Answer To: Please prepare in a formal report on the Citicorp case. Assignment questions are provided below. You...
Sudipta answered on Apr 05 2021
2
1. Trends that driving change in banking and securities
The commercial banking industry is offering better loans at a lower interest rate. The credit card industry also has generated a lot of impressions from customers. The credit card industry has generated a profit of $ 30 billion last year. There are several organizations involved in the Loan business. They offer several loans like health loans, housing loans, and others. The banking industry is getting highly dependent on short-term interest and long-term interest. Short-term loan rates are low and long-term loan rates are high. However, after 2015 interest rate in both term loans has started increasing effectively.
2. Nature of competition and factors increasing rivalry
Competition is very competitive because major rival firms “J.P Morgan” and “Bank of America” are earning higher revenue and higher net income while having lesser employees on board. Interest rate, technology, customer service, and low banking fees are some of the factors that increasing rivalry in the industry.
3. Develop and discuss CPM
According to financial data, J.P. Morgan has 241,000 employees and Bank of America has 223,000 employees while Citigroup is having 241,000 employees. Both J.P. Morgan and Bank of America (BOA) are performing better than Citigroup in terms of revenue and net income. J.P Morgan generated a revenue of $ 96,381 and BOA generated revenue of $ 101,697. While Citigroup had revenue of $ 76,882. On the other hand, Citigroup earned a net income of $7,313...