The move to separate Groupe Financiero Citi Mexico from Groupe Financiero Banamex is part of a fundamental overhaul under Citi CEO Jane Fraser to improve the bank's performance. The aim is to simplify vast organizations.
The New York-based bank remains committed to plans for an initial public offering for Banamex, the timing of which is subject to regulatory approvals and market conditions, Citi said.
“This separation represents an important milestone in our simplification,” Fraser said. “We will now proceed with preparations for Banamex's IPO.”
The bank previously said it planned to list its Banamex unit, which serves about 20 million customers and has a network of 1,300 branches in Mexico, in 2025.
However, tensions between the conglomerate and Mexican President Andres Manuel López Obrador led both sides to abandon the deal, with Citi deciding to pursue an IPO instead.
Citi Mexico will maintain a “significant” presence in the country and continue to serve the bank's institutional customers with a team of approximately 3,000 employees.
The bank said it had closed its consumer banking division in nine markets after announcing its intention to exit operations in 14 markets across Asia, Europe, the Middle East and Mexico. Citi is currently in the process of selling in Poland.
Citi said it has also largely completed its previously announced wind down of its consumer businesses in China and South Korea, as well as its overall presence in Russia.
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Reporting by Arasu Kannagi Basil in Bengaluru and Tatiana Bautzer in New York. Editing: Anil D'Silva
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