Citigroup Mexico Unit Banamex 2Q Net Profit Slides 15% On Year

Date : 07/28/2011 @ 2:10PM
Source : Dow Jones News
Stock : Citigroup, Inc. (C)
Quote : 66.09  -0.49 (-0.74%) @ 11:21AM

Citigroup Mexico Unit Banamex 2Q Net Profit Slides 15% On Year

Citigroup, Inc. (NYSE:C)
Historical Stock Chart

5 Years : From Aug 2012 to Aug 2017

Click Here for more Citigroup, Inc. Charts.

Citigroup Inc.'s (C) Mexican unit Banamex said its second-quarter net profit fell 15% on the year to MXN4.49 billion pesos ($384 million) as sharply lower gains from positions in financial market securities cut into its bottom line.

Still, the Mexican bank's net profit represents more than 11% of the $3.34 billion in net profit that Citigroup reported for the same period.

Banamex approved payment last year of around $1.4 billion in dividends to Citigroup, its second dividend disbursement since the U.S. banking giant bought Banamex in 2001.

Executives said Thursday that Banamex paid MXN8 billion of those dividends during the first six months of the year, which brought the Mexican bank's capitalization level down to around 18% from about 20%.

The Mexican unit aims to distribute the remaining MXN8 billion at a pace that allows it to sustain its current capitalization ratio.

The bank reported return on equity of 11.3% for the April-June period versus 6.4% in the first quarter and 12.7% in the second quarter of 2010.

The main drag on the latest quarter's results came from market activity. Banamex booked net profit of MXN414 million from trading in the second quarter versus MXN2.87 billion in the year-ago period and a MXN1.40 billion trading loss in the first quarter.

Javier Arrigunaga, head of the financial group, attributed Banamex's year-on-year decrease in trading gains to market volatility.

"We have a bigger market position than some other banks," he said.

Banamex, Mexico's second-biggest bank by assets and deposits, said growth in deposits and loans during the second quarter more than compensated for the impact of lower commissions and interest rates.

The bank said its credit portfolio stood at MXN346 billion as of the end of June, up from MXN332 billion at the end of March and MXN340 billion a year earlier.

Banamex said it experienced double-digit credit growth in areas such as personal loans and mortgages, while corporate financing slid 7% on the year as clients liquidated short-term debt.

The bank said its nonperforming loan rate stood at 1.7%, flat on the year but up from 1.2% in the first quarter.

Deposits rose 15% to MXN459 billion.

-By Amy Guthrie, Dow Jones Newswires; (5255) 5980-5177; amy.guthrie@dowjones.com

Latest C Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.