Economy
Citigroup to boost Japanese presence |
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| Economy | |
| Written by Gary Howes | |
| Tuesday, 02 February 2010 | |
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Citigroup expands into foreign market after it is revealed that Citigroup is the globes 5th most valuable banking brand.
Citigroup (NYSE:C) is set to expand its operations in Japan it has been announced today. The first two locations will open in the second quarter in the central Tokyo districts of Marunouchi and Nihonbashi, Citibank Japan Ltd. said in a statement. Details of the other two branches have not been released. The timing of the announcement comes after research reveals that Citigroup is the worlds 5th most valuable banking brand. The valuation on Citigroup's brand power comes courtesy of Brand Finance plc who have been quantifying the value of brand power in the banking sector since the publication of their first report into the matter in 2006. It is published annually and incorporates data from all listed companies globally. Each brand has been accorded a brand rating: a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set as well as a brand value: a summary measure of the financial strength of the brand. After a devastating year in 2008, Citigroup has had a much better year in 2009, reducing its debt and significantly increasing its brand value by 46% to US$14,362. Citi has been bailed out on two consecutive occasions in the crisis, receiving a total of US$45 billion from the US government, creating pressure to make drastic structural changes including a breakup plan. To maximise the value of its core franchise, in early 2009 Citi announced that it would reorganise itself into two operating units, Citicorp and Citi Holdings. This move is expected to allow Citigroup to focus on driving the performance of its core businesses as well as realizing value from non-core assets. Having lowered risk, written off problem assets, tightened cost controls and improved operation efficiency, Citigroup reported its first net profit since 2007 in April 2009. In June 2009 the closure of Morgan Stanley Smith Barney joint venture was announced. This combined Citi's Smith Barney business in the U.S. and Australia, Citi's Quilter in the UK with Morgan Stanley's global wealth management group. This transaction resulted in an $11 billion gain for Citigroup. In December, Citigroup became one of the last big US banks to exit the government's bailout program when it agreed to repay the $20 billion remaining on its outstanding loan.
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