Analysis for the annual report - a multinational corporation
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Obtain the annual report of a multinational corporation (MNC) that interests you. Use the annual report and other information you may gather to report on the following
Summarize any comments made in the annual report about
- the MNC's level of international operations (sales, production, purchases, etc.)
- the MNC's plans to expand overseas in the future
- the impact of the MNC's foreign business on its recent performance.
Summarize how the MNC was affected by recent changes in the U.S. dollar's value. Explain why the MNC was favorably or unfavorably affected by the dollar's recent movement. Look for any comments in the report that describe the MNC's transaction exposure or economic exposure. Summarize the MNC's translation exposure and the effect of the dollar's recent movements on consolidated earnings. In what ways does the MNC hedge its foreign exchange risk exposure?
Summarize why the MNC has increased its international operations over time. Determine which factors were most influential in motivating the MNC's expansion into other countries. Has the MNC engaged in strategic alliances to accomplish this growth? If so, what forms has it used and what motivations are apparent?
Where does the MNC obtain the financing (both long-term and short-term) it needs to fund its operations? Has it issued any bonds denominated in foreign currencies? Does the MNC generate cash flows in that currency that could be used to cover the annual payments? (Give your opinion if this is not clear from the annual report.) Summarize any statements made regarding the MNC's decision to finance with U.S. dollars versus foreign currencies.
Summarize the forms of political risk that the MNC is exposed to according to the annual report.
Does it appear that the MNC has benefited from its international operations? Explain.
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An analysis for the annual report for a multinational corporation are given.
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Running Head: Analysis of Citibank's Annual Report
Analysis of Citibank's Annual Report
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Summary of Annual Report
Level of International operations
Citibank is a wholly owned subsidiary of Citigroup dealing primarily in cash management solutions. The company is a global commercial bank with operations in over 140 countries. In Europe, the Middle East and Africa, the company has a physical presence in 55 countries and jurisdictions, and does business in 61 more countries within the continents. The company also serves 90% of FTSE 100 companies, with it having processes more than $6 trillion of cross border funds in 2010, with the assets under their custody being more than $1.3 trillion in Asia Pacific. In 2010, the company helped its Asia Pacific clients to raise more than $160 billion from their international capital markets with retail deposits in the same region hitting $ 100 billion for the first time while institutional deposit reached $120 billion. The company is also one of the largest providers of credit cards in the industry with more than 21 million accounts generating more than $77 billion in receivables in North America. Citigroup's net Revenues for the year 2010 totaled $86.6 billion with $ 845 billion of deposits worldwide.
Plans to expand overseas in the future
The company has a positive outlook for future business expansion with a focus on growing and investing in the core Citicorp franchise while economically rationalizing Citi Holdings. The company has sharpened its focus in capturing a larger share of capital trade and flows from emerging markets through improved client coverage model, adding key talents within key markets, investing in new locations, investing in infrastructure and providing content that will appeal to the emerging markets. The company also intends to expand to the global middle class unbanked population (Citigroup Annual Report, 2010).
Impact of foreign business on its ...
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