Citigroup is optimistic that its revenue from the Middle East and Africa business will keep soaring, even as the region battles lower unstable oil prices and political uncertainty.
In a recent interview, Citigroup’s CEO of EMEA emerging markets cluster Atiq Rehman said:
“We typically do much better than the economic growth rate, given our business model…I am cautiously optimistic on emerging markets.”
He also added that the dropping interest rates in the U.S. would turn out to be positive overall. Citigroup expects that its income in the region could grow by a high single-digit this year, based on the markets, investment banking, as well as cash management businesses. The CEO opined that the income growth might slump to a mid-single digit rate in 2020, after rising at a compound annual rate of 10% recently.
Citigroup’s Latest Performance
According to live Citigroup stock price in the last 24 hours, the American bank’s share price was at $70.34 while live price was at $70.39. The Change PCT was up at 1.57%, showing an improvement of 1.09 in a 24-hour period.
The bank believes that economic growth in North America and the Middle East will remain stable at 1.3% in 2019, based on International Monetary Fund projections.
Currently, oil prices in the Middle East and Northern Africa region are weak, which hinders the countries’ abilities to spend. Besides, the fear of a looming row between the U.S. and Iran has equally affected economic growth in countries such as Saudi Arabia and the United Arab Emirates.
EMEA Cluster Potential
Earlier this year, Citigroup offered advice on the economic potential of the region, pegged on some of the biggest deals such as Saudi Aramco’s acquisition of Saudi Basic Industries Corporation valued at $69.1 billion. Besides, the bank is involved in the top arrangements of bond sales in Central and Eastern Europe, Bloomberg data puts it.
Recently, Citigroup appointed Rehman as the head of the EMEA emerging cluster. The group includes three sub-clusters:
- Middle East and North Africa
- Sub-Saharan Africa
- Russia, Turkey, Ukraine, and Kazakhstan
Rehman said the bank expects this cluster to deliver nearly 10 percent of its global profit.
Featured image via Citigroup Twitter