Citigroup exudes quality and strength

Money Digest, June, 2001

As one of the world's largest financial institutions, Citigroup offers growth potential for the long term

Citigroup (NYSE: C; Recent price: US$48), created through the merger of Citicorp and Travelers Group, is one of the world's largest financial services companies. It offers credit card, banking (primarily through subsidiary Citibank), insurance, and investment services.

Citigroup is expected to report revenues in excess of $80 billion for the year 2001.

While investors are concerned about a possible economic slowdown in the United States, any slowdown, should it materialize, is likely to have less of an affect on Citigroup compared to other financial organizations. Citigroup is widely diversified within this sector and offers an impressive variety of products ranging from mutual funds to insurance and from credit cards to stock brokerage services.

Citigroup's subsidiaries include Salomon Smith Barney (brokerage), Primerica (life insurance and mutual funds), and Travelers Property Casualty Citigroup's e-Citi unit develops online financial service products. The firm has also acquired the investment banking business of Schroders PLC and Associates First Capital.

In addition, Citigroup is globally diversified. It has presence in some 100 countries and approximately 40% of profits are derived from non-U.S. sources. Citigroup is a high quality play in the financial sector.

                             Citigroup Inc.
Current P/E                  17.5
Earnings/Share              $2.74
Dividend Yield              1.00%
Debt/Equity Ratio            2.02
Net Profit Margin          11.50%
Shares Outstanding     $5.036 Bil
Market Capitalization  $253.0 Bil