Citigroup SWOT & PESTLE Analysis

Strengths

1. Strong financial and operational performance: Citigroup has delivered strong performance across its business franchises in 2016. The international Global Consumer Banking (GCB) division delivered modest growth and Citi’s $1 billion investment in Mexico till 2020 is further expected to boost the division’s earnings. The Institutional Clients Group segment also delivered a 10 percent revenue growth in FY16. The bank also has made significant progress in driving Common Equity Tier 1 Capital ratio towards 11.5% target by Q3-FY17. Further, the company returned close to $11.0 billion of capital to shareholders in the form of dividends and buybacks in 2016.

2. Established financial services brand with a large customer base: Citigroup has built a strong brand image for itself by consistently providing excellent customer service across the financial services domain with over 200 years of rich experience. Further the bank caters to over 200 million customers across 160 countries. The bank was widely recognized in the Awards for Excellence by Euromoney in 2017 as a leading global institution in categories such as Digital, Financial Inclusion, Markets and Transaction Services.

3. Leading credit card issuer globally: Citigroup is a leading issuer of credit cards in the world. It is the undisputed leader globally in terms of credit cards. Citi Branded Cards provide payment and credit solutions to individual consumers and small business having more than 55 million accounts as of FY16. Citi Branded Cards clocked revenues of $341 billion and an average loan portfolio of $96 billion in 2016. The growth in Citi-branded cards business was also driven by acquisition of the Costco portfolio.

The unpublished sections of the entire Citigroup SWOT analysis is available in the 'Complete Report' on purchase.

References

1. Citigroup Annual Report 2016: https://www.citigroup.com/citi/investor/quarterly/2017/ar16_en.pdf?ieNocache=146

Political

1. Significant changes because of the Brexit process: The framework monitors the transactions and business carried out by the EU countries. Since the company is operating in that part of the world, it is important for them to follow the norms accordingly. Since the time Brexit happened, norms are followed much strictly because of which an entire framework had to be revived.

2. Market fluctuations post Trump’s election: Because of so many policy changes and Trump’s decision to remove the Dodd-Frank Act, the market had started behaving negatively. There was too much fuss regarding the act and his administration which hurt the sentiments of the citizens due to which the markets remained down on that particular day and the continuing week.

Economic

1. Interest rates hike by Fed reserve: IMF sees it as a necessary measure to hike the interest rates. Though this was seen negatively by the Fed reserve, but the former is confident on the decision taken by them. Low commodity prices, including that of oil, have also put the brakes on the nation’s economy.

2. Costlier exports because of strong dollar: The strong U.S. dollar will continue to keep American exports costlier, making the nation lose on the revenues. Additionally, lower commodity prices are expected to continue, and will result in the U.S. losing the revenues from the products that are exported from USA, along with the export of raw materials.

Social

1. Varied demographics of investors: Investors are in search of good service along with good investment avenues. They are more into the sensitiveness of the fee and the transparency in it. Different people in different age groups are investing differently because of various influencers in their life. But overall everyone is in need of a sustainable investment opportunity.

The unpublished sections of the entire PESTLE / PESTEL analysis is available in the 'Complete Report' on purchase.

References

1. Citigroup Annual Report 2016: https://www.citigroup.com/citi/investor/quarterly/2017/ar16_en.pdf?ieNocache=146

2. Citigroup Annual Report 2015: https://www.citigroup.com/citi/investor/quarterly/2016/ar15c_en.pdf?ieNocache=157