Citigroup Expects Sale of Some South America Retail Units in September
05 August 2016 - 3:10AM
Dow Jones News
RIO DE JANEIRO—Citigroup Inc. expects to announce the sale of
some of its South America retail operations by mid-September, said
Helio Magalhã es, president of the bank's Brazilian unit.
Citi said in February that it planned to sell its consumer
operations in Brazil, Argentina and Colombia.
"We should have at least a month ahead of us before we make a
formal announcement," Mr. Magalhã es said during an event in Rio de
Janeiro. "It should be in the middle of September."
The head of Banco Santander Brasil, the Brazilian unit of
Spain's Banco Santander SA, said last week it would probably
present a bid for Citibank's operation in Brazil.
Brazilian banking giant Itau Unibanco Holding SA's vice
president for Latin America, Ricardo Marino, told reporters in
April that I tau was considering making an offer for the Citi
assets.
Citi has long struggled to compete in Brazil, even during the
economic and lending boom that preceded the current recession,
because of high costs associated with operating in the South
American country and what insiders have called a weak strategy for
dealing with the country's compliance quirks.
Brazil's banking industry is highly concentrated in five banks:
Itau; Banco Bradesco SA; two government-owned giants, Banco do
Brasil SA and Caixa Economica Federal; and Santander. Together they
control almost 70% of the assets in the Brazilian financial
system.
Citi's business in Brazil has just 1% of the financial system's
assets, according to central bank figures.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
August 04, 2016 12:55 ET (16:55 GMT)
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