Citigroup Successfully Separates Corporate Operations from Consumer, Small, and Medium-Sized Business Activities in Mexico

Citi (C) announced today that it has successfully separated its corporate banking operations in Mexico from its consumer, small and medium-sized enterprise activities. Effective December 1, Citi will now operate in Mexico as two distinct financial groups: Grupo Financiero Citi México and Grupo Financiero Banamex. This separation represents a significant step in the execution of the company’s strategic plan to simplify its operations. As previously announced, Citi continues to actively work on the planned initial public offering of Grupo Financiero Banamex, which will depend on regulatory approvals and market conditions, and remains a priority for Citi in maximizing shareholder value.

Citi CEO Jane Fraser stated: "This separation marks a significant milestone in our simplification process and brings us closer to our long-term vision of being a more connected bank focused on our core strengths. We are proud to have carried out this process thoughtfully and with full transparency. Our commitment to our customers in Mexico is stronger than ever, and we will continue to connect Mexico and the world through our market-leading investor and corporate client platforms. We will now prepare for the Banamex IPO by focusing on optimizing value for our shareholders."

Citi International President Ernesto Torres Cantú said: "Citi has been operating in Mexico for nearly a century, and this country continues to be one of our most important corporate markets. Thanks to the extraordinary work, dedication, and professionalism demonstrated by the Banamex and Citi teams over the past three years, we now have two solid financial institutions with significant positions in their respective segments, and they will continue to support the country’s growth. We thank the Mexican Financial Authorities for their support during the separation process, and our colleagues who have worked tirelessly to achieve this milestone."

Grupo Financiero Citi México will maintain a significant presence in the country and will continue to serve Citi's corporate clients through a full-service bank via Banco Citi México and brokerage services via Citi México Casa de Bolsa. Citi will offer a portfolio of financial products and services through four business lines - Banking, Markets, Services, and Wealth - to financial institutions, governments, investors, multinational corporations, and national companies looking to internationalize. Supported by its unique global network and over 120 years of uninterrupted presence in Latin America, Citi's local team of approximately 3,000 employees will serve around 2,000 clients.

As announced in February, Julio Figueroa, head of Citi's Latin America Cluster and Banking, will assume the role of Chairman of the Board of Grupo Financiero Citi México and Banco Citi México, while Alvaro Jaramillo will serve as Citi's Country Officer and Banking Head for Mexico.

Grupo Financiero Banamex will include a full-service bank called Banco Nacional de México, which will offer a range of retail banking, wealth management services, consumer lending, mortgage loans, deposits, payroll services, payments, and a full array of commercial banking products. Additionally, Tarjetas Banamex, Afore Banamex, Seguros Banamex, and Pensiones Banamex will respectively offer credit cards, pension asset management, insurance, and annuity products. With a digital-first mindset, innovative online banking and mobile applications, and a vast network of approximately 1,300 branches and over 9,100 ATMs across the country, Banamex will continue to provide comprehensive financial services to approximately 20 million customers, sustaining its 140-year legacy in Mexico. Currently, over 39,000 employees support these operations, and Banamex's art collection and historic buildings will remain part of the Banamex financial group’s social and cultural associations (Fomentos).

Again, as announced in February, Ignacio Deschamps will take the role of Chairman of Grupo Financiero Banamex and Banco Nacional de México. Ernesto Torres Cantú will remain a board member for both the financial group and the bank. Manuel Romo will serve as the CEO for both Grupo Financiero Banamex and Banco Nacional de México.

Since announcing its intention to exit consumer banking in 14 markets in Asia, Europe, the Middle East, and Mexico as part of its strategic renewal plan, Citi has completed sales in nine of these markets, with the sale process in Poland still ongoing. The previously announced divestiture of Citi’s consumer businesses in China and Korea and its overall presence in Russia is nearly complete.