Citibank to Acquire Confia, S.A.

NEW YORK--(BUSINESS WIRE)--Aug. 27, 1997--Citibank said today that it has reached agreement to acquire Confia, S.A., a consumer and corporate bank based in Monterrey, Mexico.

The acquisition is in keeping with Citibank's Business Directions strategy to expand its consumer and corporate-banking presence in emerging markets worldwide.

Julio A. de Quesada, Country Corporate Officer for Citibank in Mexico, said: "The addition of Confia will allow Citibank in Mexico to offer expanded quality services to a greater number of consumer and corporate customers in Mexico, and on a national scale. It gives Citibank the important opportunity to grow as a local bank in Mexico, a country with tremendous potential, along with its customers and with the country."

Citibank, which has operated in Mexico since 1929, has seven branches, in Mexico City, Monterrey and Guadalajara and an estimated 1-2% share of Mexico's banking market.

Confia has an estimated 4% market share in Mexico. It has about 200 full-service branches, with a concentration in urban Mexico City, Monterrey and Guadalajara.

The purchase price will be $45 million. Over time Citibank could invest as much as $200 million in Confia to capitalize and build the franchise, depending on regulatory-capital and business requirements. The assets and liabilities of Confia will be restated to current fair value prior to the acquisition.

The acquisition, which is expected to be completed by the end of 1997, is subject to due diligence and regulatory approvals.

CONTACT: Citibank

Media:

Richard J. Howe, 212/559-9425

or

Investor:

Frederick A. Roesch, 212/559-2715