On Monday, Citi announced the completion of its strategic plan to separate its institutional banking business in Mexico from its consumer, small and middle market businesses. The division results in the creation of two distinct entities: Grupo Financiero Citi México, serving institutional clients, and Grupo Financiero Banamex, catering to consumer banking needs. This move is part of Citi's broader strategy to streamline operations and focus on its core strengths.
Citi CEO Jane Fraser stated that the separation is a significant milestone in the bank's effort to simplify and align with its long-term vision. She 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, aiming to maximize shareholder value.
Ernesto Torres Cantú, Head of Citi International, expressed gratitude to the Mexican Financial Authorities and Citi teams for their support and effort throughout the nearly three-year separation process. He highlighted the two newly formed financial institutions' roles in contributing to Mexico's growth.
Grupo Financiero Citi México, led by Julio Figueroa as Chair of the Boards of Directors and Alvaro Jaramillo as Citi Country Officer and Banking Head for Mexico, will leverage Citi’s global network to serve about 2,000 clients with a comprehensive range of financial products and services. The local team of approximately 3,000 employees will focus on banking, markets, services, and wealth management for institutional clients.
Grupo Financiero Banamex, under the leadership of Ignacio Deschamps as Chair and Manuel Romo as CEO, will provide a full spectrum of retail banking services. The entity will continue its 140-year legacy in Mexico, offering digital banking solutions, an extensive network of branches and ATMs, and a suite of commercial banking products to nearly 20 million clients.
The announcement follows Citi's ongoing strategy to exit consumer banking in 14 markets across Asia, Europe, the Middle East, and Mexico, with sales already closed in nine markets and a sales process underway in Poland. The wind-downs of Citi’s consumer businesses in China and Korea and its overall presence in Russia are nearing completion.
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