trending Market Intelligence /marketintelligence/en/news-insights/trending/Bngy_NVBCODkwdZwvBtlIw2 content esgSubNav
In This List

Itaú, Citi said to near deal; name change for Banco Nacional de México


Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A


Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion


Street Talk | Episode 97: Recessionary fears still keeping bank investors on the sidelines


Making sanctions effective: Key themes for banks

Itaú, Citi said to near deal; name change for Banco Nacional de México

* Citigroup Inc.said it will change the name of Mexican unit Banco Nacional de México SA to Citibanamex and will spendanother $1 billion on its operations in the country to upgrade and expand its technological offerings and retailnetwork. As part of the plan, Citi will add 100 so-called digital branches and another2,500 ATMs in the country.

* Negotiations between ItaúUnibanco Holding SA and Citigroup Inc. for Itaú to purchase Citi's retailbanking assets in Brazil are in the final stage and there is a high probabilitythat the two parties will sign a dealin the coming days, Valor Econômico reported,citing three sources with knowledge of the matter.


* Paulina Alejandra Del Moral Vela has as general director at in order to become labor secretary in Mexico state governor EruvielÁvila's cabinet, El Economista reported.

* Canal Bank SAaims to expand its loanportfolio by 20% to 25% as part of changes in the bank's overall business strategyfollowing its acquisition of BancoUniversal SA, Capital Financieroreported, citing CEO Roberto Brenes. The bank will focus specifically on its portfolioallocated to the agricultural sector.

* Banco de MéxicoGovernor Agustín Carstens said the central bank's next policy decision will dependon the outcome of U.S. presidential elections in November, Reuters reported. "Ifthere's a good result, we've moved ahead of the Fed, and possibly it won't be necessaryto raise them [rates]," Carstens said on local TV.

* Fitch Ratings assigned insurer financialstrength ratings of BBB- and national scale insurer financial strength ratings ofAA- to both Afianzadora InsurgentesSA de CV and AfianzadoraAserta SA de CV, with a stable outlook. Both companies' efficiency levelshave remained stableand competitive as of June, the agency said.

* Overall profitsfor commercial banks in Mexico increased 8.8% in the first eight months of 2016compared to the same period a year ago, ElFinanciero reported, citing data from banking and securities commission CNBV.

* The process of cancelling the registration of Mexican multiplepurpose financial entities, or Sofomes, that did not renew their registration bythe June 6, 2015, deadline is very complicatedand the deregistration of 1,231 Sofomes is still pending after more than a year,El Economista reported, citing financialconsumer protection agency Condusef.


* Bankruptcy requests in Brazil ticked up 16.7% in theaggregate period between January and September, while judicial recovery filingsjumped 70.2%, accordingto data from credit research firm Boa Vista SCPC.

* Brazil's major banks will need to submit new recovery plans by year-end with guidelines onhow they'll respond in stressed scenarios, ValorEconômico reported, citing Murilo Portugal, the head of banking federation Febraban."These plans will provide greater predictability, transparency and securityin the adoption of recovery strategies by banks to maintain the normal functioningof the financial system under stress situations," Portugal was quoted as saying.

* Brazilian banks reduced the granting of in both 2015 and the first halfof 2016 by 3.2% and 6.8%, respectively, driven by recession, slumping consumer spending,weaker confidence and falling investment, Fitch Ratings said. "We expect banksto continue this cautious approach to credit demand until they see clear signs thateconomic growth can be sustained," the rating agency said.

* Investors, pension funds and government agencies are accusingbig banks of neglectinginvestments that went bad in Brazil and are seeking around 9.3 billion reais incompensation from banks including BNYMellon Servicos Financeiros Dtvm SA, Banco Bradesco SA, BTGPactual Group, Banco CitibankSA, Deutsche Bank AGand Banco Santander (Brasil) SA,O Estado de S. Paulo reported. Investorsallege the banks were negligent in supervising funds or were co-responsible forlosses.

