...Accounting 70150 Financial Institution Financial Analysis, Part I 75 points Name: Signature 1. (12) Refer to the Citigroup 2009 10-K report. Explain the primary reasons for the Net Income differences between 2008, 2009 and 2010. Use the following format: 2009 2010 2011 Citigroup’ net income (loss) $billions ($1.606) 10.602 $11.067 Change $12.208 $.465 2011 vs. 2010: Citigroup and Consolidated Subsidiaries Overall, the largest change between the two years on the Income Statement is the 50.86% reduction (26,042 to 12,796) in the provisions for credit losses and benefits and claims. Net income for Citigroup increased 4.65% (10,602 to 11,067) while revenues decreased 10% (from 86,601 to 78,353) and operating expenses increased 7.51% (47,375 to 50,933). Additionally, the income from discontinued operations increased from (68) to 112. Citicorp Analysis: While total Citicorp income from continuing operations only decreased 2%, the Global Consumer Banking increased 33%, the Securities and Banking decreased 25%, and the Transaction Services decreased 7%. Citi Holdings Total Citi Holdings increased 38% in the period, as Brokerage and Asset Management decreased 27%, Local Consumer Lending increased 43% and Special Asset Pool decreased 49%. Thus, Citi Holdings income from continuing operations increased only 1%, but the Discontinued Operations, Net Income attributable to NCI decreased 47%, causing Citigroup net income to increase by 4%...
Words: 2696 - Pages: 11
...protection than just credit report monitoring. We'll be alerted if any suspicious activity is found, such as if our personal information like social security, bank account number, home address is being used to open new credit cards, wireless services, retail credits loans, non-credit related payday loans and auto loans. Alerts are sent via email or phone. Online account will also be updated with any alert information. Next LifeLock adds scanning of the Internet's black markets for any use of credit card numbers, driver's license, Social Security number and email, alert if personal information is found. LifeLock's guarantee applies to both their LifeLock and LifeLock Ultimate products, and is one of the best out of any of the top companies for identity protection. They guarantee good name up to $1 million if identity is ever stolen. While this guarantee is great, direct monetary losses from identity theft are almost always much smaller since person is not legally responsible for paying any fraudulent debt a thief accumulated. The real cost of identity theft is the loss of ability to get credit for an extended period of time, the time and effort it takes to restore good name, and many other adverse consequences that can even include any mistaken. The LifeLock Ultimate builds upon their standard LifeLock product, offering more advanced identity theft protection methods, 3-bureau credit monitoring and monthly TransUnion credit scores. Although it provided credit report updates more...
Words: 348 - Pages: 2
...is “An Overview of Credit Management by Sonali Bank Limited”. This report is based on study carried out on Credit management of Sonali Bank Limited using both qualitative and quantitative methods. The aim of the study is to find out the credit control system performed by Sonali Bank Ltd. The scope of this report is limited to the overall description of the company, its services and its financial performance analysis. The scope of the study is limited to credit management, functions, and performances. The report will mainly focus on SBL’s credit offer and is control and management. 1.3 Objectives of the report: The purposes of this report relates with the internship. The internship objective is to gather practical knowledge and experiencing the corporate working environment. To this regard this report is contemplating the knowledge and experience accumulated from internship program.. The objectives behind the construction of this report are: To know the practical implication of credit management. To have an in depth knowledge of Credit management procedure of Sonali Bank Limited. To justify how a bank effectively employ procedures to judge creditworthiness of prospective and existing borrower. To differentiate between practical and theoretical learning To observe the performance of the bank over a certain time period 1.4 Methodology: As the Topic of the report was Credit management, so I needed to collect information regarding the credit control procedure. ...
Words: 8916 - Pages: 36
...Key Inputs for th XII Plan Financing of Power Sector Central Electricity Authority Government Of India Agenda Sector Profile Magnitude of Investment Funding Sources and Issues Power Sector Profile A LL INDIA DEFICITS IN POWER 20 15 Percent 10 5 Energy Def icit Peak Def icit 0 1998 -99 2000 -01 2002 -03 2004 -05 2006 -07 2008 -09 Energy availability has increased by 32.7% in the past 5 years but demand continues to outstrip supply Nearly 600 million Indians do not have access to electricity AT&C losses currently exceed 30% for the country as a whole. Need to Accelerate Power Sector Growth Growth in GDP and Gross Power Generation 15.00 Grow th in Gross Generation 10.00 Grow th in GDP Percent 5.00 0.00 199900 200001 200102 200203 200304 200405 200506 200607 200708* 200809* For India to grow @9% p.a. its power sector must also grow at 7.2% p.a (XIIth Plan projects electricity use elasticity wrt GDP at 0.8) But over the last 5 years, Gross Power generation has grown by only 5.89% pa NEP objective : Power for all by 2012 Targeted Growth of Generation XIth Plan target is 78,700MW XIIth Plan target is 1,00,000 MW Current investment focus is on Generation Investment in Sub-transmission and Distribution is lagging However, for smooth functioning of the sector Investment should be in the ratio 2:1:2 Magnitude of Investment (Rs crore) Plan Generation Transmi ssion 1,40,000 2,40,000 Distributi...
