To expand growth opportunities, the commercial banking unit of Citigroup Inc. (NYSE: C), has planned to employ 900 individuals over the next three years. Markedly, the hires will include more than 400 commercial bankers.
The hiring spree is expected in developed, high-growth, and emerging markets, and will be leveraging existing institutional infrastructure.
Through the current plan, the bank, which serves mid-sized companies in over 60 countries, will be able to meet mid-size corporates’ increasing demand globally by providing institutional products and solutions at a large scale.
Additionally, in the current era of digitization, the bank plans to recruit industry expert senior bankers and enhance training and development for existing bankers to expand its digital capabilities and meet clients’ needs.
Market Statistics
Per an Organization for Economic Co-operation and Development (OECD) 2018 report, Multinational Enterprises (MNEs) are estimated to account for 50% of global exports, about one-third of world GDP, and approximately one-fourth of employment.
Therefore, with the anticipation of an acceleration in business activities, Citi Commercial Bank is making huge investments in the hiring process to cater to increased needs and serve clients with an annual turnover of $10 million to $3 billion. A ramping in demand is expected in areas including the U.S., China, Brazil, India, and Western European nations.
Official Comments
The Global Head at Citi Commercial Bank, Tasnim Ghiawadwala, said, “In today’s interconnected world, mid-sized companies quickly outgrow the capabilities of a local or even a regional bank. They are going global faster and reaching scale sooner than ever before.” She believes that Citi’s global connectivity and expertise will continue to attract clientele.
“CCB will focus on deepening client relationships through investment in our bankers and digital channels and by providing multiple client touch points into the rest of Citi,” Ghiawadwala added.
Analyst Recommendations
Following the company’s Investor Day early this month, Credit Suisse analyst Susan Roth Katzke maintained a Buy rating on the stock but reduced the price target to $66 (18.81% upside potential) from $72.
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 10 Buys and 9 Holds. The average Citigroup price target of $74.54 implies 34.19% upside potential from current levels. Shares have lost 20.78% over the past year.
Bloggers Weigh In
Bloggers seem enthused by the company’s plans. TipRanks data shows that financial blogger opinions are 93% Bullish on C, compared to a sector average of 68%.
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