After Nearly 3 Years, Citi Completes Banamex Separation; Customers Can Remain “Calm,” Says Citigroup
On December 2, 2024, the U.S.-based financial services corporation Citigroup announced the successful separation of its institutional banking operations in Mexico, alongside its consumer and commercial banking segments—an initiative first set in motion in early 2021.
According to Citigroup’s statement, effective December 1, the restructuring established two independent financial entities in Mexico: Grupo Financiero Citi México and Grupo Financiero Banamex. This milestone marks significant progress in Citigroup’s strategic simplification efforts.
“As previously announced, Citi is actively working on the initial public offering proposal for Grupo Financiero Banamex, with the timeline dependent on regulatory approvals and market conditions to maximize shareholder value, which remains a priority for Citi,” highlighted the bank in its statement.
Jane Fraser, Citigroup’s CEO, emphasized the achievement, noting their pride in conducting the process transparently while underlining a reinforced commitment to their Mexican clientele: “Our commitment to our customers in Mexico is stronger than ever.”
As Citigroup prepares for the stock market debut of Banamex, it stays focused on optimizing shareholder value. Ernesto Torres Cantú, Citigroup International’s Director, acknowledged the near-century-long operation of the bank in Mexico, affirming the country’s continued status as a core institutional market.
Citi reassured it will maintain a significant presence in Mexico through Citi Mexico and Citi México Casa de Bolsa, serving around 2,000 clients with its workforce of 3,000 employees. Julio Figueroa will chair the boards of Grupo Financiero Citi México and Banco Citi México, while Álvaro Jaramillo serves as CEO.
Grupo Financiero Banamex will encompass Banco Nacional de México, offering retail banking services such as wealth management, consumer loans, and a full suite of business banking products. Despite the separation, Banamex clients can rest assured their accounts and services remain unchanged, with no alterations to account numbers, balances, or benefits like loyalty points. The bank also highlighted the importance of vigilance against possible fraud attempts post-separation.
The extensive network of branches and ATMs, alongside digital banking applications such as Citibanamex Móvil, assures continued service. For any inquiries, customers may contact the Telephone Assistance Center at 55 12 26 26 39.
“Today marks a historic day as Citi announced the official separation of Citi Mexico and Banamex. In this new phase, we will focus on accelerating our digital agenda and penetrating new markets,” stated Manuel Romo, CEO of Grupo Financiero Banamex.
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**Additional Context: Future Prospects for Banamex IPO and Market Impact**
The separation of Banamex from Citigroup represents a pivotal transition for the Mexican banking landscape. Industry experts speculate that Banamex’s initial public offering (IPO) could ignite considerable interest from both domestic and international investors, contingent upon favorable regulatory conditions and market dynamics.
Analysts see the IPO as a strategic move to unlock Banamex’s intrinsic value, offering investors exposure to the burgeoning Mexican financial sector. Given Banamex’s extensive history and robust infrastructure, it stands poised to leverage its brand strength and further engage with Mexico’s financial ecosystem.
As Citigroup recalibrates its focus on core competencies, the seamless continuation of services and customer assurances underscore the smooth transitional management and enduring confidence in Banamex’s operational stability and growth potential.
These developments could ripple through Mexico’s banking sector, possibly prompting other financial institutions to reassess their strategies and foster competitive dynamics that benefit consumers through innovation and improved service offerings.