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☆ Exclusive: Mexico mulls benefits of Banamex purchase, eyes synergies with state bank
▼ + stars: | 2023-05-31 | by ( Anthony Esposito | ) www.reuters.com time to read: +3 min

U.S. lender Citigroup scrapped its sale of the Banamex unit last week and said it will instead list it, a surprise move coming amid talks to sell the business to Mexican billionaire German Larrea's conglomerate Grupo Mexico (GMEXICOB.MX). "The Finance Minister has asked us to evaluate the different scenarios in which it might be beneficial for Mexico to acquire the bank," Deputy Finance Minister Gabriel Yorio told Reuters. After Citi announced its IPO plans, President Andres Manuel Lopez Obrador said the government could acquire up to half of Banamex. Before Citi's u-turn, banking sources said Grupo Mexico had been eyeing the unit for around $7 billion. "Banamex, in fact, has had a significant deterioration in its payment systems, precisely because it was in this sale process," he said.

Persons: Gabriel Yorio, Andres Manuel Lopez Obrador, Yorio, Lopez Obrador, Banamex, Anthony Esposito, Valentine Hilaire, Dave Graham, Mark Porter, Diane Craft Organizations: MEXICO CITY, Citigroup Inc's, Banco, U.S, Citigroup, Grupo Mexico, Finance, Reuters, United, Citi, Welfare Bank, Thomson Locations: MEXICO, Mexico, German, Kuwait, Saudi Arabia, Oman, Qatar, United Arab Emirates, expropriate

Calling the move "surprising", the transport unit Grupo Mexico Transportes (GMXT.MX) said the Navy had occupied its facilities at the Coatzacoalcos-Medias Aguas section at 6 a.m.(1200 GMT), and that it was weighing up its options. Grupo Mexico Transportes will keep providing services under supervision of the armed forces, it said. The section "expropriated" is about 1.1% of the 11,137 km run by Grupo Mexico's transport division, analysts at brokerage Vector said in a client note. Grupo Mexico, owned by tycoon German Larrea, has been closing in on the acquisition of U.S. Citigroup Inc's retail banking operations in Mexico. Shares in Grupo Mexico were down by more than 4% on Friday afternoon, a drop mirrored by Grupo Mexico Transportes' stock.

☆ Mexican president: 'No problem' if Grupo Mexico buys Citi's Banamex unit
▼ + stars: | 2023-05-16 | by ( Brendan O'Boyle | ) www.reuters.com time to read: +1 min

Lopez Obrador said the mining and transport conglomerate (GMEXICOB.MX) remains one of the possible buyers of the retail banking unit, also known locally as Banamex. Lopez Obrador said he believes several "recommendations" he has for the sale are being met. Reuters reported last week that Grupo Mexico was closing in on a $7 billion deal to purchase Banamex. Lopez Obrador, a leftist economic nationalist, referenced tensions with Grupo Mexico's billionaire magnate German Larrea. When it comes to the sale and purchase of the bank there is no problem," Lopez Obrador said.

☆ Grupo Mexico nearing $7 bln deal for Citi's Banamex unit -source
▼ + stars: | 2023-05-11 | by ( Andres Gonzalez | ) www.reuters.com time to read: +2 min

[1/2] The logo of Banamex bank is on a branch in Mexico City, Mexico, November 17, 2017. As part of the deal, Citi will retain a roughly 10% stake in the Banamex unit, the source said, requesting anonymity as the discussions are confidential. Reuters had reported in February that Grupo Mexico's proposed deal for Banamex could value it at $7 billion or more. Grupo Mexico did not immediately respond to a request for comment. Bloomberg reported on talks advancing between Grupo Mexico and Banamex earlier on Wednesday.

