La Jornada – Citigroup will stop operating Banamex consumer and business banking

Mexico City. Citigroup, owner of Citibanamex, announced its intention to sell consumer banking and corporate banking in Mexico, a business that represents around 60 percent of its revenues in the country. The sale includes the artistic and cultural heritage of the National Bank of Mexico.

According to Citi and Alberto Gómez Alcalá, Citibanamex corporate director of institutional development, economic studies and communication, the decision follows a strategy of the US group.

In a videoconference, Gómez Alcalá explained that, practically, what is put up for sale is the brand, infrastructure, portfolios and businesses —Administrator of Retirement or Insurance Funds— and cultural heritage.

“All that bank is sold, because the name of the bank is sold. the branch, the cashier, etc. ”, he pointed out in a conference…. All the artistic heritage belongs to the Banamex bank, let’s say Banco Nacional de México, it would be included in the sale package of those buildings, their branch houses, their art collection and any other infrastructure of the Banco Nacional de México ”, he said.

Both the executive and the US institution stated that the decision is not influenced by the country’s economic prospects or by a lack of confidence, even, both parties suggest that Citi will continue with all its investment plans in Mexico.

“The decision to exit the consumer banking and corporate banking businesses in Mexico is fully aligned with the principles of our new strategic vision… Mexico is a priority market for Citi, that will not change. We anticipate that Mexico will be a very important destination for global investment and trade flows in the coming years and we are confident in the country’s trajectory, “said Jane Fraser, Citigroup CEO, in a statement.

With respect to the situation of the clients, explained Gómez Alcalá in the videoconference, they will not have any effect, since at the moment only the announcement of the sale of retail banking is being made. The decision, he said, will not have any repercussions for Citibanamex workers either.

Thus, he detailed, at this time anyone can still go to the bank to request a loan of any kind. What will happen, he explained, is that “the retail part of the bank will be put up for sale, and the wholesale or equity part will continue to be in charge of Citi, that is, a new license to operate will be sought.”

This means that Citi will now only keep the wealth banking or the most important accounts, the Citibanamex name will disappear and the retail business, which includes the bank, the Afore and insurance, will be sold “to the highest bidder.”

“Additional information on the businesses from which Citi anticipates exiting in Mexico will be included in the earnings report for the fourth quarter of 2021 that will be published on January 14, 2022,” said Citigroup.

According to official figures as of November, Citibanamex has a consumer loan portfolio of 165 thousand 87 million pesos, while in the business credit segment the current portfolio is 551 thousand 91 million pesos. The earnings for the bank reported for the eleventh month of the year are for a total of 18 thousand 113 million pesos.

According to the National Banking and Securities Commission (CNBV), until the month of November, Citibanamex has a total of 1,276 bank branches, 9,112 ATMs and a pool of 7,1168,138 credit cards.

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