Citigroup Inc (NYSE:C) is trading up 1.64% at 67.11
Citigroup Inc (NYSE:C) will exit its Citibanamex consumer banking business in Mexico, the bank said on Tuesday ending its 20-year retail presence in the country that was the last of its overseas consumer businesses.
Citigroup’s decision to sell or spin off Citibanamex, Mexico’s third biggest bank by assets as of June, is part of chief executive Jane Fraser’s strategy to bring Citigroup’s profitability and share price performance in line with its peers.
After taking up the top job last year, Fraser pledged to simplify Citigroup by exiting non-core businesses, including consumer franchises in 13 markets in Asia, Europe, the Middle East and Africa. While Citigroup’s Mexican exit was not part of the announced plan it is consistent with that “strategy refresh,” Fraser said on Tuesday.
Citigroup will retain its institutional client business in Mexico, as it has in other overseas markets. It will focus its consumer banking business on a targeted U.S. retail presence, global wealth management, and payments and lending, it said.
The bank’s acquisition of Banamex for $12.5 billion in 2001 was the largest ever in Mexico at the time and came amid a wave of foreign purchases after an economic crisis devastated the country’s banking sector in the mid-1990s.
Mexican billionaire Ricardo Salinas Pliego, who is ranked as the country’s third-richest man with a family fortune estimated in excess of $15 billion by Forbes, said he was analysing if it was possible to acquire Citibanamex.
Other possible buyers for Citibanamex could come from Canada, where the big six banks have excess cash to spend on deals. Bank of Nova Scotia already has a sizable Mexico business.
On technical fronts Citigroup Inc (NYSE:C) RSI stood at 87.75 and currently stock is trading above all MA. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : Citigroup Inc (NYSE:C) – BUY: 67.22, TARGET: 68.10, STOP LOSS : 66.19