Citibank Swot Analysis

Topics: Bank, Financial services, Finance Pages: 3 (852 words) Published: May 3, 2006
Citibank: The Confia Acquisition in Mexico

Situation Analysis
Citibank is looking to expand their reach within the banking world. They had an opportunity to acquire Confia a Mexican bank. Many Mexican banks are having problems due to the lack of money and resources the Mexican people have to invest in the banks. Citibank does much research while deciding whether to follow through with the deal. At the very end of the purchasing process an undiscovered threat is exposed to Citibank that Confia may have. This brings more difficulties within the purchasing process. Firm Strengths

Citibank's many strengths start within their 194 year old rich history. Citibank has more than 100 years of experience in the international lending field. They are also the worlds largest credit lender and have been since the 1970's. They have also taken the title of the world's largest bank in 1981. In 1994 Citibank decided to break their company up into two sectors. One division being the Global Consumer Division and the other the Global Finance Division. This is strength for Citibank because this allows for more focus on their separate segments of the market.

Citibank also holds advantages and strengths within the Mexican banking market. After the Tequila Crisis most U.S. banks took their business out of Mexico, Citibank did not. They also found strength in the fact that their portfolio was not as large as other banks in Mexico, this allowing them to have fewer complications.

Confia also had some strengths. Begging with their 300 branches they had in 1992. Confia also has a great reputation. They are known for their great customer service, quality and efficiency. Confia is also a Mexican bank. This provides them with local and governmental support, that foreign banks may not get.

If Citibank acquired Confia some strengths that may come about are possible high returns. Again the accusation will allow Citibank to have a better local image. This may also lead to other...
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