Banorte analyzes possible purchase of Mexican consumer bank from Citi


The logo of Grupo Financiero Banorte is pictured at its headquarters in Mexico City, Mexico August 10, 2017. REUTERS/Ginnette Riquelme

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MEXICO CITY, Jan 20 (Reuters) – Mexico’s Grupo Financiero Banorte (GFNORTEO.MX) is considering a bid for the Mexican retail banking unit of Citigroup (CN), its chief executive said on Thursday.

“We are beginning an analysis of this opportunity, and if we find that a possible transaction adds value to shareholders, we will submit it for their consideration,” Banorte chief executive Marcos Ramirez told a conference call. hurry.

Citigroup announced last week that it would sell its consumer banking business Citibanamex, ending a two-decade retail presence in Mexico and prompting Mexican President Andres Manuel Lopez Obrador to call on domestic investors to buy up the assets and “Mexicanize” the bank. Read more

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Banorte said earlier that it expects to increase its net profit in 2022 by 17.3% and posted higher net profit and revenue in the fourth quarter of 2021 compared to the year-ago period.

The group, which owns one of the country’s largest banks and pension funds, said in a presentation accompanying the quarterly results that it was targeting net profit between 39.5 billion pesos and 41.1 billion pesos for 2022, compared to a total of 35 billion pesos last year.

Additionally, the company said it expects lending to grow between 7% and 9% over the year.

For the fourth quarter of 2021, Banorte reported net profit of 9.1 billion pesos ($441.8 million), up nearly 52% from the same period a year earlier.

Revenues amounted to 26.6 billion pesos from October to December, up nearly 7% from a year earlier.

($1 = 20.5075 pesos at the end of December)

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Reporting by Noe Torres and Daina Beth Solomon; edited by Alistair Bell and Richard Pullin

Our standards: The Thomson Reuters Trust Principles.

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