Citibank officials announce new investment and name change. Bank officials announce new investment and name change.

Citigroup to invest $1bn in Mexico unit

Banamex will also be renamed Citibanamex in bid to reaffirm commitment to Mexico

The American financial services company Citigroup has reaffirmed its commitment to its Mexican subsidiary Banamex with a massive cash injection and renamed it Citibanamex.

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The name change and a US $1-billion investment in technology and upgrading branches was announced today by Citigroup Inc. CEO Michael Corbat, “to reaffirm our commitment to Mexico and our confidence in its prospects.”

The announcement comes as an investigation continues into a $400-million fraud by oil services firm and Pemex supplier Oceanografía that surfaced in 2014.

The new investment in Mexico, which comes as Citigroup gets out of retail banking in Brazil, Argentina and Colombia, will be focused on digital banking, technology platforms, branch updates, automated teller machines and the improvement of products and services, the company said in a statement.

More than 2,500 new ATMs will be installed and 100 new branches opened, the latter primarily in Mexico City, Guadalajara and Monterrey.

The investment will take place between now and 2020 and is in addition to a $1.5-billion injection announced in 2014.

Reuters reported today that some Citigroup investors have questioned the wisdom of keeping the Mexican subsidiary in light of U.S. presidential candidate Donald Trump’s statements on restricting trade with Mexico.

However, its return on shareholder equity is about 15%, well above Citibank’s target of at least 10% for the whole bank.

Citibanamex is Mexico’s second largest bank with almost 1,500 branches and 7,500 ATMs.

Source: Bloomberg (en), Forbes (sp), Reuters (en)

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  • James Smith

    it has nothing to do with commitment and everything to do with who is paying the bills and expenses. the surprise here is that citibank, the largest usa bank, waited this long to begin changing the name of banamex. bva did it years ago with their locally owned bank in mexico. you know immediately upon entering banamex that it is american owned. same arrogant and condescending attitude the parent has towards its customers in the states.

    • Awww, Jim. I had a Banamex account for over a decade where I live in Pátzcuaro. I found the employees universally pleasant and cooperative. I had major problems with other Banamex issues, however, so I finally dumped Banamex and went to Bancomer, which is far better run.

      But the folks at Banamex were not arrogant or condescending at all. Maybe things are different where you live.

      • James Smith

        well I have tried them in several locales and each time bad experience. I even told a group of them (in Spanish) that the people from new york must have trained them. they agreed without knowing why I would bring up the subject. I personally also like bancomer.

        • Dan Tucker

          I, too had a Banamex account for a short while. Like their American counterpart it is the worst bank in the world. (Big is not always better, and I am from Texas.) They overcharge for everything. Be careful if you enter their building, they will soon start applying a fee to breathe the air. Nothing but a pack of thieves!

          • James Smith

            the only bank atm which always says they cannot read my card. the only atm which has stolen money out of my usa account. they learned well from the big boys in new york.

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