Citibanamex Profit Falls 51% in 2020
The profits of Grupo Financiero Citibanamex registered a contraction of 51.3 percent during 2020, compared to what was reported in the same period last year, due to the effects of the covid-19 pandemic and the reserves made pending credit losses. According to the group’s income statement, the fall compared to 2019 was 15 billion pesos, thus obtaining a profit of 14.24 billion pesos.
Meanwhile, credit reserves totaled 10.5 billion pesos in anticipation of potential losses derived from the pandemic. “I do not remember a year in which the group had a drop of 51 percent, which implies a drop in demand and a relevant increase in preventive reserves for loss of credit. A year ago when the pandemic started there was a great deal of uncertainty when COVID-19 became a pandemic, ”explained Manuel Romo, CEO of Citibanamex. In a conference, he assured that it is the worst crisis with the slowest recovery, thus explaining that the group’s results were due to lower income from financial margin derived from lower rate and volume in the loan portfolio, lower income from associated commissions to the credit card business, as well as through intermediation due to market volatility due to the coronavirus