Banco del Bajio SA

Citi’s Mexican Exit; Our Thoughts on “new Banamex”

Event-Driven
163 Views, 19 Jan 2022 03:28
EXECUTIVE SUMMARY
  • Citi is to sell its Mexican retail and SME banking operations, which we call new Banamex; it is an attractive banking franchise that needs investment and a focus on costs
  • Based on peer group valuations, and on new Banamex’s disclosed parameters, we estimate that the disposal entity’s valuation range could range from USD7bn to USD10bn, and we identify potential bidders
  • We believe that our new Banamex valuation range emphasizes BanBajio’s attractive valuations, we stick with our positive view on mid-cap BanBajio; we believe that Banorte is fully valued
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Victor Galliano
Financials & FinTech, EM & Southern Europe
Galliano's Latin Notes
FinancialsEquity Bottom-UpThematic (Sector/Industry)

Victor Galliano is an experienced equity banks analyst, having covered Latin America banks and non-bank financials for o... 

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