Question

provide me some thought and reaction wtih source

Looks like Citi hit the cover off the ball and exceeded investor expectations..What did they do? How have they evolved from an over-grown, over-stuffy, over-branched global bank? How does their strategy differ than their competitors, Chase, BofA and Wells... Fourth Quarter 2019: Net Income of $5.0 Billion ($2.15 per Share) Revenues of $18.4 Billion Returned $6.2 Billion of Capital to Common Shareholders ($22.3 Billion in Full Year 2019) Repurchased 69 Million Common Shares (264 Million in Full Year 2019) Book Value per Share of $82.90 Tangible Book Value per Share of $70.395

Answer 1

Citi exceeded investor’s expectations by focusing systematically on Institutional Clients Group and balancing it with their focus on the Global Consumer Banking segment. Due to this sharp focus the banking group was able to increase its fixed-income trading by 49% and was also able to expand its income from its branded credit card business.

Citi’s evolution from an over-grown, over-stuffy, and over-branched global bank to a financial powerhouse can be attributed to its strategy of catering to the needs of its retail and institutional customers in an optimal manner through proper segmentation, targeting and positioning.

Citi’s strategy differs from that of its competitors like Chase, BofA, Wells, etc. It should be noted that Citi is a global financial behemoth and is easily one of the most recognizable and one of the strongest brands in the financial industry. The company had, in the past, grown in a reckless and aggressive manner and this led to high level of inefficiencies. Recently the company shifted its strategy to optimize its operations and focus more on efficiency and providing more value to its customers. We can see that in recent past Citi streamlined its equity sales and trading business, its retail operations in Mexico and Asia. All this was done to focus more on value creation. The aspect that differentiates Citi from its competitors is that Citi focuses on driving its business by offering more value added products and services to customers on the back of its high brand value. Citi is a financial giant and the group is now making itself agile and flexible enough to drive its competitive strength and beat its competitors to gain further ground in the industry across the globe.