Glonghui, April 30 | Citibank's profit for the first quarter of 2024 fell 6.1% year-on-year, mainly because weak operating efficiency outpaced strong growth in loan growth and handling fee revenue. Net profit grew slightly better after tax, but it still declined by 1.3% year-on-year to US$25.9 billion during the period, mainly due to lower credit costs and lower effective tax rates. The return on assets and return on shareholders' equity for the first quarter of 2024 decreased by 8 basis points and 104 basis points to 0.65% and 13%, respectively. The bank set its target price for H shares at HK$5.36, giving it a “buy” rating. According to the report, although the company's revenue for the first quarter of 2024 increased by 1.4% year-on-year, its pre-provision profit decreased by 6.1% year-on-year, making it the worst ranking among major banks. The bank believes that the company's weak profit before provision was mainly due to a surge in deposit agency fees paid to its parent company, which led to a 7.1% year-on-year increase in operating expenses in the first quarter of this year. Despite this, the Postbank managed to release provisions, causing profits to fall by only 1.3% in the first quarter of this year, which is better than its peers. The bank believes that this should help justify the Postbank's modest valuation premium over large bank peers.