[News Article] KB, Citibank launch first joint branch in Daejeon
KB, Citibank launch
first joint branch in Daejeon By
Song Seung-hyun, The Korea Herald - KB Kookmin Bank, South Korea's leading
commercial bank, and Citibank Korea inaugurated a joint branch in Daejeon on
Monday, according to the Korean lender. Typically,
when a bank's branch faces challenges in sustaining its operations while demand
still exists in the area, the option of establishing a joint branch is
contemplated, an official from KB Kookmin Bank explained. The
joint branch will consist of a KB Kookmin Bank branch on the second floor of
Citibank's current Daejeon Jungang branch. "Based
on our business partnership with Citibank Korea, we will provide differentiated
financial services while maintaining customer convenience,” an KB Kookmin Bank
official said. In
June, both banks joined forces to alleviate the challenges encountered by
consumers amid Citibank's gradual retail banking shutdown process that began in
2021. As
part of this agreement, KB Kookmin Bank pledged to extend its financial
services to Citibank Korea's retail customers, starting July 3. These services
include foreign exchange and safety deposit boxes. Also,
if customers of Citibank Korea become new clients of KB Kookmin Bank, they can
access benefits as existing clients, irrespective of their past transaction
history with KB Kookmin Bank. A
Citibank Korea official added, "Since the business agreement in June,
Citibank Korea has been steadily expanding the partnership by providing space
for KB Kookmin Bank consultations within our branches, and now we operate joint
branches.” When
questioned about the selection of Daejeon as the inaugural joint branch
location with Citibank, a spokesperson from KB Kookmin Bank said, "Various
factors have been considered, including the presence of similar branches nearby
and the existence of demand that should be covered." He
added that there have been no concrete decisions made regarding the location of
a second joint branch with Citibank. This
also represents the fourth joint branch for KB Kookmin Bank. In
May of last year, it opened joint branches with Shinhan Bank in Yangju,
Gyeonggi Province, and Yeongju, North Gyeongsang Province. In
the same year, KB Kookmin Bank also opened a joint branch with BNK Busan Bank
in Geumgok-dong, Busan. Meanwhile,
in the first half of this year, Citibank Korea experienced a substantial surge
in its net profit, while its foreign banking competitor in Korea, SC Bank Korea
-- which operates both retail and corporate banking -- faced a decline. This
shift can be primarily attributed to cost dynamics. SC
Bank Korea's net profit for the first half of the year totaled 209.2 billion
won ($156.3 million), reflecting a 1.4 percent decrease compared to the 212.1
billion won reported during the same period the previous year. In
contrast, Citibank Korea's net profit exhibited remarkable growth, surging from
78.7 billion won in the first half of the preceding year to 177.7 billion won
in the first half of this year -- an increase of 99 billion won, equivalent to
125.7 percent growth. In
the first half, SC Bank Korea witnessed a notable uptick in costs, with
expenditures climbing from 332.4 billion won last year to 406.3 billion won --
a substantial surge amounting to 739 billion won. Citibank
Korea effectively curtailed its expenses, reducing them from 315.8 billion won
to 300 billion won. Source:
https://www.koreaherald.com/view.php?ud=20230822000502
2023.08.24
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