NEW YORK – (BUSINESS WIRE) – January 11, 2022–
Citi today announced its intention to pull out of Citibanamex’s consumer, small business and mid-market banking operations as part of its strategic refresh. Citi will continue to operate a locally licensed banking business in Mexico through its global group of institutional clients. Citi has operated in Mexico for more than a century and the country will continue to be one of Citi’s primary institutional markets outside of the United States. Citi will continue to invest in and develop these institutional banking operations, as well as its Private Banking franchise.
Citi CEO Jane Fraser said, “The decision to exit consumer, small business and mid-market banking in Mexico is fully aligned with the principles of our Strategy Update – we will be able to ” directing our resources towards opportunities aligned with our main strengths. and competitive advantages, focus on businesses that benefit from connectivity to our global network, and we’ll further simplify our banking.
Fraser continued, “Mexico is a priority market for Citi – that won’t change. We anticipate that Mexico will be a major recipient of global investment and trade flows in the years to come, and we are confident about the country’s trajectory. Citi is uniquely positioned to support cross-border capital markets activity and trade flows to and from Mexico for our institutional clients and we will continue to make significant investments in our institutional operations and our market-leading hub there. -low. “
Citi’s planned disposals of its consumer activities across Mexico, Asia and Europe are aligned with repositioning its consumer business to focus on centers of global wealth as well as payments and loans and a focused retail presence in the United States
Banco Nacional de México is a leading bank in Mexico with an iconic brand and a rich history. Citi has made significant investments in this business over the past two decades, significantly improving its digital and mobile banking capabilities, strengthening its technology infrastructure, modernizing its branch and ATM network, deepening its relationships with key customer segments and advancing its financial inclusion efforts. .
“The actualization of the strategy undertaken by Citi will result in a stronger and more focused bank,” said Mark Mason, CFO of Citi. “We will implement a focused consumption strategy, double our wealth and focus on our higher yielding institutional businesses where we have competitive advantages. Our focus is on the opportunities where our global network uniquely positions us to support growing clients facing a complex set of constantly evolving dynamics across the globe.
Activities targeted by the planned release include personal and small business banking in Mexico, reported under the Citi program. Global Consumer Banking segment , as well as mid-market banking activities in Mexico, reported in the Institutional client group segment . The personal and small business banking operations in Mexico included in the planned exit represent the entire Global Consumer Banking in Latin America unity. In the first three quarters of 2021, the companies Citi intends to exit totaled approximately $ 3.5 billion in revenue, $ 1.2 billion in pre-tax profits, $ 44 billion in assets and 4 billion dollars of TCE allocated on average.
Additional information on operations Citi intends to exit in Mexico will be included in the fourth quarter 2021 earnings report on January 14, 2022. A link to Citi’s current report on Form 8-K filed today hui regarding the output can be found here.
The method and timing of Citi’s exit from its consumer, small business, and mid-market banking operations in Mexico, which may include a public market sale or alternative, will be determined by Citi and will be aligned with its objectives of maximizing shareholder value and strengthening both the businesses that Citi will leave and those it will retain. The exit process is subject to various conditions and approvals, including regulatory approvals applicable in the United States and Mexico.
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the United States Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changing circumstances. These statements are not guarantees of results or future events. Actual results, capital and other financial conditions may differ materially from those included in these statements due to various factors. These factors include, among others, the achievement of the intended exit, such as satisfaction of various conditions and approvals, macroeconomic challenges and uncertainties, and local banking conditions; incurring unforeseen charges or expenses; the impact of the recognition of translation differences related to the activities concerned; and the caveats included in this press release. These factors also include those contained in documents filed by Citi with the SEC, including, without limitation, the “Risk Factors” section of Citi’s Form 10-K 2020. All forward-looking statements made by or on behalf of Citi speak only as of the date on which they are made, and Citi does not undertake to update any forward-looking statements to reflect the impact of circumstances or events occurring after the date the forward-looking statements were made.
Citi, the world’s largest bank, has approximately 200 million accounts receivable and operates in more than 160 countries and jurisdictions. Citi provides consumers, businesses, governments and institutions with a wide range of financial products and services, including consumer banking and credit, business and investment banking, securities brokerage, wealth management and transaction services.
CONTACT: Media: Jennifer Lowney, (212) 793-3141
Investors: Jennifer Landis, (212) 559-2718
Fixed Income Investors: Thomas Rogers, (212) 559-5091
KEYWORD: MEXICO UNITED STATES CENTRAL AMERICA NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: SMALL BUSINESS BANKING PROFESSIONAL SERVICES FINANCE
Copyright Business Wire 2022.
PUB: 01/11/2022 16:11 / DISC: 01/11/2022 16:12
Copyright Business Wire 2022.