☆ Japan's SMFG boosts U.S. presence via bigger stake in Jefferies
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

April 27 (Reuters) - Japan's Sumitomo Mitsui Banking Corp (SMBC) said it will combine its U.S. equity and M&A business with Jefferies Financial Group Inc (JEF.N) as part of a deal in which its parent, Sumitomo Mitsui Financial Group (8316.T), will boost its stake in the U.S firm and its presence in the country. Sumitomo Mitsui Financial Group (SMFG) will raise its stake in Jefferies from 4.5% currently to as much as 15%, giving it the right to nominate a member to the U.S. company's board of directors, the companies said in a joint statement on Thursday. Its SMBC Nikko Securities unit, formerly Citigroup Inc's (C.N) Japanese broker and a key investment banking unit that SMFG bought in 2009, has a limited footprint abroad. SMFG's bigger domestic rival, Mitsubishi UFJ Financial Group Inc (8306.T), has boosted its U.S. presence through a $9 billion investment in Morgan Stanley (MS.N) in 2008, which gave MUFG some 20% ownership of the Wall Street bank. The Financial Times first reported the news on SMBC and Jefferies.

☆ India's Axis Bank reports wider-than-expected Q4 loss on Citi deal
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +2 min

Axis reported a loss of 57.28 billion rupees ($700.1 million) for the three months ended March 31, compared to a profit of 41.18 billion rupees a year earlier. Analysts had forecast the bank to report a loss of 8.06 billion rupees, according to Refinitiv IBES data. It reported a standalone operating profit, which excludes provisions and contingencies, of 91.68 billion rupees, compared to 64.66 billion rupees a year earlier. The bank's net interest income, the difference between interest earned and expended, grew 33% to 117.42 billion rupees. Provision and contingencies for the quarter stood at 3.06 billion rupees, down from 9.87 billion rupees a year ago.

☆ Citigroup defends revamp as shareholders complain about sluggish stock
▼ + stars: | 2023-04-25 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +2 min

"We completely understand" shareholders' frustration with the share price, he said, after fielding several questions from shareholders on the topic. Still, Mayo welcomed Citigroup CEO Jane Fraser's pledge to receive 85% of her pay in stock, a higher proportion than peers at other banking giants. Separately, Fraser said the sale of Citigroup's Mexican consumer business, known as Banamex, was taking "longer than expected," because of its complexity. The bank is still pursuing two options for the business: a sale or initial public offering, she said. SHAREHOLDER PROPOSALSThe majority of Citigroup shareholders agreed to management proposals to elect board members and pay executives.

That makes the business less than half the size of Bank of America Corp's (BAC.N) Merrill Wealth Management arm, the $18-billion behemoth Sieg ran until he left last month. Another challenge is that Citi has historically been undersized and a bit of a laggard in the space...especially in the wealth business where it’s all about existing relationships." In some ways, Citigroup is playing catchup after selling its old wealth business, Smith Barney, a decade ago to Morgan Stanley, which then leaned heavily into wealth management. That bet paid off - Morgan Stanley's wealth unit, led by Andy Saperstein, brought in record revenue last year. Two years ago, Citigroup unified its various wealth businesses into a single organization led by Jim O'Donnell that included its private bank and personal wealth division.

April 14 (Reuters) - Citigroup Inc's (C.N) first-quarter profit beat Wall Street expectations as it earned more from borrowers paying higher interest on loans. Citi earned $1.86 per share in the first quarter, beating analysts' average estimate of $1.67, according to Refinitiv data. The bank's investment in services to corporations resulted in 31% growth in revenues in treasury and trade solutions. INVESTMENT BANKING BACK? Mason expressed cautious optimism about a recovery in investment banking.

April 14 (Reuters) - Citigroup Inc's (C.N) first-quarter profit beat Wall Street expectations on Friday as it earned more from borrowers paying higher interest on loans. While its net interest income rose 23% to $13.3 billion, Citi also set aside $241 million to cover potential loan losses, from $138 million a year earlier. Net income rose 7% to $4.6 billion, or $2.19 per share, in the three months to March 31 from $4.3 billion, or $2.02 per share, a year earlier. The banking sector was jolted by the collapse of Silicon Valley Bank and Signature Bank last month, which wiped out billions of dollars in market value. Analysts expect an economic slowdown to curb demand for loans and depress net interest margins (NIM) across the industry in the coming quarters.

☆ Citigroup profit beats estimates on higher interest income from loans
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +2 min

April 14 (Reuters) - Citigroup Inc's (C.N) first-quarter profit beat Wall Street expectations on Friday as it earned more from borrowers paying higher interest on loans, benefiting from a tighter monetary policy by the Federal Reserve. The banking sector was jolted by the collapse of Silicon Valley Bank and Signature Bank last month, which wiped out billions of dollars in market value. Its loans also fell marginally to $652 billion, while its net interest income rose 23% to $13.3 billion. Analysts expect an economic slowdown to curb demand for loans and depress net interest margins (NIM) across the industry in the coming quarters. Net income rose 7% to $4.6 billion, or $2.19 per share, in the three months to March 31 from $4.3 billion, or $2.02, a year earlier.

