The largest US bank, Citigroup, purchased Grupo Financiero Uno, which has a presence in Central America and Panama, according to an announcement by the company Friday. 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 2.1 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. entros de atención al consumidor.  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 aquisition 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 opportunies presented by CAFTA.

This entry was posted on Saturday