Investing in Citigroup

Satisfactory Essays
Enclosed you will find some analysis about a company that I recommend investing in. Citigroup is a very profitable company that has displayed steady financial growth since 1998 to become the largest bank in the world.

Economic Analysis:

I think the economy is growing and a definite indicator of this emerging condition is the Federal Reserves actions of increasing the prime rate one hundred basis points over the past 5 months from 4% to 5%. The Dow Jones has increased by 3.999%, the NASDAQ by 6.18%, and the S&P 500 by 3.805%, which is a strong indicator of an increasing economy that has taken place since the November presidential elections.

Industry Analysis:

Citigroup is grouped in the Finance and Investment industry, in the Commercial Banking sector. Citigroup had the highest margin of profits in US corporate history by making $49 million in profits every single day in 2003. Citigroup is the world’s largest bank and was recently voted as the most respected financial services company in the world by 1,000 CEOs of organizations ranging over 25 different countries.

Company Profile:

Citigroup was formed when Citicorp and Travelers merged in 1998. Citigroup’s headquarters are located in New York and the CEO is Charles O. Prince III and the CFO is Sallie L. Krawcheck. Citigroup offers products from credit cards, asset management, investment banking, lending, and securities brokers and traders, insurance, and domestic banking. Citigroup is a mega cap stock that is traded on the NYSE under the ticker symbol C. The company’s three largest competitors are J.P. Morgan Chase and Co., Bank of America Corp., and Deutsche Bank AG and all of these banks are grouped under the SIC code of 6021. Compared to its competitors, Citigroup ranks #1 in sales, total assets, and market cap. Citigroup finished the 2003 fiscal year with $94.7 billion in sales and 2004 sales are pacing to finish at $106.2 billion. Citigroup’s net income has increased over 32% since 2000 and they are on pace to finish the 2004 fiscal year with $15.6 billion in profits. Citigroup has over $1.4 trillion in total assets and a market cap of $238.76 billion, which has doubled since 1998. Since 1998 the dividends paid out have increased by 553.57% from $.28 in 1998 to $1.55 in 2004. The stock of Citigroup closed on December 1, 2004 at a price of $45.94, which was a growth of 3.678% during the month of November and ranked ahead of its US counterparts.
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