Citi separates Banamex from institutional banking business in Mexico
Citi has announced it has completed the separation of its Mexican retail banking unit Banamex from its institutional banking business in the country, with the two units now operating as two distinct entities – Grupo Financiero Banamex and Grupo Financiero Citi México.
Citi splits Banamex from institutional banking business in Mexico
Citi says the split, effective 1 December, comes as the banking group “actively” works on executing its “strategic plan to simplify the firm”, which includes the “proposed IPO of Grupo Financiero Banamex”.
Citi states that the timing of the IPO will depend on “regulatory approvals and market conditions to maximise shareholder value”, with Reuters reporting that the bank is considering a dual listing for the Banamex group in both Mexico City and New York.
Grupo Financiero Banamex includes Banco Nacional de México, offering wealth management, payroll services, payments, loans, mortgages, deposits, and commercial and retail banking products. With 1,300 branches and over 9,100 ATMs, Banamex will continue serving nearly 20 million customers.
Citi says it will retain a “significant presence” in Mexico through Grupo Financiero Citi México, continuing to serve institutional clients via its full-service bank, Banco Citi México, and offering brokerage services through Citi México Casa de Bolsa.
As part of its strategic refresh, the US-based banking group is on a mission to create a more simplified and connected bank that is “focused around our core strengths”, explains CEO Jane Fraser. As part of this strategy, the group previously announced plans to exit consumer banking across 14 markets in Asia, Europe, the Middle East, and Mexico.
Citi says it “has now closed sales in nine of those markets and has a sales process underway in Poland”.
“The previously announced wind-downs of Citi’s consumer businesses in China and Korea and overall presence in Russia are nearly complete,” it adds.
In September, the company finalised a deal to sell its global fiduciary and trust administration services entity, Citi Trust, for a reported $80 million.
