi's global corporate social responsibility strategy Citibank Hungary's primarily focus is on financial education and building social enterprises. They partner with NGOs in order to enhance the impact of their community programs by leveraging their partners' expertise and long-term experience. Citibank employees are volunteering their time and knowledge to support the beneficiaries of their CSR programs.

Citibank's key achievements in major long-term CSR programs:

Major financial data for Citibank Europe plc Hungarian Branch Office (as of December 31st, 2011, according to Hungarian Accounting Standards)

  million HUF % Change vs 2010
Description 2010 2011

Return on assets (ROA)

1.64%

1.50% -0.14

Profit before tax

13,010

16,441 26.37

Profit after tax

10,451

10,838 3.70

Total assets

628,603

813,353 29.39

Loans

141,624 142,642 0.72

Total consumer loans

65,814 58,616 -10.94

Total corporate loans

75,810 84,026 10.84

Deposits

343,992 404,774 17.67

Total consumer deposits

95,834 119,427 24.62

Total corporate deposits

248,158 285,347 14.99

Net interest income

31,997 31,760 -0.74
Back to Press Room