“Once the IPO is completed, Banamex will not have the support of Citigroup. However, we estimate that although these risk factors exist, the new bank will still have significant strength, especially due to its high participation in credit cards and its broad deposit base,” Moody’s said in a report.
The rating agency adds that Citibanamex is the fourth market participant in terms of credit portfolio and has a “very relevant” deposit franchise, with close to 15% of the system, as of March 2023.
Its credit card business represents about 24% of the portfolio in Mexico, which makes it the second largest bank in the system in this portfolio in the reference period, he explained.
“Banamex has a wide distribution network that includes around 1,300 branches, 9,000 ATMs, 12.7 million consumer banking clients, 6,600 business banking clients and 10 million third-party afore holders, making it the third largest Afore in Mexico”, Moody’s said.
For its part, Bank of America (BofA) considered Citi’s decision to sell Banamex on the stock market positive because it reduces the risks of government intervention in the process, although it warned that other banks continue to gain market share while Banamex prepares to its sale.
The announcement of the sale of Banamex seems to have had the opposite effect among the bank’s customers , since in the last year the number of accounts had a reduction of almost 1,400; however, it increased the number of its workers, ATMs and even the issuance of credit cards, according to figures from the National Banking and Securities Commission (CNBV).