Citigroup (C) Enters Agreement to Sell Consumer Business in Argentina

October 10, 2016 7:52 AM EDT

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Citi (NYSE: C) announced that it has reached a definitive agreement to sell its consumer banking business in Argentina to Banco Santander Rio subject to regulatory approvals. Citigroup does not expect the financial terms of the transaction to be material to its earnings.

The sale involves approximately US$1.4 billion in assets for Citi in Argentina and includes credit cards, personal loans and Citi Argentina’s retail brokerage business, as well as deposit accounts. Citi’s consumer banking operations in Argentina will continue to operate in the ordinary course through the transition to Banco Santander Rio. Citi will continue serving its commercial banking and corporate and investment banking clients in the country.

“Argentina is one of Citi’s most important markets in Latin America and its future is extraordinarily promising,” said Jane Fraser, Citi Latin America CEO. “We have been in Argentina for more than 100 years and are committed to supporting growth and progress in the country. We will continue to invest in and grow our market leading institutional franchise there as recently announced by our CEO Mike Corbat.”

Citi intends to focus on the best-in-class services it offers to Argentine corporations, financial institutions, and public sector clients, as well as continuing to service its multinational clients with operations in Argentina and its commercial banking clients. Citi recently announced the extension of US$3.5 billion of new credit for corporate and institutional clients in the country – including both multinationals based in Argentina and Argentine companies.

Citi Argentina’s institutional business, which serves more than 1,300 clients, has been recognized in recent industry polls for its performance in investment banking, foreign exchange, cash management services and trade finance, and for actively providing financial services to the public sector, including Citi’s participation in providing financing to the Central Bank of Argentina, as well as the sovereign bond issue to pay holdouts, and for underwriting bonds for the provinces of Buenos Aires, Salta and Mendoza.

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