Essay: Citigroup retail banking-attaining great success
As a result, these financial services provision to clients in the US and the global market has seen Citigroup to attain great success. Evidently, this success story can be seen in terms of live statistics that indicate that the group has over $2.1 trillion in assets as at December 2007, has employee base of about 332,000 employees from 50 different countries. The assets and the large number of employees usually serve clients through 2,900 retail branch locations and 1,800 consumer finance locations.
However, due to the nature of business lines and global economic challenges (Barry and Joel, 2003), Citi had exposure to the subprime mortgage industry and its crisis did not leave Citigroup financially comfortable. But instead the mortgage crisis made Citigroup to loose money suffering considerable losses in 2007. Sadly, after Citigroup various transactions involving write-offs and write-downs on many of its collateralized debt obligations and mortgage-backed securities, the net income yielded was $3.6 billion a decline from $21.5 billion representing 83 percent fall compared to previous financial year 2006 (refer to table 1).
Table1. Citigroup Income Data
|Annual income data (in millions)||2003||2004||2005||2006||2007||September 2008|
|Net Interest Income||$37,330||$41,617||$39,240||$39,488||$46,936||$40,439|
|Loan Loss Provision
Source: Citigroup Financial report, (2008), available at www.citigroup.com; retrieved on 21st January, 2009
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