Words: 864 - Pages: 4
...of the Study 4 1.7 Limitation of the Study 4 2. REVIEW RELATED LITERATURE 5 2.1 Introduction 5 2.2 Credit Assessment 5 2.3 Credit Appraisal 6 2.4 Credit Documentation 6 2.5 Collateral 7 2.6 Interest Rate 7 2.7 Size of Loan 8 2.8 Purpose of Loan 8 2.9 Loan Period 8 2.10 Disbursement 9 2.11 Repayment of Bank Loans 9 2.12 Monitoring and Follow up 9 2.13 Factoring of Debtors through Credit Bureaus 10 2.14 Portfolio Management 10 3. RESEARCH METHODOLOGY 11 3.1 Research Method 11 3.2 Method of Data Collection 11 3.3 Determination of Population Size of the Study 12 3.4 Sample Size 12 3.5 Method Data Analyses 12 4. TIMELINE 12 5. BUDGET BREAKDOWN 13 6. REFERENCES 13 1. INTRODUCTION 1.1 Back Ground of the Study Bank lending is guided by credit policies which are guidelines and procedures put in place to ensure smooth lending operations. Bank lending if not properly assessed, involves the risk that he borrower will not be able or willing to honor their obligations (Feder & Just 1980). In order to lend, banks accept deposits from the public against which they provide loans and other form of advances. Since they bear a cost for carrying these deposits, banks undertake lending activities in order to generate revenue. The major sources of revenue comprise margins, interests, fees and commissions (Odongo, 2004). Beyond the urge to extend credit and generate revenue, banks have to recover the principal' amount in order to ensure safety of depositors’...
Words: 4100 - Pages: 17
...I.INTRODUCTION Experiencing low cost traditional surgical procedures, Advanced Medical Technology Corporation (AMT) wants to broadcast this tagline by manufacturing well designed medical instrument based on a massive researching. Taking into account the efforts and allowances spilled by AMT on its research and development aspect, and in invading new markets, it is not unexpected that it had gained an extraordinary growth and rapid expansion of its sales force for just a few years of being established. Like any other companies who were in their infancy/growth stage, it is a normal thing to put the best shoe forward in order to gain an A+ mark. But the aggressiveness nature of the decisions made by Peter Haskins, president of the AMT, had, to the conclusion of some lenders, contributed to several tribulations that impede the continuous growth of the company. Though AMT had gained extraordinary growth through their well done researches, it tends to risk its financial aspect by exhausting too much fund just to develop and produce its product. Its mismanagement of its assets had made potential creditors to deny its loan requests. These facts had led to the perfection of this study. It aimed to analyze the problems faced by the company, the cause of these problems and how the company will trounce these problems. II. EXECUTIVE SUMMARY Advance Medical Technology Corporation (AMT) developed, manufactured and sold scientific medical instruments, needles, and catheters that allowed...
Words: 2630 - Pages: 11
...Samuel Kui Section 0501 Be Our Guest Be Our Guest, a Boston based company, is a rapidly growing equipment rental company with substantial seasonality in its revenues and profits. For years, the company has been renting party supplies and furniture to caterers, event planners and hotels; it has also managed to grow gradually in a very volatile and seasonal business. The founder, Stephen Lizio and co-owners Al Lovata and Simone Williamson found it difficult to fund daily operations because of seasonal cash shortages. In 1996, the company had secured a $100,000 revolving line of credit at the prime rate plus 1.5%, and a $390,000 five-year loan at a fixed rate of 9.25%. By the end of 1997, the loan outstanding balance was reduced to $315,000 and the monthly payment is more than $8000. Many of Be Our Guest's customers had followed up their annual holiday rush, then party-equipment rentals peak, with their annual winter slump, leaving them unable to pay their bills until late spring. Holiday seasons in the fall and winter typically accounted for half of the company's annual revenues and the size of the seasonal rises is unpredictable. Trying to finance such sharp swings in demand has been one of the biggest challenges that the owners had to face. Although the company's annual revenue from 1995 to 1997 had risen 49% to $2.7 million, net income for 1997 had declined 37% to only $88,000; the decline was primarily attributed to large payouts and was taking it as salary...
