Banorte Considering Option Of Purchasing Citi’s Mexico Consumer Bank

Mexico’s Grupo Financiero Banorte is considering possibilities of making a bidding offer for the Mexican consumer banking unit of Citigroup, said the Mexican company’s chief executive said.

“We are starting an analysis of this opportunity, and if we find that a possible transaction adds value to shareholders, we would submit it for their consideration,” Banorte Chief Executive Marcos Ramirez told a news conference.

In an announcement last week, Citigroup declared that it would be divesting off its Citibanamex consumer banking operations after being operational in Mexico for more than two decades. That announcement prompted Mexican President Andres Manuel Lopez Obrador to urge the country’s domestic investors to purchase the assets of Citigroup in the country and bring the bank under the control of a Mexican owner.

Previously Banorte had said that it anticipates increasing its net income by as much as 17.3 per cent in 2022. It also reported higher net income and revenue for the fourth quarter of 2021 when compared to the figures for the same period a year ago.  

Citigroup is also the owner of one of the largest banks and pension funds in Mexico. In a presentation along with its quarterly results, the group said that it wants to achieve a net income of between 39.5 billion pesos and 41.1 billion pesos for 2022. In contrast, it had made a net income of 35 billion pesos last year.

The company also said that it has set a target of expansion of loans to grow at a rate of between 7 per cent and 9 per cent for the current year.

A net profit of 9.1 billion pesos ($441.8 million) was also reported by Banorte for the fourth quarter of 2021 which was almost 52 per cent higher compared to the net profit by it for the same period a year ago.

In the months of October to December, revenues totaled 26.6 billion pesos, increasing nearly 7 per cent from the previous year.

(Adapted from MoneyControl.com)

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