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MIRA INFORM REPORT
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Report No. : |
482813 |
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Report Date : |
09.01.2018 |
IDENTIFICATION DETAILS
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Name : |
CITIBANK, N.A |
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Registered Office : |
Menara
Mandiri, Menara Mandiri II, Jalan Jend. Sudirman Kav. 54-55, Jakarta Selatan,
12910 |
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Country : |
Indonesia |
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Date of Incorporation : |
1968 |
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Legal Form : |
Limited
Liability Company, USA |
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Line of Business : |
Subject is engaged in Banking Services |
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No. of Employees : |
2,500 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Indonesia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 27 percent today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.
Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.
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Source
: CIA |
Company
name and summery
Name
of Company :
CITIBANK,
N.A. (Indonesia Branch)
A
d d r e s s :
Head Office
Menara
Mandiri, Menara Mandiri II
Jalan
Jend. Sudirman Kav. 54-55
Jakarta
Selatan, 12910
Indonesia
Phones -
(62-21) 252 9999, 3000 9999, 5290 8301, 2996 1700
Fax - (62-21) 252 9886, 5290 8899
E-mail - info@citibank.co.id
Website - http://www.citibank.co.id
Building Area - 32 storey
Office Space - 800 sq. meters
Region - Commercial
Status - Rent
Date of Incorporation :
1968
(Indonesia Branch)
Legal
Form :
Limited
Liability Company, USA
Company
Reg. No. :
Not
Available
Company
Status :
Foreign
Banking
Permit
by the Government Department :
The Ministry of Finance
No.
D.15.6.1.4.23
Dated
14 June 1968
Central Bank (Bank Indonesia)
No.
9/376/UPPB/PBD
Dated
1 July 1976
Related
Company :
None
CAPITAL
AND OWNERSHIP
Capital
Structure :
Authorized
Capital : Rp. 141,760,000,000.-
Issued
Capital :
Rp. 141,760,000,000.-
Paid
up Capital :
Rp. 141,760,000,000.-
Shareholders/Owners
:
CITIGROUP INC., New York, USA - 100%
BUSINESS
ACTIVITIES
Lines of Business :
Banking Services
Production Capacity :
None
Total Investment :
None
Started Operation :
1968 as Indonesia
Branch
Brand Name :
Citibank NA.
Technical Assistance
:
Citigroup Inc., USA
Number of Employee :
2,500 persons
Marketing Area :
Local - 100%
Main Customer :
Corporate
Market Situation :
Very Competitive
Main Competitors :
a. ABN AMRO Bank N.V.
b. HSBC
c. STANDARD CHARTERED
Bank
d. SUMITOMO Bank
Business Trend :
Growing
BANKER,
AUDITOR & LITIGATION
B
a n k e r :
Central
Bank (Bank Indonesia)
Jalan
M.H. Thamrin No. 2
Jakarta
Pusat
Indonesia
Auditor
:
KAP
Siddharta & Widjaja (KPMG)
Litigation
:
No
litigation record in our database
FINANCIAL
FIGURE
Total
Interest Income :
2014
– Rp. 4,206.2 billion
2015
– Rp. 4,687.2 billion
2016
– Rp. 5,227.1 billion
2017
– Rp. 4,109.6 billion (as per 30 September)
Net
Profit :
2014
– Rp. 2,539.6 billion
2015
– Rp. 1,445.5 billion
2016
– Rp. 2,264.2 billion
2017
– Rp. 2,186.8 billion (as per 30 September)
Payment
Manner :
Regular
Financial
Comments :
Fairly
Good
KEY
EXECUTIVES
Board of Management :
Citi Country Officer - Mr. Batara Sianturi
Compliance Director - Mrs. Yessika Effendi
Country Chief Financial Officer - Mr. Shirish Laxmishankar Trivedi
Head of Human Resources - Mr. Yardley
Head of Operations and Technology - Mr. Timothy Utama
Head of Global Markets - Mr. Sergio Rodrigo Maza
Dominiquez
Board of Commissioners :
None
Signatories :
Country
Head Manager (Mr. Batara Sianturi) which must be approved by the partners
meeting.
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
OVERALL
PERFORMANCE
CITIBANK N.A.,
Indonesia ("the Bank”) is formally established under the Ministry of
Finance No. D.15.6.3.22 dated 14 June 1968 and the Decision Letter of Bank
Indonesia in its letter No. 4/9/KEP.DIR dated 14 June 1968 to conduct general
banking and foreign exchange activities. CITIBANK, NA, Jakarta branch has been
opening since 1968 with its capital now amounting to Rp. 141,760,000,000 fully issued and paid
up, wholly holds by CITIGROUP INC., New York, USA.
CITIBANK N.A.,
Indonesia (Citibank) has been operating in 1968 engaged in general banking and
foreign exchange activities. The main activities of the Bank include corporate
and consumer banking. The Bank is located at Menara Mandiri II (previously
Citibank Tower), Jl. Jenderal Sudirman Kav. 54-55, Jakarta 12190. In performing
its activities in Indonesia, the Bank is principally governed by Law of the
Republic of Indonesia No. 7/1992 regarding Banking as amended by Law of the
Republic of Indonesia No. 10/1998. The Bank's operational activities are
conducted through the Jakarta branch and its nine sub-branches in Jakarta and
other cities in Indonesia and also one cash office in Jakarta. The Bank is a
branch of Citibank, N.A., with its headquarter in New York ("Head
Office”).
