Citibank N.

A (United States of America) Bangladesh Branches

Consolidated Financial Statements Analysis for Years 2014-2021

Consolidated Income Statements Analysis

Here figure 1 shows net profit after tax.

1,200,000,000

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

2021 2020 2019 2018 2017 2016 2015

Figure 1: Net profit after tax

It appears that the bank got its highest profit in the year 2018 (1,046,409,698), and the lowest profit in
2021 (306,064,474). It’s because the total operating income made the difference. On the other hand,
the profit didn’t keep pace with the other years because there was a pandemic situation ongoing in
2021. The bank didn’t face any kind of loss during these 7 years. In 2016 and 2017, the bank couldn’t
get much income from the interest sector, so the net profits of these years are comparatively low.

NOPAT
Net operating profit after tax (NOPAT) is a financial measure that shows how well a company
performed through its core operations, net of taxes. NOPAT is frequently used in economic value
added (EVA) calculations and is a more accurate look at operating efficiency for leveraged
companies. NOPAT removes the tax savings of debt from the calculation to focus more on the core
business activities. When a company has a strong NOPAT, it indicates that its leadership is making
the correct key decisions to ensure profitability. On the other hand, a weak NOPAT can expose
limitations in the growth of a company.
NOPAT of the given 7 years are the following:
NOPAT21 = EBIT (1-Tax rate)
= 586,048,275(1-0.40)
= 351,628,965
NOPAT20 = EBIT (1-Tax rate)
 = 1,773,818,299(1-0.40)
= 1,064,290,979.4
NOPAT19 = EBIT (1-Tax rate)
= 1,831,238,236(1-0.40)
=1,098,742,941.6
NOPAT18 = EBIT (1-Tax rate)
= 1,832,377,919(1-0.40)
= 1,099,426,751.4
NOPAT17 = EBIT (1-Tax rate)
= 1,060,632,428(1-0.40)
= 636,379,456.8
NOPAT16 = EBIT (1-Tax rate)
= 882,516,971(1-0.40)
= 529,510,182.6
NOPAT15 = EBIT (1-Tax rate)
= 1,522,794,457(1-0.40)
= 913,676,674.2
Here the highest NOPAT of the bank was in 2018 (1,099,426,751.4), which means its leadership had
made correct key decisions to ensure profitability.
Vertical Analysis
Vertical analysis is a top-down approach, where each line item is compared to total revenue as a
percentage. This is helpful when examining relative proportions, which is useful when applied across
multiple time periods and to compare between different industries/sectors and companies.

Particulars 2021 2020 2021 2020

Total Operating Income 1,830,205,916 2,891,541,328 100% 100%
Total Operating Expenses -1,222,615,403 -1,109,393,585 -67% -38%
Total Provisions -21,542,238 -8,329,444 -1% -0.00288%
EBIT 586,048,275 1,773,818,299 32% 61%
Total Tax -279,983,801 -865,940,156 -15% -30%
Net Profit After Tax 306,064,474 907,878,143 17% 31%

Particulars 2019 2018 2019 2018

Total Operating Income 2,854,647,980 2,947,826,617 100% 100%
Total Operating Expenses -1,074,527,873 -1,037,206,972 -38% -35%
Total Provisions 51,118,129 -78,241,726 2% -3%
EBIT 1,831,238,236 1,832,377,919 64% 62%
Total Tax -794,418,684 -785,968,221 -28% -27%
Net Profit After Tax 1,036,819,552 1,046,409,698 36% 35%
 Particulars 2017 2016 2015 2017 2016 2015
Total Operating Income 2,105,142,736 1,868,119,945 2,450,567,804 100% 100% 100%
Total Operating Expenses -991,831,833 -959,348,325 -958,296,368 -47% -51% -39%
Total Provisions -991,831,833 -959,348,325 -958,296,368 -47% -51% -39%
EBIT 1,060,632,428 882,516,971 1,522,794,457 50% 47% 62%
Total Tax -549,766,389 -438,238,801 -748,533,697 -26% -23% -31%
Net Profit After Tax 510,866,038 444,278,170 774,260,760 24% 24% 32%

Consolidated Cash Flow Statements Analysis

Here figure 2 shows Cash and cash equivalents at the end of the year
45,000,000,000

40,000,000,000

35,000,000,000

30,000,000,000

25,000,000,000

20,000,000,000

15,000,000,000

10,000,000,000

5,000,000,000

2021 2020 2019 2018 2017 2016 2015

Figure 2: Cash and cash equivalents at the end of the year

Here it appears that the bank had the highest cash and cash equivalents at the end of the year in 2021
(39,596,490,658), and the lowest in 2017 (13,046,575,556) during these given periods.

Net cash flow from operating activities

OCF21=3,324,208,568
OCF20=11,615,353,389
OCF19=6,718,892,584
OCF18=5,737,185,576
OCF17=-8,495,123,559
OCF16=-238,385,525
OCF15=3,717,994,293

Free Cash Flow

Free cash flow refers to a company's available cash repaid to creditors and as dividends and interest to
investors.
FCF = NOPAT – Net capital investment
FCF21 = 351,628,965- (-42,119,499)
= 393,748,464
FCF20 = 1,064,290,979.4- (-95,771,472)
= 1,160,062,451.4
FCF19 = 1,098,742,941.6- (-38,108,998)
= 1,136,851,939.6
FCF18 = 1,099,426,751.4- (-28,495,675)
= 1,127,922,426.4
FCF17 = 636,379,456.8- (-18,320,652)
=654,700,108.8
FCF16 = 529,510,182.6- (-20,569,781)
=550,079,963.6
FCF15 = 913,676,674.2- (-22,320,546)
= 935,997,220.2