* Brazil's Itaúsa– Investimentos Itaú SA and Cambuhy Investimentos Ltda. plan to submita joint offer for a controllingstake in state-run oil firm Petrobras' fuel distribution unit in a deal thatcould be valued at $6 billion, Bloomberg News reported, citing "people withdirect knowledge of the matter." Private equity firms GP Investimentos SA andAdvent International Corp. are also thinking about making a bid, the sources said.

* Industrial output in Brazil declined3.8% in August from the previous month and fell 5.2% from a year earlier, BloombergNews reported, citing the national statistics agency.

* Brazilian President Michel Temer's administration submittedto Congress a proposalto limit government spending, and a special lower house committee is expected tovote on the measure in the coming days, Bloomberg News reported. The proposal wasrevised to increase minimum health expenditure in 2017 to 15% of net current revenuefrom 13.2%, as opposed to raising it gradually through 2020.

* The deadline for Brazilians to sign up for a government amnestyprogram for undeclared foreign assets could be extendedto Nov. 16 from Oct. 31, Reuters reported, citing Rodrigo Maia, the speaker of thelower house.

* A poll by Ibope showed that the number of Brazilians who believePresident Michel Temer's government is "great" or "good" increasedslightly to 14% from 13% in a previous poll, Reuters reported.The number of people who consider the government to be "bad" or "terrible"remained at 39%.

* S&P Global Ratings affirmed its B+/B global scale and brBBB-/brA-3national scale ratings on Banco PanSA and removedthem from CreditWatch with negative implications. The move follows a similar actionon parent Banco BTG Pactual SAin September.

* Italy's Generalihas partnered with Banco BMG SAto sell insurance for a 20-year period starting in January 2017, Valor Econômico reported. The dealis expected to provide BMG with a financial return of 1.5 billion reais in the overallperiod.

* Murilo Portugal, the president of Brazilian banking federationFebraban, said Brazil has started to emerge from its economic recession, but forsustained improvements, Congress must approvea proposal to limit increases in public spending, Valor Econômico reported.


* Banco dela Nación said it appointedLuis Fernando Gonzalez Prada Saponara as a director, effective Oct. 4.

* Banco De DesarrolloDe América Latina said it approveda $60 million loan for BancolombiaSA to be used for the development of environmental projects. The developmentbank has already disbursed the first $10 million, which Bancolombia will use forseven identified development initiatives.

* Peru's CorporaciónFinanciera de Desarrollo SA said it plans to auction 10-year bonds worth up to 50 million Peruvian soles,though the offering is expandable to 150 million soles. The bonds, which will beissued Oct. 6, will carry a fixed annual interest rate.

* Profitsfor Peruvian banks fell 3.2% year over year in the first eight months of 2016, withtwo banks posting losses for the period, ElComercio reported, citing banking and insurance regulator SBS. The sector'sdelinquency rate rose to 2.91% in August from 2.7% a year ago.


* Argentina has started marketingbenchmark-sized, euro-denominated bonds that mature in January 2022 and January2027, IFR reported. The 2022 bond is being offered with a yield in the 4.5% areaand the 2027 note in the 5.625% area.

* Banco Centralde la República Argentina maintainedits 35-day benchmark Lebac interest rate at 26.75%, saying that overall inflationexpectations for the last quarter of 2016 are above the central bank's officialtarget of 1.5% or less.  


* Moody's said its liquidity-stress index fellfor the sixth consecutive month in September, to 7.1% from 7.5% in August. The indexfalls when corporate liquidity appears to improve and rises when it appears to weaken.


* Asia-Pacific: SompoHoldings to acquire Endurance Specialty; India cuts policy rates

* Middle East & Africa: Attijariwafa to buy Barclays Egypt; South Africa's FSB backs new exchange

* North America: Regulatorsrelease updated versions of living wills by 8 large banks; CFPB issues new prepaidcard rules

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.

Paula Mejia contributedto this article.

The Daily Dose has an editorialdeadline of 8 a.m. São Paulo time, and scans news sources published in English,Portuguese and Spanish. Some external links may require a subscription.