Finance: Introduction to Investments - Citigroup

Finance: Introduction to Investments
2019

Citigroup
Step 1 - Economy/Market Analysis
In the current scenario, the aim of the banks to grow and optimize has been disrupted through
the presence of regulatory change programs and demands of compliance. There are various
challenges that can be observed in the market that comprises of the shift in the self-service of
the clients, regulatory provision needing more transparency, robust growth in data and
models of new talent. In the meantime, the firm are mostly inward focused on whether it is
big or small. Moreover, with the changing scenario, the firms can ensure better services are
through the fundamental manner of competitive advantages. Banks are looking towards new
practices such as management of risk through money laundering compliance and AI.
The U.S domestic economy comprises of a strong macro environment and is present in the
form of tax reform, higher interest rates, and strong regulatory environment. Hence, Citi is
strongly established to reward shareholders. Moreover, a strong uplift in this sector will
create benefits for other sectors because the payment system will be channelized in a better
fashion.
Step – 2- Industry/Sector Analysis
Since it is a financial service industry, volatility and uncertainty will adversely influence the
market scenario. Hence, the higher stake is comprised of this industry. The revenue of the
sector is expected to enhance by 9%. The revenue increment in this industry is by dint of
Treasury and Trade solutions. The financial scenario is prone to be of less support over the
due period of time and the assets are expected to increase by $2 trillion by the end of 2019.
There is a situation that the market enters into a space of consolidation and the correction
might lead to a global slowdown.
The slowdown can impact various industries because the money flow will be in question.
The monetary policy is expected to tighten and the central bank might increase the policy
rates.
Step 3- Company Analysis
For fundamental analysis, it is important that the company should have an earning prospect. It
is because the earning prospect is considered in the case of fundamental analysis to provide a
desired course of action. The exposure of Citigroup to foreign markets is overblown because
the bank is creating growth in the areas. It has provided dividends of 1.54 that remains
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