Itaú Unibanco announced this weekend they bought Citibank’s retail operation in Brazil for R$ 710 million.
In material fact, the bank said it signed an agreement to acquire the retail business, aimed at individuals, including loans, deposits, credit cards, agency, asset management and insurance brokerage.
The purchase also includes the shareholdings held by Citibank in TECBAN – Banking Technology SA (5.64% of its share capital) and Cibrasec – Brazilian Securitization Company (3.60% of its share capital).
With the operation, the retail division will be separated from Citibank conglomerate.
Citibank posses 71 branches in Brazil and 315,000 customers. In December 2015, it was evaluated at R$35 billion in assets under management, 1.1 million credit cards and R$6 billion loan portfolio.
Citigroup said it planned to sell its retail bank in Brazil in February this year. It also seeks to dispose of operations in Argentina and Colombia, and in July, it closed the accounts operated in Venezuela.
“We decided to focus our efforts on opportunities with our institutional clients in these countries. We will allocate our resources where they can generate better return opportunities for shareholders,” said the chief executive of Citi, Michael Corbat at the time.
Just like Itaú, Santander was also evaluating the assets. With this acquisition, Itaú Unibanco will have R $ 1,404 billion in assets.
In August last year, Bradesco acquired the Brazilian operations of HSBC for $5.2 billion, approximately R$ 17.7 billion.