April 11 (Reuters) - Mark Shafir, one of Citigroup Inc's (C.N) top dealmakers, is retiring after a career spanning over three decades during which he advised some of the world's largest corporations on several landmark deals. Shafir, who has led Citi's global mergers and acquisitions unit since joining the bank in 2008, will stay on till mid-May to help with the transition, according to an internal memo sent on Tuesday by Tyler Dickson and Manuel Falco, Citi's global co-heads of banking, capital Markets and advisory. Cary Kochman, who has served as co-head of global M&A at Citi alongside Shafir since 2017, will continue to lead the franchise. "(Mark) has been one of the lead drivers of our M&A business and has played a central role developing the franchise, which grew significantly under his leadership," Dickson and Falco said in the memo. Shafir was instrumental in shaping Citi's M&A franchise during his tenure and advised on several landmark transactions.

March 16 (Reuters) - First Republic Bank's (FRC.N) shares fell 17% in extended trading on Thursday, despite an unprecedented show of support in the bank from nearly a dozen of the world's largest financial institutions. The bank's shares, which had closed 10% higher after a volatile day that saw trading halted 17 times, slumped in after-market trading. Jason Ware, chief investment officer for Albion Financial Group, said the Dimon-led banking sector intervention on Thursday was a "shot in the arm of the system" but likely more was needed. A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. The bank's shares have been hit hard in recent days in the aftermath of the collapse of Silicon Valley Bank.

The planned rescue package was discussed by Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and JPMorgan Chase & Co. (JPM.N) CEO Jamie Dimon on Tuesday, according to a source familiar with the situation. A central player in the deal was Rodgin Cohen, a veteran lawyer at Sullivan & Cromwell, two sources familiar with the matter said. A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. Other lenders including BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank channeled $1 billion of deposits into the San Francisco-based lender. Federal Reserve Board Chair Jerome Powell said the Fed was always ready to provide liquidity through its discount window.

☆ Axis Bank completes deal to buy Citi's India consumer business
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +1 min

The deal value of 116.03 billion rupees ($1.41 billion) is based on the closing position of assets, assets under management and liabilities of Citi's portfolio as of Jan. 31, Axis Bank said. The consideration was subject to changes in the business' position since then, said Axis Bank. "Citi India consumer banking customers are now served by Axis Bank," Citibank said on its website. Shares of Axis Bank rose 2.2% on Wednesday in their biggest intraday advance in four weeks. Axis Bank will hold a press conference on the deal after the market closes on Wednesday.

☆ Citigroup's wealth arm stops margin loans on Adani securities - Bloomberg News
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

Feb 1 (Reuters) - Citigroup Inc's (C.N) wealth arm has stopped accepting securities of billionaire Gautam Adani's group of firms as collateral for margin loans following short seller Hindenburg Research's report, Bloomberg News reported late Wednesday. Citigroup declined to comment on the report. Reporting by Rishabh Jaiswal in Bengaluru; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

☆ Citigroup technicals indicate rally may extend even as Wall Street remains wary
▼ + stars: | 2023-02-01 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

Feb 1 (Reuters) - Citigroup Inc's shares (C.N) are approaching a potential bullish technical signal which indicates that this year's 14% rally could continue, even as some analysts remain critical of the bank's fundamentals. The technical signal, called a "golden cross", forms if the stock's 50-day moving average goes above its 200-day moving average. On Jan. 23, Citi shares touched their highest since August. The one-month moving average of puts-to-calls traded has dropped to 1.07-to-1, down from 2.6 puts traded for every call late last year, according to Trade Alert data, signaling less bearishness. "The bank is still very much in the build-up of expenses and early stages of reinvesting in their franchises."

