Citi Handlowy is growing, as demonstrated by its revenue which is up 4% YoY. The consistent implementation of the growth strategy is possible thanks to the hard work of our motivated and talented team. By transforming the retail banking we have changed our business model to get closer to the everyday lives of our customers to be able to dynamically respond to their needs. This approach works and that is why we apply it also in respect of our corporate clients, where relationship banking along with a global offer is one of our key competitive advantages, said Sławomir S. Sikora, CEO of Citi Handlowy. It was also another quarter of good cooperation with our clients. We actively assisted them with their growth plans and foreign expansion. Since the beginning of the year we have also been helping individual customers achieve their needs and goals, thus contributing to an increase in consumption by PLN 1 billion. At the same time, corporate clients received over PLN 1.3 billion for the implementation of their projects.
In the third quarter of 2017 Citi Handlowy posted a net profit of PLN 172 million. The Bank maintained an upward trend in financing and supporting growth plans of its institutional clients. In the third quarter of 2017 the strongest growth was seen in loans to companies from the GSG portfolio, by 42% YoY, while at the same time, total corporate loans (middle-market companies, GSG and SME) went up by 8%.
The Bank also intensively supported its individual customers. The growth dynamics in loans to retail customers remains at a positive level of 5% YoY. In the wealthy and affluent customers segment, which is strategic to the Bank, the portfolio grew: 23% (Citi Private Client) and 16% (Citi Gold) over the last 12 months.
First innovative retail banking model
The modern Citibank Online banking platform launched in March 2017 has been well received by customers. Customer satisfaction with the quality of cooperation with the Bank via the internet and mobile channels, measured with NPS, increased from 4% in March this year to 28% at the end of the third quarter.
Citibank Online accessed through mobile channels is even better rated by our clients – the Mobile NPS rose from 7% in March 2017 to 51% at the end of Q3. The share of active mobile banking users in Citi Handlowy’s portfolio of retail customers amounted to 17%, up by 5 percentage points compared to the corresponding period of 2016. At the same time digital users represented 72% of transactionally active customers as at the end of third quarter of 2017, up by 1 percentage point compared to Q2, 2016.
The Bank also consistently increases the role of digital channels in its product sales. One of the drivers of online sales growth is the innovative Citibank Online. In the third quarter of 2017 the share of online credit card sales accounted for 31% of total credit card acquisition in the Bank.
The Bank remained the leading credit card issuer. Customers are increasingly eager to use this product – as at the end of the third quarter of 2017 the credit card portfolio grew by ca. 2,800 cards compared to the third quarter of 2016 (Citi Simplicity credit cards represent 87% of new acquisitions).
As at the end of September 2017 customers in Poland had 701.8 thousand credit cards with Citi Handlowy logo in their wallets.
The consistent strategy of focusing on HNWIs and affluent customers brings results, the current account balances as at the end of the third quarter of 2017 rose to more than PLN 5.7 billion, up by 16% versus the corresponding period of the previous year.
Citi Handlowy effectively addresses the needs of customers looking for solid investment options – the Bank is at the forefront in terms of the number of investment funds in its offer, including foreign funds. Investment product sales grew by 28% YoY.
Bank of first choice for clients with global aspirations
At the end of September 2017 year, thanks to activation of existing customers and new to bank acquisitions, the Bank recorded an increase in account balances of institutional clients. In the third quarter of 2017 the average monthly current account balances in the Bank increased by 23% compared to the same period of 2016, the increase in balances of accounts held in PLN amounted to 31%.
Citi Handlowy consistently implements its relationship banking strategy, the effectiveness of which is reflected by current deposits growth by 19% YoY. As at the end of third quarter of 2017 institutional clients volumes rose by 8%. This growth is mainly visible in the assets of global companies, the value of which surged by 42% over the last 12 months. The examples of significant projects in this area include co-financing of an investment worth PLN 1.3 billion for one of the Bank’s key global clients from the automotive industry. Citi Handlowy consistently supports international expansion plans of local companies – for example the Bank provided a EUR 50 million syndicated loan to the leading Polish manufacturer of ceramic tiles and bathroom equipment and accessories.
The Bank consistently holds a strong position on the FX market. The FX volumes rose by 4% QoQ. With over 130 currencies in its offer, it remains the bank of first choice for clients running their businesses all over the world. For greater convenience of the clients the Citi FX Pulse platform and CitiDirect online banking system for companies are accessed with a single logon.
More information on the Bank’s results in Q3, 2017 is available in the report published in the Investor Relations tab on the Bank’s website: www.citihandlowy.pl
