Breaking News

Tweet TWEET

Citigroup to Sell Honduras Consumer-Banking Business to Ficohsa

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.

To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net Dan Reichl

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.