2-Year Price Movement Of Citigroup Essay Examples

The year 2010 was a defining moment for Citigroup. The institution attained its most essential objective of posting affirmative net income in every quarter, returning to profitability, and attaining a $10.6 billion profit in the year. In addition, Citigroup posted a profit of $14.9 billion in its prime businesses. These will help in establishing the future of the company. The administration also common stock shares through Citigroup. This saw the citizens earning over $12 billion profit for their investments. The company also made additional advances in decreasing assets in Citi Holdings and resulted in the Holdings making up less than 20% of the company’s balance sheet. These positive factors saw Citigroup appeal to people of tremendous talent, including experienced executives to manage consumer cards and bank businesses. Also, strategies and structures were put in place to promote growth and recapture its position as a premier international bank. This paper will look at Citigroup’s risk-return analysis and assessment of its future prospects in two years.
The company is well positioned and in a strong position for the future. There was an increase in 2011 earnings compared to 2011. There company earned $11.1 billion in 2011. This was a 4% increase compared to 2010. The company’s service and consumer associated businesses continued with their exceptional performance. Many of these businesses were selected to pursue significant tasks. The company increased its lending by 14% from 2010. This also incorporated 24% rise in corporate lending. In addition, the company’s operating account balances increased by 23%. This was facilitated by stout development in Trade and Treasury Solutions. Moreover, there was an increase in international consumer banking by 5%. The net promoter scores also show customer satisfaction is increasing. This is because of experience in the company’s consumer bank.
Citigroup attained a positive working influence in Latin America during the fourth quarter of 2011. This is what was accomplished in Asia during the third and fourth quarters of operation. Deposits revenues, customer accounts, and loans each rose from the third to fourth quarters in America in the same year. The company also posted improved lending from $6 billion in 2010 to $7.9 billion in 2011. This was extremely higher than the set aim of $7 billion. Nonetheless, despite having satisfactory two years of trading, Citigroup faced a number of setbacks. The concern of a banking disaster in Europe disrupted the banking sector and reduced client activity and confidence in the whole world. Activities significantly reduced, and clients decreased their risk experiences.
The company decreased Citi Holdings assets by an extra $90 billion. In addition, 2011 saw the company’s assets increased by $3.6 billion. A large component of the expenses was due to the effect of non operating expenses and foreign exchange on the market. Also, investments contributed to the company’s overall expenses. The company has a tremendous future prospect ahead. In the face of soft market and economic mayhem over past years, the company should keep on making significant investments for the long term wellbeing of the company’s businesses. The company should invest extra amounts of money to make it reach the standards demanded by regulators and clients. A large part of money for investment should come from reengineered savings. The company should also invest on infrastructure. This will reduce the burden of redundant, overlapping, and outdated technology systems. This will make the bank extremely nimble and efficient.