Chase Manhattan and Citicorp

Chase Manhattan and Citicorp are two of the largest bank holding companies in the United States. Chase Manhattan is the sixth largest bank holding company (Hirsch, 1994, p. 2011) and Citicorp is the largest bank holding company in the country (Brophy, 1994, p. 2013. Both companies had checkered financial performance during the 1980s and early 1990s, and both have recently recovered. This research examines the financial performance of the companies in relation to each other and to the banking industry as a whole.

Citicorp provides a broad range of financial services for individuals and institutional clients from offices in 32 states and 92 foreign countries. Consumer banking services are provided through more than 1500 offices in five states and the District of Columbia, and through 2000 foreign offices. The company also has a large credit card operation, and also engages in private banking, mortgage banking and asset management. The Global Finance unit provides institutions with corporate financial services, transaction processing, foreign exchange and securities trading, brokerage and trust services. Foreign operations accounted for 45 percent of the company's assets in 1992 (Levine, 1993b, p. 537M).

Citibank suffered losses in 1987 and 1991 and common dividends were omitted in 1991 after having been paid since 1813 (the bank was incorporated in 1812 and the company incorporated in 1968). Dividends have been maintained on preferred stock (Levine, 1993b, p. 537M).

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Category: Business - C