Wednesday, 25 November 2020

Citi Sells Nicaragua Businesses

Citi will sell Banco Citibank de Nicaragua SA and Cititarjetas de Nicaragua to Panama-based GFF.
Citi will sell Banco Citibank de Nicaragua SA and Cititarjetas de Nicaragua to Panama-based GFF.

TODAY NICARAGUA – Citigroup has agreed to sell its Nicaraguan businesses to Panama-based Grupo Financiero Ficohsa (GFF), in its latest disposal of overseas assets to cut costs and boost profits.

Citi will sell Banco Citibank de Nicaragua SA and Cititarjetas de Nicaragu to GFF.

- Advertisement -

The sale includes commercial loans, personal loans, deposits and credit cards.

GFF encompasses the largest bank and insurance business in the Honduras, alongside banks in Guatemala and Panama, and financial services in the US.

The terms of the deal were not disclosed but a GFF statement said that Citi’s operations in Nicaragua include $255m (£171.3, €232.4m) in assets, a loan portfolio of $171m, deposits worth $197m and over 600 employees.

The deal still has to be approved by regulators in Nicaragua and Panama.

- Advertisement -

Camilo Atala, president of Grupo Financiero Ficohsa, commented: “This acquisition is another important step in our expansion strategy, which further strengthens our position as one of Central America’s top 10 financial groups. It also allows us to enter a country with great potential for growth, with a robust and well-positioned operation.

“Additionally, we are well acquainted with the process, after the successful integration of Citi’s consumer banking business in Honduras, which was conducted smoothly for both clients and employees.”

The Wall Street giant’s stock has lost some 6.31% so far this year.

Asset disposals

Citigroup, on 5 March, said it has sold its nearly 10% stake in Turkey’s Akbank for $1.2bn.

Earlier in the month, Citi announced the sale of its consumer finance unit OneMain Financial Holdings to US-based subprime lender Springleaf Holdings for $4.25bn in cash, a deal that will narrow the US bank’s focus.

- Advertisement -

In February, Citi’s retail operations in the Czech Republic drew interest from five Czech lenders.

In December 2014, Citi agreed to sell its Japanese retail banking operations to Sumitomo Mitsui Banking (SMBC) in a withdrawal from unprofitable businesses the world over.

In October, the third-largest US bank announced its intention to exit the consumer sector in 11 different markets in a bid to slash costs.

In April, GFF bought Banco Citibank and Cititarjetas in Honduras.

Source: Ibtimes.co.uk

- Advertisement -
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

19 dead and 45 injured in traffic accident in Waslala, Matagalpa

TODAY NICARAGUA – The overturning of a truck left 16 people...

4 killed, 48,000 evacuated as Hurricane Iota Tears Across Nicaragua

TODAY NICARAGUA – The damage from Hurricane Iota in Nicaragua is...

MOST READ

Puntarenas reaches the highest number of homicides in the last five years

QCOSTARICA - With the homicide of a 61-year-old man this Sunday, in Puntarenas, the province reaches 77 murders, the highest number in the last...

Covid-19 in Costa Rica: 1,187 new cases for Friday; concern for rise in hospitalizations

QCOSTARICA - Alone at the conference table from Casa Presidencial, the Minister of Health, Daniel Salas, made the rare appearance lately to provide us...

American Airlines eliminates change fees in trips from Central America

QTRAVEL - American Airlines announced on Thursday, November 19, the immediate elimination of the US$200 fee for changing the ticket from Central and South...

State of the Nation report: “The situation was already fragile before the pandemic.”

QCOSTARICA - The evidence collected by the Programa Estado de la Nación (State of the Nation Program) in its latest report confirms that Costa...

On the Back of the Pandemic, the Militarization of Latin America is Gathering Momentum, Analysts Warn

(QREPORTS) During the Covid-19 pandemic, armed forces in Latin America have been taking on essential tasks: manufacturing protective equipment, delivering food and treating civilians...

Covid-19 in Costa Rica: 1,219 new case on Thursday; total now 128,231

QCOSTARICA - The Ministry of Health reported for Thursday, November 19, 1,129 new cases of covid-19 in Costa Rica, for a total now of...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.