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Aug

20

Citi to Pursue Initial Public Offering of its Consumer, Small Business and Middle Market Banking Operations in Mexico as it Executes Strategy to Simplify Firm and Deliver Value to Shareholders

Citi to resume share buybacks this quarter. Business will retain the Banamex name and continue to serve as one of Mexico's leading banking partners for consumer, small and mid-sized business owners. Citi to retain and continue to grow market-leading institutional clients business in Mexico

Citi has announced that it will pursue an initial public offering (IPO) for its consumer, small business, and middle-market banking operations in Mexico. This decision comes after the planned separation of Citi's institutional business in Mexico. The Business, operating under the Banamex brand, will continue to be a prominent financial group in Mexico, providing a comprehensive range of financial services through its extensive distribution network. It serves millions of retail and commercial banking clients, as well as pension fund customers.

 

Citi has made substantial investments in Banamex, amounting to $2.5 billion, to enhance its digital and mobile banking capabilities and strengthen its technology infrastructure. In Mexico, Citi will maintain a locally-licensed banking business through its Institutional Clients Group (ICG) and Citi Private Bank, catering to private and public institutions, financial sector clients, investors, and ultra-high-net-worth individuals.

 

The separation of the businesses is expected to be finalized in the second half of 2024, with the IPO scheduled for 2025. Citi aims to prioritize the best outcome for its shareholders and plans to resume share buybacks. The Business will continue to be reported as part of Citi's ongoing operations until ownership falls below a 50% voting interest.

 

As part of its strategic refresh, Citi has been actively exiting consumer banking operations in various global markets. Sales agreements have been signed in nine markets, with completed sales in seven, including Australia, Bahrain, India, Malaysia, the Philippines, Thailand, and Vietnam. Citi is also progressing with its plans to wind down consumer businesses in China and Korea, as well as reducing its overall presence in Russia.


 

Retrieved from:

Citigroup. (2023, May 24). Citi Mexico operations update. Retrieved from https://www.citigroup.com/global/news/press-release/2023/citi-mexico-operations-update-24052023