Citibank is part of Citigroup, which ranks among the biggest banks in the U.S. Its most recent SEC filing in 2017 showed assets totaling $1.8 trillion but also a net loss of nearly $7 million versus a profit of just under $15 billion the year prior. Here are some other factors to help investors decide if they should back Citibank stock.
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|What Citibank Is Worth|
|Citibank Share Price, 52-Week Range||$64.38-$80.70|
|Citibank Market Cap, 52-Week Range||$164.2B-$205.8B|
|GOBankingRates’ Evaluation of|
Citibank Net Worth
|All information on 52-week range accurate as of June 28, 2018.|
|Citigroup CEO Michael Corbat Salary||$1.5M|
Citibank Market Cap Range: $164.2B-$205.8B
Market capitalization is determined by the total dollar value of a company’s outstanding shares, which helps investors determine the relative size of a company. Citibank’s market cap range has a market cap low of $164.2 billion and a high of $205.8 billion, which reflects how the market as a whole values the company in relation to its share price and number of shares.
Citibank Net Worth: $275.3B
Although market cap can give you a sense of how much the market values a company, it’s not strictly accurate because it’s based on market sentiment, which is dictated by the frequently changing opinions of investors. The GOBankingRates Evaluation, on the other hand, calculates a company’s net worth based on measurable figures like assets and revenue. It differs from the market value, as it takes into account full-year profits and revenue from a company’s last three years as well as its assets and debts.
Based on Citibank’s revenue and profits from the last three years, the company is worth about $275.3 billion.
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Citibank Faces a Tough Road Ahead
Like many financial institutions that survived the financial crisis of 2008, a government bailout assisted in Citibank’s survival. What makes Citibank’s bailout notable is that the company received more bailout money than any other bank: a grand total of $476.2 billion in cash and guarantees.
Since then, Citibank has been mired in a series of scandals, such as incurring a hefty fine of $700 billion for illegal credit card practices, taking advantage of student loan borrowers and manipulating Libor, a benchmark interest rate that affects loan rates — and thus money — worldwide. All of these legal issues indicate liability, despite the bank’s valuation, and analysts appear to agree that Citibank’s growth has been overshadowed by that of fellow big banks JPMorgan Chase, Wells Fargo and Bank of America.
Michael Corbat is the CEO for Citigroup, which oversees Citibank. He became CEO in 2012, having been involved in Citi’s predecessors since 1983. Corbat’s key business strategy involves using technology to take advantage of areas such as mobile banking, thereby cutting costs for Citibank.
Citibank CEO Barbara Desoer previously worked at Bank of America before taking the reins at Citibank in 2014. In 2017, she ranked No. 7 on American Banker’s list of “Most Powerful Women in Banking.”
Citibank Is Investing Billions in Technology
Citibank was not the first bank to use ATMs, but it was one of the first to invest in them. It poured over $100 million in an installation chain of ATMs across New York City, launching the first one in Queens in 1977. As of 2018, Citibank has more than 2,400 ATMs in over 700 Citibank locations.
The bank is continuing to invest in technology with about 20 percent of its expense budget, according to Business Insider. Corbat announced that the bank will spend approximately $8 billion on tech in 2018.
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Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. GOBankingRates’ rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article.