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Citi announced through a message to the media its intention to exit the banking operations of consumers, small and medium-sized companies of Citibanamex, in Mexico, as part of its strategic update.
Citi has operated in Mexico for more than 100 years and the country will remain among Citi’s top institutional markets outside of the US, so will continue to invest and grow those institutional banking operations, together with its Private Banking franchise, so it will continue to operate with a local license in Mexico through its global Institutional Clients Group.
Jane Fraser, CEO of Citi, commented: “The decision to exit the consumer banking, small and medium-sized businesses business in Mexico is fully aligned with the principles of our strategy update: we will be able to direct our resources to opportunities aligned with our core strengths and competitive advantages, focus on the businesses that benefit from connectivity to our global network and we will further simplify our bank. “
Fraser explained that: “Mexico is a priority market for Citi, that will not change. We expect Mexico to be an important recipient of investment and global trade flows in the coming years, and we are confident in the country’s trajectory. Citi is uniquely positioned to support cross-border capital markets activity and trade flows in and out of Mexico for our institutional clients and we will continue to make significant investments in our institutional operations and our market leading center there ”.
“The updated strategy that Citi has undertaken will result in a stronger and more focused bank,” said Mark Mason, Citi’s chief financial officer. “We will execute a consumer-driven strategy, double the wealth and focus on our highest performing institutional businesses where we have competitive advantages.”
Before the announcement of the banking institution, a large number of Banamex clients in Mexico have doubts about what will happen to Afore services, credit cards, debit cards, mortgage loans, etc. For them, the answer is that the movements must be transparent and they are completely free to change their banking institution or remain and continue to obtain the services accustomed by Banamex until they are acquired by a banking institution.
The journalist David Paramo, pointed out in Imagen Noticias, that among the Banks that could be interested in acquiring Banamex are Banorte, HSBC and Banco Azteca.
The exit process is subject to various conditions and approvals, including regulatory approvals applicable in both the US and Mexico.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.