Words: 612 - Pages: 3
...D-C vs D-C-S agreements D-C-S (debtor-credit-supplier) A D-C-S agreement is an agreement made by the creditor under a pre-existing arrangement, or in contemplation of such a future arrangement, between himself and a supplier, or which is financing a transaction between supplier and debtor. For example, a finance company which routinely deals with a motor dealer and the credit is to fund the purchase of a vehicle, or a high street retailer with existing links to a lender. D-C (debtor-creditor) A D-C agreement in essence is the same, but without funding a transaction between the debtor and a third party supplier. For example, a cash loan to a consumer or a credit card. Even if the creditor has given the cash loan for a restricted use (ie specifically for the purchase of a laptop and for no other purpose), if the consumer has the cash and the freedom to spend it with any supplier there is no ‘pre-existing arrangement’ or contemplation of same. Which is the case depends on the facts of the transaction and it will be for the creditor to make that assessment. For general guidance see ‘Regulated and Exempt Agreements’ OFT140a – also for points 2 and 3 below. 2. Why is it important? (a) Firstly, many of the exemptions turn on the nature of the agreement. The ‘Credit Union’ exemption for example applies only to debtor credit agreements. Other exemptions apply only to D-C-S agreements. As such it important to determine the precise nature of the agreement. ...
Words: 2051 - Pages: 9
...MITIGATION ANALYSIS: MICRO-CREDITS FOR ROMA COMMUNITIES IN HUNGARY Prepared by Volodymyr Tounytsky, Zoltan Kristof and Alexandra Windisch-Graetz For UNDP, “Micro-credit programme for disadvantaged groups in Hungary – with a special focus on the Roma population”(Pr.Nr. 00042644) TABLE OF CONTENTS 1. Executive summary 3 2. Overview of status of micro-lending in general, for vulnerable groups and Roma population in particular 3 2.1 A brief look at the competition: Usury and quick loans in Hungary 7 3. Description of Hungarian microfinance project 11 4. Risk analysis of micro-lending institution and its operations for disadvantaged groups as designed under the Micro-credit program for disadvantaged groups in Hungary and mitigation guidelines 12 4.1 Institution Related 13 4.2 Target Group Related 14 4.3 Product Related 15 4.4 Loan Process 21 4.5 Delinquency and Defaults 27 5. A set of indicators for risk monitoring and portfolio management 30 6. Conclusions and Recommendations 30 Table 1. Risk Areas and Mitigation Approaches 32 Table 2. Characteristics of Client Economic Activities 36 Table 3. Product Specification Sheet: Credit Product 38 Table 4. Loan Analysis Form 39 Table 5. Financial Statements With Loan Loss Provision and Reserve 42 Table 6. Portfolio Management Indicators 43 1. Executive summary This report has been commissioned by the UNDP, Project Nr. 00042644 “Micro-credit programme for disadvantaged...
Words: 13173 - Pages: 53
...“Credit Management and performance evaluation of National Bank Limited” Chapter – 01 Introduction OF THE REPORT 1.1 Introduction National bank limited (NBL) is a full service scheduled commercial bank. It has both local and International Institutional Shareholder. The bank is primarily driven with a view of creating opportunities and pursuing market niches not traditionally meet by conventional banks. National Bank has been motivated to provide “best-in-the-class” services to its diverse assortment of customers spread across the country under an on-line banking dais. Today, National Bank is one of the fastest growing banks in the country. In order to support the planned growth of its distribution, network and its various business segments, National Bank is currently looking for impressive goal oriented, enthusiastic, individuals for various business operations. The bank wants to build a profitable and socially responsible financial institution. It carefully listen to the market and business potentials, It is also assisting stakeholders to build a progressive, healthy, democratic and poverty free Bangladesh. It helps make communities and economy of the country stronger and to help people achieve their financial goals. The bank maintains a high level of standards in everything for our customers, our shareholders, our acquaintances and our communities upon, which the future affluence of our company rests. Risk is inherent in all aspects of a commercial operation...
