) closed all its branches in Egypt, following the instructions
from Central Bank of Egypt (CBE). Citigroup's branches will
remain closed until it gets any further intimation from CBE to
act otherwise. All the financial institutions, including the
country's stock exchange, have been ordered to remain closed for
this week due to the recent political upheaval.
Egypt, known for its pyramids, pharaohs and the Sphinx has lately
witnessed a fresh spurt of violence and insurgence, which has
disrupted the nation's harmony. The extreme violence between the
Muslim Brotherhood and the army has been the cause of unrest,
significantly affecting the otherwise flourishing Egyptian
Citigroup started operating in Egypt in 1975 and has been
offering consumer and institutional banking services since then.
Currently, it has 9 branches across the nation with 650
employees. Moreover, it has a net investment of $250 million in
With recent translational losses of $100 million, Citigroup's
overall portfolio in Egypt is highly vulnerable to the negative
impact of political strife and disharmony.
Obeying the same instructions,
HSBC Holdings plc
) has also shut its branches but is planning to reopen on Sunday.
It has more than 75 branches with 2,300 employees in the country.
Egypt was acknowledged as a "priority growth market" by Stuart
Gulliver, HSBC's Chief Executive Officer, with lending exposure
of more than $10 billion. However, HSBC's profit in the first
half of 2013 was $117 million versus $137 million in the first
half of 2012.
The present unstable economy of the country is a threat to
financial institutions, challenging the security of customers as
well as employees. International peacemakers are trying to
negotiate with the concerned parties in order to restore the
Currently, Citigroup carries a Zacks Rank #3 (Hold). Some better
performing banks include
) with a Zacks Rank #1 (Strong Buy), and
The PNC Financial Services Group, Inc.
) with a Zacks Rank #2 (Buy).
BANKUNITED INC (BKU): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
HSBC HOLDINGS (HBC): Free Stock Analysis
PNC FINL SVC CP (PNC): Free Stock Analysis
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