Citibank
N.A., Indonesia has been established in Indonesia since 1968. With around 3.500
employees, Citibank N.A., Indonesia proudly serves the country by providing daily
banking services, as well as corporate and investment products to our valued
customers. By asset size, Citi is one of the largest foreign banks in
Indonesia. Citibank N.A., Indonesia operates 11 branches, and over 70 ATMs in
Indonesia. We have one of the largest customer payment networks in the nation
with more than 50.000 payment points, and they are one of the largest corporate
distribution networks in the country with 4.800 locations across 34 provinces.
Citibank
N.A., Indonesia also plays an important role in citizenship and community
outreach initiatives under the umbrella name of Citi Peka (Peduli dan Berkarya,
meaning care and create something meaningful). In 2015, Citi Peka disbursed a
total of USD 900,000 from Citi Foundation to run various programs that focus
on: financial education for children, mature women and farmers group; youth
entrepreneurship and micro entrepreneurship. Over 1,500 employees volunteer
each year in Citi Peka programs.
The
bank managing several sub-branches including in Jakarta, Bandung (West Java),
Semarang (Central Java), Surabaya (East Java), Medan (North Sumatera) and
Denpasar (Bali). It serves types of banking services both in rupiah and foreign
currencies among others are current account, time insurance deposit, credit
insurance, long term and short term credits, trade services etc. Besides that, CITIBANK NA also operates
credit card system known as VISA CARD and MASTER CARD. The operation has been growing within the
last three years. It is seen from the total credit issued that in 2014 amounted
to Rp. 38,188,361 million, increased to Rp. 38,494,618 million in 2005 to Rp.
38,831,196 million in 2016. As per 30 September 2017 the total credit issued
amounted at Rp. 39,796,922 million. CITIBANK N.A., Indonesia is a medium size
of its kind in Indonesia with operation has been fluctuating in the last five
years.
The
economy in 2017 is projected to post higher growth; national level this is
expected to result from infrastructure projects, while rebound of commodity
prices will drive improvement at the global level. Government policies will
further boost the economy in next year. The Banking industry will still be
operating in a highly competitive environment especially with the emergence of
new players, the start-up financial technology companies that offer ease of
service compared to conventional banking services. To compete, banks today need
to improve, upgrade their technology system and be innovative in order to
ensure they are able provide similarly convenient services. Internet banking,
mobile banking, SMS banking and IT-based services have become banks’ standard
features, as customers demand greater ease, speed, and transaction security.
The Bank responds to these challenges by providing services tailored to the customers’
needs. The Bank has widened its network by opening new branch offices in
several locations to improve access, refined its products and services, and
enhanced the skills of its human resource.
According
to financial statement of CITIBANK NA (Indonesia Branch) that total interest
income in 2014 amounted to Rp. 4,206.2 billion with a net profit of at least
Rp. 2,539.6 billion increased to Rp. 4,687.2 billion with a net profit of at
least Rp. 1,445.5 billion in 2015 rose to Rp. 5,227.1 billion with a net profit
of at least Rp. 2,264.2 billion in 2016. As per 30 September 2017 the total
interest income amounted at Rp. 4,109.6 billion with a net profit of at least
Rp. 2,186.8 billion and projected to go on rising by at least 6% in 2018. We
observe that Citibank NA (Indonesia Branch) is supported by Citigroup Inc., of
the USA with has financially strong and sound behind it. So far, we did not
heard that the company having been black listed by the Central Bank (Bank
Indonesia). The company usually pays its debts punctually to suppliers. The
financial statement as per 31 December 2015, 2016 and as per 30 September 2017
has yet been published. We had contacted but the company very reclusive to give
financial statement.
The
management of CITIBANK N.A. (Indonesia Branch) is led by Mr. Batara Sianturi
(51) a professional manager with experience in banking services. Citibank N.A.,
Indonesia appointed Batara Sianturi as Chief Executive Officer for Citi
Indonesia in June, 2015. Previously, Batara was Chief Executive Officer for
Citi Philippines. He concurrently served as Citi Regional Head for the
Philippines and Guam. Prior to his Philippine assignment, he was the Chief
Executive Officer for Citi Hungary as well as the Regional Head for 12 other
countries in Eastern Europe. During his 27 years with Citi, he has held a
number of senior positions namely marketing Director, Retail Banking Director
and Consumer Bank – Chief Financial Officer (CFO).
Batara
earned two Bachelor of Science degrees namely in Chemical Engineering and in
Polymer/ Macromolecular Science from Case Western Reserve University, as well
as a Master of Chemical Engineering from Steven’s Institute of Technology and
an MBA degree in Finance from St. John’s University.
The
company's management is handled by professional staff in the above business.
They have wide relations with private businessmen within and outside the
country. So far, we did not hear that the management
of the company being filed to the district court for detrimental cases or
involved in any business malpractices. The company’s litigation record
is clean and it has not registered with the black list of Bank of Indonesia.
CITIBANK N.A. (Indonesia Branch) is sufficiently fairly good for business
transaction.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.34 |
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|
1 |
INR 85.89 |
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Euro |
1 |
INR 76.15 |
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IDR |
1 |
INR 0.0047 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.