Citi Splits Its Operations in Mexico into Two Separate Entities
On Tuesday, Citi announced that it has completed its strategic plan to separate its corporate banking operations in Mexico from its services aimed at consumers, small, and medium-sized enterprises. This split has resulted in the creation of two separate entities: Grupo Financiero Citi México, which serves corporate clients, and Grupo Financiero Banamex, which addresses individual banking needs. This move is part of Citi's strategy to streamline its operations and focus on its core strengths.
Citi's CEO Jane Fraser stated that this separation marks a significant milestone in the bank's efforts to align with its simplification and long-term vision. Fraser emphasized the company's commitment to its customers in Mexico and its intention to prepare Grupo Financiero Banamex for an initial public offering (IPO). The timing of the IPO will depend on regulatory approvals and market conditions, aiming to maximize shareholder value.
Ernesto Torres Cantú, Citi's International President, expressed gratitude to the Mexican financial authorities and Citi teams for their support and efforts throughout the nearly three-year separation process. He highlighted the roles that the newly formed financial institutions will play in contributing to Mexico's growth.
Led by Chairman Julio Figueroa and Citi Country Officer and Mexico Banking President Alvaro Jaramillo, Grupo Financiero Citi México will leverage Citi's global network to offer a comprehensive range of financial products and services to approximately 2,000 clients. The local team, consisting of around 3,000 employees, will focus on banking, markets, services, and asset management for corporate clients.
Grupo Financiero Banamex, led by Chairman Ignacio Deschamps and CEO Manuel Romo, will offer full-scale individual banking services. The institution will continue its 140-year legacy in Mexico, providing digital banking solutions to approximately 20 million customers, a wide branch and ATM network, and a range of commercial banking products.
This announcement continues Citi's strategy of exiting individual banking in 14 markets across Asia, Europe, the Middle East, and Mexico. Sales have already been completed in nine markets, while the sale process is ongoing in Poland. The divestment of Citi's individual banking operations in China and Korea, along with its overall presence in Russia, is nearing completion.