Citi completes division of Mexican businesses into two segments By Investing.com

On Tuesday, Citi announced the completion of its plans to separate its banking business in Mexico from consumer, small business and middle market. The split creates two separate entities: Grupo Financiero Citi México, serving clients, and Grupo Financiero Banamex, serving the needs of consumer banking. The move is part of Citi’s broader strategy to streamline operations and focus on its core strengths.

Citi CEO Jane Fraser said the separation was an important part of the bank’s efforts to downsize and align with its long-term vision. He emphasized the company’s commitment to its clients in Mexico and its intention to prepare for the initial public offering (IPO) of Grupo Financiero Banamex. The timing of the IPO will depend on regulatory approvals and market conditions, in order to increase shareholder value.

Ernesto Torres Cantú, Director of Citi International, thanked the Mexican Financial Authorities and Citi teams for their support and efforts during the almost three years of separation. He highlighted two newly created positions to support Mexico’s growth.

Grupo Financiero Citi México, led by Julio Figueroa as Chairman of the Board of Directors and Alvaro Jaramillo as Citi’s Country Head and Banking Manager in Mexico, will support Citi’s global network to support nearly 2,000 clients with a wide range of financial products and services . The local team of approximately 3,000 employees will focus on banking, markets, operations, and financial management for institutional clients.

Grupo Financiero Banamex, led by Ignacio Deschamps as Chairman and Manuel Romo as CEO, will offer a full range of retail banking services. The organization will continue its 140-year history in Mexico, offering digital banking solutions, multiple branches and ATMs, and a comprehensive portfolio of banking products to nearly 20 million customers.

The announcement follows Citi’s ongoing process of divesting consumer banking in 14 markets across Asia, Europe, the Middle East, and Mexico, with sales already closed in nine markets and a sale underway in Poland. The destruction of Citi’s consumer businesses in China and Korea and its presence in Russia is nearing completion.

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