Free Cash Flow Ratio

Free Cash Flow Ratio = Free Cash Flow/Cash Flow From Operating Activities
Free Cash Flow Ratio21 = 393,748,464/3,324,208,568
= 0.1184%
Free Cash Flow Ratio20 = 1,160,062,451.4/11,615,353,389
= 0.0998%
Free Cash Flow Ratio19 = 1,136,851,939.6/6,718,892,584
= 0.1692%
Free Cash Flow Ratio18 = 1,127,922,426.4/-238,385,525
= -4.7315%
Free Cash Flow Ratio17 = 654,700,108.8/-8,495,123,559
= -0.0770%
Free Cash Flow Ratio16 = 550,079,963.6/-238,385,525
= -2.3075%
Free Cash Flow Ratio15 = 935,997,220.2/3,717,994,293
= 0.25174%

Cash Flow Margin Ratio

Cash Flow Margin Ratio = Cash Flow from Operating Activates/Revenue
Cash Flow Margin Ratio21 = 3,324,208,568/306,064,474
= 10.8611%
Cash Flow Margin Ratio20 = 11,615,353,389/907,878,143
=12.7939%
Cash Flow Margin Ratio19 = 6,718,892,584/1,036,819,552
=6.48029%
Cash Flow Margin Ratio18 = 5,737,185,576/1,046,409,698
=5.4827%
Cash Flow Margin Ratio17 = -8,495,123,559/510,866,038
=-16.6288%
Cash Flow Margin Ratio16 = -238,385,525/444,278,170

=-0.5365%
Cash Flow Margin Ratio15 = 3,717,994,293/774,260,760
=4.8019%

Cash Flow Coverage Ratio

Cash Flow Coverage Ratio = Cash Flow from Operating Activates/Debt

Cash Flow Coverage Ratio21 = 3,324,208,568/5,963,836,028

= 0.557%
Cash Flow Coverage Ratio20 = 11,615,353,389/4,709,929,491

= 2.466%
Cash Flow Coverage Ratio19 = 6,718,892,584/3,296,355,814

= 2.038%
Cash Flow Coverage Ratio18 = 5,737,185,576/6,531,578,960
 = 0.878%
Cash Flow Coverage Ratio17 = -8,495,123,559/64,580,456

= -131.543%
Cash Flow Coverage Ratio16 = -238,385,525/452,122,084

= -0.5272%
Cash Flow Coverage Ratio15 = 3,717,994,293/728,764,894

= 5.1017%

Consolidated Balance Sheet Statements Analysis

Here the following figure shows Total assets/ Total liabilities and equity.

70,000,000,000

60,000,000,000

50,000,000,000

40,000,000,000

30,000,000,000

20,000,000,000

10,000,000,000

2021 2020 2019 2018 2017 2016 2015

Figure 3: Total assets/ Total liabilities and equity

Total assets/ Total liabilities and equity was highest in 2021 (63,684,391,968), and the lowest was in
2017 (37,911,694,081) during these given years.

Current Asset
CA21= 13,251,995,088+17,290,159,662+20,000+15,397,801,029+16,098,991,597
 = 62,038,967,376
CA20 = 15,273,693,131+19,251,977,619+11,921,230,744+13,582,184,318
= 60,029,085,812
CA19 = 10,266,253,894+16,094,115,319+11,220,345,971+18,472,142,482
= 56,052,857,666
CA18 = 9,618,687,769+10,171,377,318+8,287,925,575+22,616,295,914
=50,694,286,576
CA17 = 7,112,683,159+4,188,713,394+8,371,494,964+16,341,521,278
=36,014,412,795
CA16 = 9,348,552,064+9,560,452,760+1,520,000,000+8,845,605,995+8,954,852,250
=38,229,463,069
CA15 = 10,617,397,680+8,194,331,521+1,390,000,000+8,591,798,207+8,279,228,779
=37,072,756,187

Current Liability
CL21= 43,422,625,463
CL20= 41,088,931,396
CL19= 38,656,696,683
CL18= 31,558,564,360
CL17= 25,640,188,410
CL16= 27,966,018,791
CL15= 26,454,060,880

Net Operating Work Capital

Net operating working capital is a financial metric that gauges the difference between a company’s
non-interest bearing operating assets and its non-interest charging operating liabilities.
NOWC= Current Asset – Current Liability
NOWC21= 62,038,967,376-43,422,625,463
= 18,616,341,913
NOWC20= 60,029,085,812-41,088,931,396
= 18,940,154,416
NOWC19= 56,052,857,666-38,656,696,683
 = 17,396,160,983
NOWC18= 50,694,286,576-31,558,564,360
= 19,135,722,216
NOWC17= 36,014,412,795-25,640,188,410
= 10,374,224,385
NOWC16= 38,229,463,069-27,966,018,791
= 10,263,444,278
NOWC15= 37,072,756,187-26,454,060,880
= 10,618,695,307

Operating Capital
Operating capital is the cash available for a company’s operations. However, its calculation depends
on its current assets and current liabilities.
Operating Capital = NOWC + Net Fixed Assets
Operating Capital21= 18,616,341,913+153,960,194
= 18,770,302,107
Operating Capital20= 18,940,154,416+163,415,676
= 19,103,570,092
Operating Capital19= 17,396,160,983+120,953,357
= 17,517,114,340
Operating Capital18= 19,135,722,216+151,668,199
= 19,287,390,415
Operating Capital17= 10,374,224,385+178,282,772
= 10,552,507,157
Operating Capital16= 10,263,444,278+218,135,362
= 10,481,579,640
Operating Capital15= 10,618,695,307+260,389,439
= 10,879,084,746