Tuesday, March 16, 2010

Citibank (NYSE:C) Growing Commodities Unit

Citibank Commodities Unit

Citibank (NYSE:C) is looking to its investment banking division for growth, specifically its commodities unit, which it is focusing on expanding in the near term.

Raw materials and agriculture should be strong sectors for many years, and even with the alleged move by China to tighten its monetary policy, that could be a ploy as it negotiates across a number of sectors for raw materials it needs desperately.

One for sure is iron ore for the steel industry in China, which is booming and a major export for the country.

Precious metals are another sector which China will have great demand for in the years ahead.

With the pressure to cut back on fees in relationship to consumers, banks like Citibank are looking outside of retail banking for growth sectors, and commodities afford some of the best opportunities in the years ahead, even though there could be a lot of ups and downs on the road.

Citibank Commodities Unit

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