Words: 13236 - Pages: 53
...my study on “Credit Approval & Monitoring process of BRAC Bank Limited” with respect to Bangladesh Bank guidelines. My faculty supervisor Mr Khandaker Zahidul Alam, Assistant Professor of BRAC Business School, BRAC University, also approved the topic and authorized me to prepare this report as part of the fulfillment of internship requirement and gave me proper guidance and assistance over time. 1.2 Background of the Report Four years back, Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produced a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as follows- a) Credit Risks; b) Asset & Liability / Balance Sheet Risks; c) Foreign Exchange Risks; d) Internal Control & Compliance Risks; and e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD Circular no.17) advised the commercial banks of Bangladesh to put in place an effective credit approval and...
Words: 15967 - Pages: 64
...and David Loeb, this corporation saw much better days in the inception of their American dream and throughout the first couple of decades of its business as Countrywide Credit Industries in New York. Their goal was simply to provide home loans nationwide. They eventually opened more establishments in other major cities in the United States. Success seemed inevitable as they rose to the top of the loan industries and went public in selling trade shares. They acquired the Treasury Bank N.A. that they renamed Countrywide Bank FSB in 2001, and then renamed again the following year as Countrywide Financial Corporation. Their decent became more apparent in 2007 just a couple of years before they sold out to Bank of America. With the astounding numbers of mortgages in default, a general liquidity crisis unfolded before the public in 2008. The walls began to come tumbling down when losses at Fannie Mae and Freddie Mac began to mount and the American Insurance Group announced that they were unable to back the guarantees. The values of securities against loans were losing value. It was indeed catastrophic to the financial loaning institutions involved with the housing market crash that year. Their strategies of granting subprime mortgages backfired terribly. Having given out loans to so many borrowers with low credit scores and little money for downpayments came back to bite them on the backside bringing their kingdom down and forcing them to sell out. The relaxed standards used by...
Words: 340 - Pages: 2
...status over the next few years with this in mind. In addition with the understanding that the economy itself is faced with various challenges such as unemployment, financing (interests rates and accessibility in getting loans) and changes in technology. It is vital to Larson Inc. future for them to understand the direction of the economy and make various changes to stay competitive and profitable. To achieve this goal, Larson Inc, will need to prepare for credit markets and global conditions. In this memo we will present recommendations for Larson Inc, so they can create profitable outcomes over the next few years. Credit Markets: The leaders of the Larson Inc must understand what the current and projected credit markets. The credit market is a broad market that encompasses investment-grade and junk bonds as well as short-term commercial paper. Commercial paper generally is not back by collateral, meaning that companies with higher debt rates will qualify. The current state of the economy reveals that the credit markets are showing life to the small businesses. The Federal Reserve also influences interest rates to help the economy. By controlling inflation or deflation by raising or lower the interest rates that affect business (Bofah, 2010). Currently the state for the economy is in a sluggish recovery phase, Larson Inc will have to be creative for the next year. To strengthen their chances to secure future funding...
Words: 1391 - Pages: 6
...Banks have also shown comparatively good result. The gross profits and the net profits of the Public Sector banks have been on a high from past few years. The private sector banks are also showing good results in case of profits. However, the only problem of the Scheduled Commercial Banks these days are the increasing level of the non performing assets. The Non-Performing Assets (NPAs) problem is one of the foremost and the most formidable problems that have shaken the entire banking industry in India like an earthquake. Like a canker worm, it has been eating the banking system from within, since long. It has grown like a cancer and has infected every limb of the banking system. At macro level, NPAs have choked off the supply line of credit to the potential borrowers, thereby having a deleterious effect on capital formation and arresting the economic activity in the country. At the micro level, the unsustainable level of NPAs has eroded the profitability of banks through reduced interest income and provisioning...
Words: 9118 - Pages: 37
...Literature Review on default loan For a long period after liberation, the ambiance of the banking system was lax enough for classifying non-performing loans due to the absence of a standard loan classification procedure and specific time limit for loans to be classified. In earlier, a long time required for a loan to be identified as classification. This resulted in huge non-performing loans and banks had to operate with inadequate capital bases. Gradually, the country's banking system reached a chronic state of insolvency and became virtually non-viable. The National Commission on Money, Banking, and Credit conducted a study with the help of the World Bank and on the basis of its report; the government introduced a comprehensive financial sector reform program in the country. As part of this program, a new system of loan classification and provisioning against potential loan losses for advances as of 31 December 1989 was introduced in November 1989. The calculation of provisions and interest suspense was based on the balance outstanding on 31 December 1990. Subsequently, the classification, provision estimates, and treatment of unrealized interest were carried out on advances as of 31 December each year and completed within three months. The loans were usually classified by the lending bank, whenever the bank had reasons to believe that the borrower would not be able to repay the loan regardless of whether the loan was overdue or not. Loans extended by a bank were classified into...
Words: 863 - Pages: 4
