Unfolding the Citigroup Case Study – Analyzing The Third Biggest U.S Bank

Citigroup Inc., also known as Citi, is a New York-based international investment bank and financial services firm. It is one of the Bulge Bracket's nine global investment banks. Citigroup got founded by Sanford Weill (Travelers Group) and Samuel Osgood (Citicorp).

By Digital Yug Nov 15 2021 12:52PM 359 Read
Learn from the Giant Citigroup – The Diversified Financial Service Holding Firm

Citigroup Inc. is a diversified financial service holding firm that offers both consumer and business clients a wide variety of financial services. Investment banking and cash management products, corporate banking, services, and retail brokerage are among the company's offerings. Citigroup provides services to consumers all around the world. It is the third biggest bank in the United States, and it is one of the Big Four financial organizations in the country, with JPMorgan Chase, Bank of America, and Wells Fargo.

Citigroup - Company Highlights

  • Startup Name - Citigroup Inc.
  • Founders - Sanford Weill (Travelers Group), Samuel Osgood (Citicorp)
  • Founded - October 8, 1998
  • Industry - Financial services
  • Headquarters - New York, U.S
  • CEO - Michael Corbat
  • Website - www.citigroup.com

Citigroup – Top International Investment Bank

Citigroup Inc., also known as Citi, is a New York-based international investment bank and financial services firm. In 1998, the firm was founded by merging Citicorp and Travellers Group, a financial conglomerate; Travellers later split off from the corporation in 2002.

It is the third biggest bank in the United States, and it is one of the Big Four financial organizations in the country, with JPMorgan Chase, Bank of America, and Wells Fargo. As a result, it is a significant financial institution, and it got included in the list of important institutions that got referred to as "too large to fail." In addition, it is one of the Bulge Bracket's nine global investment banks.

Fun Fact : Citigroup is now placed 30th on the Fortune 500. It has more than 200 million customers and operates in over 160 countries, and it employs 204,000 people, down from 357,000 before the financial crisis of 2007–2008.

Citigroup Bank – Funding and Investments

DateAmountOrganization NameRound
Oct 15, 2020KES285M4G CapitalDebt Financing
Oct 6, 2020$20MAccessFintechSeries B
Oct 5, 2020-Genesis GlobalCorporate Round
Sep 30, 2020$20MBioCatchSeries C
Sep 22, 2020$15MCloudMarginSeries B
Sep 10, 2020$11MCapitolisVenture Round
Aug 19, 2020$4.3MPadSplitSeries A
Aug 18, 2020-SolidatusCorporate Round
May 15, 2020SGD15MSpark SystemsSeries B

Citigroup - Business Model

Citi offers various financial and banking services to corporate, institutional, and individual clients worldwide. The following are the company's primary client segments:

  • Banking Services - Consumers include the general public in its various operating areas and to whom it offers consumer banking and credit services.
  • Wealth Management – High-Net-Worth Individuals include high-net-worth individuals and family offices to whom the business provides specialized wealth management services.
  • Institution Banking – Institutions include non-profits, charities, and other organizations to whom the corporation provides wealth management and retail banking services.
  • Service to Government – Government Bodies are government agencies, public sector enterprises, and other governmental institutions to which the firm offers financial services.

Fun Fact: Citi serves around 2 million consumers in more than 160 countries across the world. Customers in North America account for most of the company's revenue, with the balance coming from Latin America, the Middle East, Asia, Europe, and Africa.

Citigroup - Revenue and Growth

Citigroup’s revenue data is as follows –

YearAmount% change from last year
2020$94.702B-7.61%
2019$103.449B+6.52%
2018$97.12B+9.17%
2017$88.962B+6.79%

Citigroup - Mergers and Acquisitions

Citigroup has bought six businesses. The BISYS Group was their most recent purchase on August 1, 2007.

Company AcquiredDateAmount
The BISYS GroupAugust 1, 2007-
Automated Trading DeskJuly 2, 2007$680M
Quilter CheviotDecember 13, 2006-
Koram BankFebruary 18, 2004-
Banamex May18, 2001-

Citigroup – Top Competitors

Some of the Citigroup top competitors are as follows:

  • Morgan Stanley
  • RBS
  • HSBC
  • Bank of America
  • Wells Fargo
  • JPMorgan Chase

Citigroup – Challenges Faced

The bank got forced to lose money due to one issue, while the other prevented it from repaying cash to shareholders.

  • Failed Assets : Analysts believe the bank still has a lot of dead weight on its balance sheet to get rid of that. Underperforming, low-return enterprises and Citi Holdings, the bank's collection of failed assets and businesses put together following the financial crisis, are two examples of this weight.
  • Legal Situation : The bank's legal situation in Mexico is the second issue that Citi analysts want to see resolved. Regulators accused Citi's affiliate, Banamex, of scamming clients a few months ago.

Citigroup Startup – Future Plans

For the next five years, a new plan got integrated into Citi's Environmental and Social Policy Framework, will focus on three main areas:

  • Low-Carbon Transition : In addition to the $164 billion the bank counted toward its $100 billion environmental financing goal, Citi wants to fund and enable an additional $250 billion in low-carbon solutions. Renewable energy, green buildings, clean technology, sustainable transportation, energy efficiency, circular economy, sustainable agriculture and land use are all part of this new objective.
  • Climate Risk : A fundamental part of a low-carbon transition is measuring, monitoring, and lowering Citi's client portfolio's climate risk and effect. Citi has been a pioneer in climate assessment and disclosure, following the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD) and issuing its first TCFD report in 2018.
  • Sustainable Operations : This plan incorporates fourth-generation operational footprint targets for GHG emissions, energy, water, waste reduction, and sustainable construction solutions. While climate science calls for a 45% reduction in global CO2 emissions by 2030, Citi is speeding up the process by 2025. It anticipates acquiring 100% renewable electricity to power sites across the world by the end of 2020.
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