Citibank NA consolidated its position as the largest foreign bank in India for FY14 in terms of assets, followed by Hongkong and Shanghai Banking Corp (HSBC), according to results announced in the Economic and Political Weekly (EPW) and releases by the banks.
Citi India’s assets at the end of FY14 stood at R1,44,981 crore with advances growing 9% year-on-year (y-o-y).
HSBC’s assets at the end of FY14 stood at R1,31,880.50 crore, growing 24.21% y-o-y. London-based Standard Chartered came in third, with assets at R1,31,000.96 crore, growing 9.38% y-o-y.
"Citibank’s performance reflects good revenue momentum, judicious expense management and a quality credit portfolio. While the all-round performance of retail has contributed to a significant share of the growth, costs have reduced through automation, technology implementation and by streamlining operational procedures,” said Abhijit Sen, chief financial officer, Citi India Subcontinent.
In terms of profitability, Citibank again remained on top and reported a net profit of R2,893 crore, registering a growth of 6.4% y-o-y, while HSBC reported a 23% y-o-y fall in net profit to R1,490.32 crore, the advertisement on June 28 in EPW showed.
HSBC’s profit was hit due to higher operating expenses, provisions and 11.79% fall in other income to R1520.89 crore. Standard Chartered too reported a net profit of R1,584.11 crore, which was down 46.4%, partly due to increased provisions. Deutsche Bank reported a net profit fall of 29.38% y-o-y to R729.46 crore on account of higher operating expenses and fall in other income.
Other income slid 48.42% y-o-y to R483.03 crore.
Foreign banks in India are not obliged to announce their earnings results, but have to mandatorily release advertisements before July-end.
Other foreign banks, such as Bank of America (including Merril Lynch) and Barclays, too reported a rise in net profit. UK-based Barclays in India reported a net profit of R382 crore in FY14 compared to the loss of R56 crore in FY13. Bank of America reported a 49.9% y-o-y growth in net profit to R703.5 crore. Bank of America’s profit was boosted by a total income rise of R2,367.4 crore, up 30.28% y-o-y.
Barclays made an entry into India in 2007, but shut down its retail and commercial lending businesses.
The British lender is now looking to expand its wealth management service and investment banking division. Singapore-based DBS reported a nearly 99% fall in net profit to R2.24 crore