Grupo Ficohsa acquires Banco Citibank de Nicaragua and Cititarjetas de Nicaragua 

• The acquisition encompasses all of Citi’s business in Nicaragua: commercial loans, personal loans, deposits and credit cards.
• The transaction is pending authorization from regulatory bodies. During the process, Citi will continue its operations as it has to date.
• This acquisition follows the successful acquisition and integration of Citi’s consumer banking business in Honduras.

Grupo Financiero Ficohsa (GFF) has agreed to acquire 100% of the shares of Banco Citibank de Nicaragua, S.A. and Cititarjetas deNicaragua, S.A. The acquisition is pending approval by the Superintendency of Banks and Other Financial Institutions of Nicaragua(SIBOIF) and the Superintendency of Banks in Panama (SBP). Terms of the deal were not revealed.

Citi’s operations in Nicaragua are comprised of US$ 255 million in total assets, a loan portfolio of US$ 171 million, US$ 197 million in deposits and net worth of US$ 46 million, according to the group’s December 31, 2014 financial statements. Grupo Financiero Ficohsa currently encompasses the largest bank and insurance business in Honduras, as well as banks in Guatemala and Panama, and financial services in the United States. The group is headquartered in Panama.

“This acquisition is another important step in our expansion strategy, which further strengthens our position as one of Central America’s top 10 financial groups.  It also allows us to enter a country with great potential for growth, with a robust and well-positioned operation,” said Camilo Atala, president of Grupo Financiero Ficohsa. “Additionally, we are well acquainted with the process, after the successful integration of Citi’s consumer banking business in Honduras, which was conducted smoothly for both clients and employees.”

Citi’s operations in Nicaragua include commercial loans, personal loans, deposits and credit cards. With 17 points of service, 11 ATMs, and more than 600 employees, Citi is the second largest consumer bank in the country, in terms of market share.

Alvaro Jaramillo, Citi’s Central America Cluster Head, said: “We are pleased to announce this deal with Grupo Financiero Fichosa. Citi Nicaragua’s operation is of excellent quality, is managed by a talented group of people and is clearly recognized by our clients for its innovative products and the benefits they provide.  We are certain that our clients and employees will benefit from Ficohsa’s quality service and growth plans, not only for Nicaragua, but for the Central American region.”

Grupo Ficohsa sees its regionalization process as an opportunity to contribute to the expansion of Central America’s small and medium-sized enterprises (SMEs) outside of their borders. “Through our regional expansion we have helped bridge the gap for companies, particularly SMEs –the driving force for economic development in our countries– so they may have a trusted ally in the countries where Ficohsa operates, allowing them to take advantage of the growth and commercialization opportunities available, and gain access to a larger market,” said Atala.

Nicaragua has a stable macroeconomic outlook, with the second highest forecasted economic growth rate in Central America in 2015, after Panama. “We have great expectations to participate in the competitive Nicaraguan market and contribute to the country’s productive sector. We are committed to investing in initiatives that promote social development,” said Atala.

The acquisition of Citi assets in Nicaragua is Ficohsa’s second Citi acquisition in Central America. In June 2014, the group acquired 100% of Banco Citibank and Cititarjetas in Honduras. Ficohsa is not participating in the acquisition process for any other Citi operations in the region.

During the regulatory approval process, Banco Citibank and Cititarjetas in Nicaragua will continue operations as usual. Citi’s processes, products and services, as well as its clients’ benefits and obligations will not be affected.

“Citi has a strong team in Nicaragua, and we are pleased to welcome its more than 600 professionals. We are certain that, with their support, we will continue delivering excellent service to customers in the country,” said Atala.

Grupo Financiero Ficohsa, with a 20-year track record in the Honduran market, via Banco Ficohsa and Seguros Ficohsa, and soon with a pension fund, has also entered Guatemala and Panama successfully, with an innovative model focused on the Central American region. Throughout its history, it has proven to be a solid financial institution, with a broad portfolio of quality products and services.

Grupo Financiero Ficohsa after regulatory approval of the transaction:
(Using figures in US dollars as of December 31, 2014).

Source: PRnewswire – Grupo Ficohsa acquires Banco Citibank de Nicaragua and Cititarjetas de Nicaragua

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