Citigroup Buys Banco Uno
The largest US bank,
Citigroup, purchased
Grupo Financiero Uno,
which has a presence in
Central America,
according to an
announcement by the
company. The amount of
the transaction was not
stated, and it is
subject to approval by
regulatory agencies.
Grupo Uno owns Banco Uno
and Aval Card in Costa
Rica. It also has
operations in Guatemala,
Honduras, Nicaragua,
Panama and El Salvador.
It has a capital of
us2.1 billion dollars
and over 1 million
clients, principally in
credit cards, 75
branches, 100 offices
and points of sale.
Citigroup operates in 24
nations in Latin
America, with over 1600
branches and 500
customer service points.
One of its strengths is
consumer banking, and
this is the motive
behind the purchase of
Grupo Uno – with its
high market penetration
in credit cards - and
important step for
positioning Citigroup in
the isthmus.
Manuel Medina-Mora,
executive president of
Citigroup Latin America
& México, stated that
the acquisition was a
platform for expansion
in the region.
Medina-Mora commented
that with the purchase
of the Grupo Uno,
Citigroup widened its
opportunities and
geographic reach in this
region.
The Citigroup foray into
this area was expected
earlier by local
bankers, but it was
delayed. The purchase is
proof of a more
aggressive strategy by
Citigroup in Latin
America. This tendency
accelerated after
Citigroup decided to
concentrate the
administration of its
Latin subsidiarias in
Mexico rather than New
York.
Local experts think that
with a more active
Citigroup, the level of
competition will rise,
as will the quality of
services and the
regulatory standards,
all of which will
benefit the consumers in
the region.
This adquisition follows
earlier purchases by GE
Consumer Finance of the
Grupo BAC; Scotiabank of
Corporación Interfin,
and the recent purchase
of Banistmo de Panamá by
HSBC of England.
Bankers expressed that
this transaction
confirms support in the
region by the large
international banks and
companies, due to the
opportunities presented
by the free trade
agreement or CAFTA. |
