Citi (C) today announced the successful separation of its institutional banking business in Mexico from its consumer, small and middle market businesses. With this separation complete, effective December 1, Citi will now operate two separate financial groups in Mexico: Grupo Financiero Citi México and Grupo Financiero Banamex. The separation into these financial groups marks a significant step in the execution of its strategic plan to simplify the firm. As previously announced, Citi continues to actively work on the proposed IPO of Grupo Financiero Banamex, the timing of which will be driven by regulatory approvals and market conditions to maximize shareholder value, which remains a priority for Citi.
Jane Fraser, Citi CEO, said: “This separation represents an important milestone in our simplification and brings us closer to our long-term vision of a more connected bank that is focused around our core strengths. We are proud to have executed this process thoughtfully and with full transparency. Our commitment to our clients in Mexico is as strong as 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, focused on optimizing value for our shareholders.”
Ernesto Torres Cantú, Head of Citi International, said: “Citi has operated in Mexico for almost a century, and this country remains one of our most important institutional markets. As a result of the extraordinary work, dedication and professionalism of the Banamex and Citi teams over nearly three years, today we have two solid financial institutions with prominent positions in their respective segments that will continue to boost the country’s growth. We thank the Mexican Financial Authorities for their support during the separation process, as well as our colleagues who worked tirelessly to accomplish this milestone.”
Grupo Financiero Citi México will maintain a significant presence in the country and continue to serve Citi’s institutional clients in Mexico through a full-service bank, Banco Citi México, and brokerage services through Citi México Casa de Bolsa. Via its four business lines—Banking, Markets, Services and Wealth—Citi will offer a portfolio of financial products and services to financial institutions, governments, investors, multinationals, and national companies seeking to internationalize. Supported by its unmatched global network and more than 120 years of uninterrupted presence in Latin America, Citi’s local team of approximately 3,000 employees will serve around 2,000 clients.
As previously announced in February, Julio Figueroa, Citi Latin America Cluster and Banking Head, will Chair the Boards of Directors of Grupo Financiero Citi México and Banco Citi México, with Alvaro Jaramillo serving as Citi Country Officer and Banking Head for Mexico.
Grupo Financiero Banamex will include a full-service bank, Banco Nacional de México, offering retail banking, including wealth management services, consumer loans, residential mortgage lending, deposits, payroll services, payments and a full suite of commercial banking products, as well as Tarjetas Banamex, Afore Banamex, Seguros Banamex and Pensiones Banamex, offering credit cards, retirement asset management, insurance and annuities, respectively. With its digital-first mentality, innovative online banking and mobile apps and an extensive network of approximately 1,300 branches and more than 9,100 ATMs across the country, Banamex will continue to offer a full range of financial services to nearly 20 million clients, furthering its 140-year legacy in Mexico. Over 39,000 employees currently supporting these businesses, as well as Banamex’s art collection and historical buildings, and the social and cultural associations (Fomentos), will continue to be part of the Banamex financial group.
Also announced in February, Ignacio Deschamps will serve as Chair of the Boards of Directors of Grupo Financiero Banamex and Banco Nacional de México. Ernesto Torres Cantú will remain a Board member of both the financial group and the bank. Manuel Romo will serve as CEO of Grupo Financiero Banamex and Banco Nacional de México.
Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh, Citi has now closed sales in nine of those markets and has a sales process underway in Poland. The previously announced wind-downs of Citi’s consumer businesses in China and Korea and overall presence in Russia are nearly complete.