Banamex Sees Double-Digit Consumer Credit Growth Amy Guthrie - Dow Jones
go to original October 31, 2012

MEXICO CITY - Citigroup Inc.'s Mexican unit expects this year's trend of strong consumer credit growth to continue through 2013, as the Mexican economy proves resilient and demand for loans rises further from a low base of credit penetration.

Banamex, which supplies around 12% of Citigroup's annual net profit and is Mexico's second-biggest bank, grew its credit portfolio by 14% on the year in the third quarter, and 7% in the first nine months of the year, to end September with a credit portfolio worth 417 billion pesos ($32 billion).

Credit to families via mortgages, credit cards and payroll loans drove much of that growth, with the family segment's loan portfolio rising 22% on the year in the quarter, to MXN205 billion, Banamex Chief Executive Javier Arrigunaga said, adding that he sees similar growth through 2013.

Credit to private sector companies expanded a more moderate 5% on the year in the quarter, to MXN171 billion, as Mexican corporates saw strong appetite for their debt issuances in capital markets.

The bank's deposits rose 7% on the year, to MXN1.39 trillion, while Banamex's quarterly net profit came to MXN4.17 billion, 19% higher than in the year-ago quarter.

Mr. Arrigunaga said the Mexican unit of Citigroup has no intention of listing Banamex shares on the Mexican Stock Exchange, in spite of the strong demand shown for Banco Santander SA's (SAN) Mexican unit in its September dual US-Mexican equity offering.

Write to Amy Guthrie at amy.guthrie@dowjones.com

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