Citi has reached a definitive agreement to sell its consumer banking business in Brazil to Itaú Unibanco, and its consumer banking business in Argentina to Banco Santander Rio subject to regulatory approvals.
The sale in Brazil, where Citi has operated for over a century, constitutes approximately US$2.8 billion in assets for Citi and includes credit cards, personal loans and deposit accounts, as well as Citi Brazil's retail brokerage business. Citi's consumer banking operations in Brazil will continue to operate in the ordinary course through the transition to Itaú Unibanco. Upon the conclusion of the transaction, Citi will continue serving clients of its corporate and investment bank, commercial and private bank businesses in the country.
"Brazil is a strategic market for Citi and is an essential part of our footprint and global network," said Jane Fraser, Citi Latin America CEO. "We have been in Brazil for more than 100 years and we will continue to grow our market leading franchise serving our institutional and private bank clients, leveraging our global presence and generating better returns on our assets and capital for our shareholders."
The sale in Argentina involves approximately US$1.4 billion in assets for Citi and includes credit cards, personal loans and Citi Argentina's retail brokerage business, as well as deposit accounts. Citi's consumer banking operations in Argentina will continue to operate in the ordinary course through the transition to Banco Santander Rio. Citi will continue serving its commercial banking and corporate and investment banking clients in the country.
"Argentina is one of Citi's most important markets in Latin America and its future is extraordinarily promising," said Fraser. "We have been in Argentina for more than 100 years and are committed to supporting growth and progress in the country. We will continue to invest in and grow our market leading institutional franchise there as recently announced by our CEO Mike Corbat."
Meanwhile, last week, Citi announced that it will invest more than US$1 billion in its Mexican business, historically known as Banco Nacional de México or Banamex and now called Citibanamex. Fraser then said, "Citibanamex will honor our rich history in the country while acknowledging that together we offer more talent, experience and ideas that will help enable economic growth and progress for Mexico."