Citi builds core biz, but still faces issues
TEXT OF STORY
STEVE CHIOTAKIS: Citigroup today said profits topped $2.2 billion. It’s the third quarterly result in a row that showed the mega-bank’s made money. But Citigroup’s been through some bad times. It’s been trying to recover from the financial crisis by selling off businesses — brokerage house Smith Barney to name one. It’s also building up its core businesses.
Marketplace’s Alisa Roth reports where the company goes from here.
ALISA ROTH: Citigroup’s plan is to go back to old-fashioned banking.
Erik Oja follows the banking industry at Standard and Poors. He says it’ll focus more on things like investment banking, wealth management and retail customers.
ERIK OJA: They’re looking to ramp up in consumer lending and credit cards and eventually in home mortgages. And that would be domestically as well as internationally.
Especially in Asia, which has been one of the most profitable regions for Citi lately.
OJA: They are looking to expand in China, especially in the consumer area.
That probably means lots of hiring there. As they shed assets and workers in the U.S. Citi is dealing with so much, though, including the mortgage mess — there’s no quick solution to its problems.
Matt McCormick is a banking analyst at Bahl and Gaynor, which is an investment advisory firm.
MATT MCCORMICK: Much like our economy will take years to recover, it’ll take years for Citi to get back to its former strength.
In New York, I’m Alisa Roth for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
