Company Analysis Assessment 2022

Company Analysis
On
Banking and Financial System | Bank Name: - Citigroup System | Peer Name: -Bank of
America
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ........................................................................................................3
INTRODUCTION TO BANKING..............................................................................................4
ABOUT THE COMPANY........................................................................................................6
PART 1 & PART 2................................................................................................................7
CAMELS ANALYSIS............................................................................................................16
REFERENCES.......................................................................................................................20
APPENDIX...........................................................................................................................22
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Executive Summary
The Primary objective of this project is to understand various Banking jargons, to get
acquainted with the banking terminologies and industry structure. The basic task of this
assignment is to collect data from various sources of a selected bank and then analyze the
selected bank’s performance.
Citigroup has been selected to study its overall performance. Initially, various important
banking ratios have been calculated to gauge its performance. The report finally ends with
the CAMELS Analysis.
By analysing Citigroup, it can be concluded that efficiently and well managed bank
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Introduction to Banking
What is a Bank?
A bank is an organization licensed to receive deposits from depositors and make loans to
households & businesses. Banks also provide many ancillary financial services, such as
wealth management, and safe deposit boxes, credit card services etc. Generally, there are two
types of banks:
1) Commercial/retail banks is ia ibank ithat iprovides iservices ilike iaccepting ideposits,
ilending imoney, ipayment ion istanding iorder iand imany imore. iIt iearns iits iincome ifrom ifees
iand iinterest iincome. iIt ihas ia ilarge icustomer ibase iconsisting iof imany iclients.
2) Investment banks. Investment bank is an institution, that offers brokerage services,
securities, underwriting services, mergers and acquisition etc. It earns its income from fees,
commissions or profit on trading activities. It has a small customer base of few big customers
only.
In most countries, banks are regulated by the central bank or Central Government
Role of Banks in economic development
Banks play a very important and vital role in the economy development of any country. In
order to study the importance of banks, we have to understand the various functions carried
out by banks.
 Mobilizing Capitals/funds to productive investments: -Banks organize the small
savings of the depositors dispersed all over the country and make it available to
Corporates & Government, which is then used for productive purposes. If the banks
do not perform this important function, people will not be motivated to save which
would indirectly affect an economy’s growth.
 Financing Industry: - Commercial banks provide finance to various industrial
sectors. They provide short-term, medium-term and long-term loans to industries.
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 Finance to Governments: -Banks provide long-term funds to Government by
investing in Government securities and short-term funds by purchasing Treasury
Bills.
 Helps in Monetary Policies: - By changing the bank rates, several changes are made
in the money supply of a country. The central Bank of any country controls interest
rate paid by banks to its depositors and also the interest rate that can be charged by
banks on the loans granted by them.
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About the Company – Citigroup Inc.
Citigroup Inc is an American investment bank
& financial services. Citigroup was created in
1812. Citigroup is ranked as the 3rd largest
banking group in U.S.A, along with JP Morgan
Chase, Bank of America, Wells Fargo. In 2019,
It is ranked 30th on the fortune 500 list. It has it
headquarters in New York. It does its business
in more than 160 countries and handles customer accounts over 200 million. It has
approximately 214,000 employees. Citigroup Inc., a financial service organization which
delivers its products and services to a variety of different clients in more than 160 countries
like Latin America, Asia, Europe, Africa etc. It provides its services to many different types
of clients like consumers, companies, governments. Citigroup was formed through the merger
of Citicorp and Travelers Group in 1998;
The icompany ioperates ithrough itwo iparts: i-
i
 Global iConsumer iBanking i(GCB)
i
 Institutional iClients iGroup i(ICG)
The iGCB isegment ioffers ibanking iservices
ito iretail icustomers ithrough iretail ibanking,
i commercial ibanking, iCiti-branded icards, iand
iCiti iretail iservices i
The iICG isegment iprovides iwholesale ibanking iproducts iand iservices, iincluding ifixed
iincome iand iequity isales iand itrading, ifixed iincome I research, icorporate iand iconsumer
iloans, iinvestment ibanking iand iadvisory iservices, iinstitutional, ipublic isector, iand ihigh-net-
worth iclients. I
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