(Bloomberg) -- Banco Santander SA expects to be among lenders exploring potential bids for Citigroup Inc.'s retail banking operations in Mexico, Chairman Ana Botin said in an interview.
“When the process begins, we expect to be part of that process,” Botin said in an interview Wednesday, confirming a Bloomberg report from last month.
While Santander is focused on organic growth, Mexico is a key market for the Spanish lender, she said in the interview on Bloomberg TV. Santander wouldn't pay for a purchase by issuing new shares as the bank's priority is buying back its stock, Botin told analysts on a conference call.
Read more: Santander Is Said Among Potential Suitors for Citi's Mexico Unit
Citigroup is planning to exit its consumer, small-business and middle-market banking operations in Mexico amid a broader revamp by Chief Executive Officer Jane Fraser. A deal there would make Santander -- which also has a large presence in Brazil and Chile -- a stronger challenger to Banco Bilbao Vizcaya Argentaria SA.
Santander on Wednesday pledged to increase profitability and shareholder payouts as rising interest rates in key markets from the Americas to Europe are set to boost revenue from lending. It also signaled it's done strengthening capital buffers after rebounding from steep losses two years ago at the onset of the pandemic.
Citigroup may seek a valuation of as much as $15 billion in a full sale, people familiar with the matter have said.
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