COMPANY PROFILE -Citigroup
Business Sector :Banking and Financial Services
Operating Geography :United States, North America
About Citigroup :
Citigroup is an American multinational investment banking and financial services corporation headquartered in Manhattan, New York city, USA. The company is a result of a merger between Citicorp and Travelers group in 1998. The bank has its presence in around more than 160 countries worldwide with a customer base of 200 million. It has more than 204,000 employees as of 2022. Citigroup has a 100% score on the ‘Corporate Equality Index” for 16 consecutive years. JUST Capital and Forbes recognized Citigroup as ‘America’s Most Just Companies”. Citigroup, the world's largest financial services company, announced on Friday that it will sell its consumer banking businesses in Indonesia, Malaysia, Thailand, and Vietnam for $3.6 billion as part of its global restructuring efforts. The franchises, which include Citi's retail banking and credit card businesses, will be purchased by United Overseas Bank (UOB) of Singapore. Around 5,000 Citi employees will be transferred to UOB as part of the agreement.
Citigroup’s USP lies in it being the fourth largest bank in the United States. Citi’s mission as per their annual report is to “serve as a trusted partner to its clients by responsibly providing financial services that enable growth and economic progress.”
Citigroup Revenue :
US $71.9 billion - FY ended December 31st 2021 (year-on-year growth of (-)4.77%)
US $75.5 billion - FY ended December 31st 2020
Competitive Analysis of Citigroup
The SWOT analysis for Citigroup is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Strong financial and operational performance
2. Established financial services brand with a large customer base
3. Leading credit card issuer globally
4. Strong focus on technology | 1. Majorly dependent on North American markets
2. Embroiled in scandals and frauds |
Opportunities | Threats |
1. Expanding in developing economies
2. Partnering with major brands | 1. Threats from competitors
2. Impact of Brexit |
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Detailed SWOT Analysis of Citigroup
Strength
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Weakness
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Opportunity
1. Expanding in developing economies: Citibank is present in 28 countries: However, globally several economies are growing very fast which means a world of opportunities for the bank. Citibank may reduce its dependence on US markets if it only focuses on its presence outside the USA. The company has planned to expand its services in India, as declared by Citigroup CEO India in 2021. It has increased its payments and banking services to Europe by launching SEPA Instant payments scheme in 2021. The long recovery period for some developing economies such as India may be a cause of worry but Citigroup plans to aggressively opt for expansion in the South Asian markets, which will require the bank to streamline into the demands specific to the region and the economy.
2. Partnering with more retail brands: Citibank has partnered with several retail brands including Costco, Home Depot and the Australian brand Coles. Customers nowadays evidently reach for Citi cards over other options in their wallet due to the group’s dynamic portfolio of products. The company adequately strengthened this portfolio of partnerships with the launch of the Citi Custom Cash card and renewals of key retail partnerships such as AT&T, Macy’s and Tractor Supply Company.
The remaining section under "Oppurtunity" is available only in the 'Complete Report' on purchase.
Threat
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The PESTLE analysis for Citgroup is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Significant changes because of the Brexit process
2. Market fluctuations post Trump’s election
| 1. Interest rates hike by Fed reserve
2. Uncertainty in financial markets due to dollar appreciation
3. Lowered forecasts by IMF and World Bank show weakening US economy
|
Social | Technological |
1. Varied demographics of investors | 1. Introduction of robo-advisers
2. Dedicated technology unit for rapid go-to-market |
Legal | Environmental |
1. Tax reforms
2. Changing investment regulations
| 1. Climate change impacting asset portfolios |
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Detailed Pestle Analysis of Citigroup
Political
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Economic
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Social
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Technological
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Legal
1. Tax reforms: Under the Trump administration till 2020, highly paid employees and financial institutions were impacted from the tax cuts to the non-business income group. It is not going to benefit the people at the topmost cadre of the service. The Biden administration has, in its proposed budget for FY 2023, has formulated a tax reform such that it will result in one of the highest tax rates in the developed world. These policies will create changes in the volume of transactions taking place in the Institutionalized Clients Group as well as under Wealth Management segments of the group, which will now have lower disposable income if the tax rates come into effect.
The remaining section under "Legal" is available only in the 'Complete Report' on purchase.
Environmental
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Citigroup SWOT & PESTLE Analysis Report
1. Citi to sell SE Asian consumer banking business for $3.6 bn | Economic Times - https://economictimes.indiatimes.com/news/international/business/citi-to-sell-se-asian-consumer-banking-business-for-3-6-bn/articleshow/88895458.cms
2. CitiGroup - https://en.wikipedia.org/wiki/Citigroup
3. 2021 Annual Report - https://www.citigroup.com/citi/investor/quarterly/2022/annual-report/
4. Citigroup Inc. 2022 Notice of Annual Meeting and Proxy Statement - https://www.citigroup.com/citi/investor/quarterly/2022/ar22p.pdf?ieNocache=936
5. World Economic Outlook | International Monetary Fund - https://www.imf.org/en/Publications/WEO
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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