Back to top

Analyst Blog

Citigroup, Inc. (C - Analyst Report) 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 economy.

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 the country.

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 nation’s harmony.

Currently, Citigroup carries a Zacks Rank #3 (Hold). Some better performing banks include BankUnited, Inc. (BKU - Analyst Report) with a Zacks Rank #1 (Strong Buy), and The PNC Financial Services Group, Inc. (PNC - Analyst Report) with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%