Citigroup Inc. (C) agreed to sell its consumer-banking business in Honduras to Banco Financiera Comercial Hondurena SA as the third-largest U.S. lender scales back in some countries. Terms weren’t disclosed.
The sale of two units, Banco Citibank de Honduras SA and Cititarjetas de Honduras, includes all of Citigroup’s credit cards, personal loans and customer deposits in that country, the companies said today in a statement. The deal makes Banco Ficohsa the nation’s largest lender and doesn’t include Citigroup’s corporate-banking business there, they said.
“We are not leaving Honduras,” Reina Irene Mejia, Citigroup’s general manager in the nation, said in the statement. “Our strategy is to focus our operations on the corporate-banking business to strengthen our position and continue offering top-level services in the segments where we can offer the most value.”
Citigroup Chief Executive Officer Michael Corbat, 53, is selling and scaling back consumer businesses in some emerging markets as part of a plan to cut costs. The New York-based lender’s consumer-banking operations, run by co-President Manuel Medina-Mora, 63, have more than 4,000 branches in about 40 countries, according to the firm’s website.
Citigroup has had a presence in Honduras for more than 48 years, and the sale requires regulators’ approval, according to the statement.