Feb 1 (Reuters) - Grupo Mexico (GMEXICOB.MX), the conglomerate controlled by billionaire German Larrea, has secured a $5 billion debt package for its proposed acquisition of Citigroup Inc's (C.N) retail operations in Mexico, according to people familiar with the matter. The move represents a major milestone in Grupo Mexico's efforts to put together the deal for Banamex, the unit that encompasses the Citigroup assets. Several banks, including Barclays Plc (BARC.L) and HSBC Holdings Plc (HSBA.L), have pledged to provide the debt financing, the sources said. Citi, Grupo Mexico, Barclays and HSBC declined to comment. Citi stepped back from conversations with Becker to prioritize a potential deal with Larrea, according to sources.

Rising interest rates roiled markets last year and global investment banking revenue sank more than 50% from a year-earlier quarter, according to data from analytics firm Dealogic. SHARPLY LOWERAcross the board, investment banking fees were sharply lower. Morgan Stanley's revenue from investment banking business fell 49% in the fourth quarter while Goldman Sachs's investment banking fees fell 48%. JPMorgan's investment banking unit saw its revenue down 57%, Citigroup Inc's (C.N) investment banking revenue plunged 58% while Bank of America Corp (BAC.N) investment banking fees more than halved. Strength in trading helped offset a slump in investment banking, while interest rate hikes by the U.S. Federal Reserve helped income.

☆ Big U.S. banks continue to add jobs as Goldman Sachs cuts staff
▼ + stars: | 2023-01-14 | by ( ) www.cnbc.com time to read: +3 min

The chief financial officers of the two biggest U.S. banks said they would hire selectively despite waning economic growth. JPMorgan's Chief Financial Officer Jeremy Barnum said the bank is still hiring and "in growth mode" in a call with journalists to discuss the bank's fourth-quarter earnings. Bank of America also continues to hire, particularly in wealth management, while also remaining disciplined on its expenses, Chief Financial Officer Alastair Borthwick told reporters on Friday. Citigroup Inc's Chief Financial Officer Mark Mason told an earnings briefing "we're actively hiring to execute against our strategy. The banking giants stood by their hiring plans even as other lenders cut staffing in investment banking and mortgages.

☆ Uralsib completes purchase of Citi's Russian consumer loan portfolio
▼ + stars: | 2022-12-12 | by ( ) www.reuters.com time to read: +1 min

MOSCOW, Dec 12 (Reuters) - Russian commercial bank Uralsib said on Monday it had completed the acquisition of a portfolio of consumer loans from Citigroup Inc's (C.N) Russian unit, as the major U.S. lender reduces its exposure to Russia on the way to a full exit from the country. "The acquired portfolio includes unsecured consumer loans, which going forward will be serviced by Uralsib Bank from the moment of purchase," Uralsib said in a statement. Privately-owned Uralsib, among Russia's top 30 banks by assets, said the loan portfolio had high credit quality, giving it the opportunity to increase its client base in Moscow and St Petersburg. Citi said in October it would also sell a portfolio of credit card balances, if it secures customers' consent. Citi last year agreed to shed its retail operations in Russia as part of an overhaul led by Chief Executive Jane Fraser.

☆ Citigroup targets more deals in Gulf region
▼ + stars: | 2022-11-22 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: +2 min

The Gulf region has become a bright spot for public share sales this year, boosted by high oil prices and government-led privatisation programmes. The growth in Gulf equity capital markets is in sharp contrast to the United States and Europe, where global banks have been trimming headcount in a dealmaking drought. Citigroup moved its director for power, renewables and utilities, Omar El Duraie, to Dubai from London this year . "This year the region has been extremely active while the rest of the world has been on pause," he told Reuters. Others expanding in the Gulf include Rothschild & Co (ROTH.PA), which has opened an office in Saudi Arabia, while Goldman Sachs (GS.N) is hiring bankers for its wealth management and investment banking businesses in the region.

The bid amounts for the unit, known too as Banamex, were not disclosed by the sources. The sources also cautioned that no deal was guaranteed with any party and Citigroup could ultimately decide to sell Banamex shares on the Mexican Stock Exchange instead. Inbursa and Grupo Mexico declined to comment. Backed by Slim, Mexico's richest person, Inbursa was flagged as a strong contender when Citigroup put Banamex up for sale in January. However, mining tycoon Larrea has the firepower to compete as a candidate to buy Banamex, the sources said.

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