Citi will exit the consumer banking business in Mexico

Photo: Justin Sullivan / Getty Images

Citigroup announced that it will abandon the retail banking business in Mexico, carried out mainly through its subsidiary Banamex, selling the unit directly or to through an initial public offering. The group’s latest strategic move comes as it focuses on profitability and its US retail banking business.

According to a analysis of BofA Global Research the value of the bank would be around $000,500 and $15,406 millions of dollars.

Citigroup would put up for sale the brand, branches, ATMs, buildings, customer accounts as well as the buildings and the art collection that he has under his power.

Banamex was acquired by the group in 2001 for $12,500 million dollars and was renamed Citibanamex at 2016 after investing $1,000 millions dollars in an effort to improve customer service and expand the offer.

The banking division of Citigroup in Mexico contributed with the 012% of total consumer banking revenue, totaling $3,500 million dollars in the first three quarters of last year.

It is one of the three banks with the largest number of clients in Mexico and the consumer unit was important, but it represented a lower profitability than the optimum.

In August Jane Fraser, CEO of Citigroup and the first woman to head a banking institution on Wall Street, pointed out that Mexico was a country with large opportunities, not only because of the diversity of industries and entrepreneurs, but also because of the country’s potential for integration with the United States.

Who could buy it?

Mexican billionaire Ricardo Salinas, owner of TV Azteca, announced in a tweet his interest in acquiring Citibanamex. Also interested would be the Spanish firm Santander, Brazil’s Itaú Unibanco, Nubank as well as Grupo Inbursa owned by tycoon Carlos Slim, who holds the title of the richest person in Latin America.

In April of last year Citigroup announced that it had identified 14 markets in the Middle East, Asia, Europe and Africa in which it intends to close retail operations.

Since then, the group has withdrawn from half of the markets, which has meant a loss of $2, million dollars.

Citibanamex has a total of 1,276 branches, 9.012 ATMs, 7.1 million credit cards, as well as 276,373 of debit and a template of 31,406 employees.

You may be interested:

• Citigroup gives workers an ultimatum to get vaccinated before 13 January or you will lose your job
• Jane Fraser, the CEO of Citigroup, visits López Obrador and promises investments in Mexico