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Jane Fraser, CEO of Citigroup, announced that the sale of Banamex will begin in the spring

Jane Fraser, CEO of Citigroup, announced this Friday that the sale of Banamex will begin in March.  Photo: Bloomberg
Jane Fraser, CEO of Citigroup, announced this Friday that the sale of Banamex will begin in March. Photo: Bloomberg

next month of March will start the sale of Banamex, advertisement Citi Group this Friday. Jane Fraser, CEO of the American financial giant, mentioned that the decision to leave Mexico is part of a strategy that seeks better returns to shareholders, so the retail business does not conform to it.

Jane said that it will not be a simple transaction, but that in the last few months work has been done to obtain the best results for its shareholders. “It will not be a simple transaction. In recent months we have worked to obtain the best results for our shareholders. The separation process will begin immediately and we expect the sale process in the spring,” he explained.

Previously, in a meeting with the media, Mark Mason, CFO of Citi Group, that is, the CFO, explained that the analysis of the sale of Banamex in Mexico it was a decision he had several months of study, and it was concluded that it was the best thing for the shareholders.

“Mexico is a franchise with very good returns, we believe it has great value,” explained Mason.

The logo of Citibanamex is pictured at a bank branch in Mexico City, Mexico January 13, 2022. REUTERS/Gustavo Graf
The logo of Citibanamex is pictured at a bank branch in Mexico City, Mexico January 13, 2022. REUTERS/Gustavo Graf

Also, he reiterated that the plan to leave the country is in line with the business plans of Citi Group, by keeping the institutional Business, so keep the retail business in Mexico it was no longer in line with the bank’s plan globally.

The bank also disclosed that will sell the consumer business in Indonesia, Malaysia, Thailand and Vietnam, To the group Singapore UOB, By a sum of USD 3.7 billion.

Last Tuesday January 11 Citigoup announced his departure from consumer banking, as well as of the small and medium enterprises (SMEs) in Citibanamex. In this way, the most important financial company in the world specified that its intention is to focus its business on global wealth and have a specific retail presence in USA.

After the information released by the US company, an end to the union between the foreign financial company and the National Bank of Mexico (Banamex), which will be put up for sale along with its assets, as explained in a video press conference Alberto Gomez Alcala, executive director of Economic Studies and Communication of the Banamex-Citigroup Financial Group.

Citibanamex headquarters in Mexico City, Mexico 05/04/2017 REUTERS/Henry Romero
Citibanamex headquarters in Mexico City, Mexico 05/04/2017 REUTERS/Henry Romero

“They will remove the institutional business for a new banking license; everything else will be sold to the highest bidder,” said the manager. In addition, He explained that the sale will include the name of the bank, the branches and the ATMs. In this way, Citigroup will only own the property banking, while the Afores, brokerage houses and retail businesses, including credit portfolios, cards and credit to SMEs, in addition to the great cultural heritage that it has, will be sold in its totality, then the company specified that they do not plan to sell Banamex in parts.

An analysis note from BofA Global Research indicated that the value of Citibanamex stands between USD 12,500 and 15,500 million.

The National Commission for the Protection and Defense of Users of Financial Services (Condusef) issued comments on the subject, after there is some kind of speculation regarding the effects that more than 22 million customers they have in their wallet.

The commission stated that “it is extremely important that the bank’s clients and users know that the sales process does not imply doing it in a fragmented manner”, with the aim of implying that Bank functions for the general public will not be cut while a buyer is found.

People stand outside a Citibanamex bank branch in Mexico City, Mexico January 13, 2022. REUTERS/Gustavo Graf
People stand outside a Citibanamex bank branch in Mexico City, Mexico January 13, 2022. REUTERS/Gustavo Graf

“It is a brand that is worth a lot, it has almost 22 million clients and, due to its size, is considered a systemically important institution. The sale operation will be, as they say, a “business in progress”, operating, doing business, improving and serving people as it has always done and therefore, your customers don’t have to worry”, the institution pointed out through a statement.

In the same text they stated that Citibanamex positioned itself at the end of 2021 as the bank with “higher level of resolution in favor of the user”, a statistic that is used to assess performance with customers, since it also maintained a low rate of complaints and with little delay in dealing with a complaint.

Below this line, the Condusef will continue to attend any type of request, complaint or clarification that is related to the bank, before and even after the sale of Citibanamex, for which he reminded users that the institution has the obligation to maintain the entire operation for the time being.

“It is necessary to point out that the bank, must comply day by day with all the regulations that apply to the banking sector and that supervisory authorities such as the National Banking Commission and Securities, the Bank of Mexico and her own Secretary of Finance They must participate stealthily and directly in this entire sales process, taking care of the interest of the public and their clientele,” he said.

KEEP READING:

Citibanamex will exit the consumer and corporate banking business in Mexico
What does the Condusef say about the sale of Citibanamex and its impact on users
“To the highest bidder”: Citi announced that it will put Banamex up for sale

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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