(Reuters) - Citigroup (NYSE:C) has completed the separation of Banamex from its institutional banking business in Mexico as it prepares to list the retail bank, the Wall Street giant said on Monday.
The move to split Grupo Financiero Citi México from Grupo Financiero Banamex is part of Citi's sweeping overhaul under CEO Jane Fraser aimed at simplifying its sprawling structure as it looks to improve the bank's performance.
The New York-based bank is continuing to work on the proposed initial public offering of Banamex, the timing of which will depend on regulatory approvals and market conditions, Citi said.
"This separation represents an important milestone in our simplification," Fraser said. "We will now prepare for the Banamex IPO."
Citi has weighed a dual stock listing for the Banamex unit, possibly in Mexico City and New York, Reuters has reported.
The bank had previously said it planned to list its Banamex unit, which caters to nearly 20 million clients and has a network of 1,300 branches in Mexico, in 2025.
Citi was close to a $7 billion deal to sell Banamex to Mexican billionaire German Larrea's conglomerate Grupo Mexico last year.
But tensions between the conglomerate and Mexican President Andres Manuel Lopez Obrador led to the two sides abandoning the deal, with Citi deciding to pursue an IPO instead.
Citi México will maintain a "significant" presence in the country and continue to serve the bank's institutional clients with a team of roughly 3,000 employees.
The bank has closed its consumer banking divisions in nine markets since announcing its intention to exit the business across 14 markets in Asia, Europe, the Middle East, and Mexico, it said. Citi currently has a sale process underway in Poland.
Citi said its previously announced wind-downs of consumer businesses in China and Korea and overall presence in Russia are also nearly complete.