According to a Wall Street Journal article, Citigroup (C, Financial) is almost spinning off Banamex, its Mexican consumer banking division, in line with CEO Jane Fraser's restructure plan.
A crucial step before listing the unit on stock exchanges in Mexico and the United States, the bank is about to conclude the separation of Banamex's underlying systems from its other activities in Mexico next week. Citigroup intends to progressively lower its ownership over the public market; the first public offering (IPO) is set for late 2025 or beyond.
When asked by Reuters, Citigroup turned down to comment on the claim. The intended spinoff reflects Fraser's larger focus on its core institutional customer business and more general approach to simplify bank operations. Prominent in Mexico's financial scene, Banamex has been a major actor; the divestment signifies a dramatic change in Citigroup's profile in the nation.
The action fits Citigroup's worldwide plan to leave retail banking activities in some markets in order to improve profitability and devote funds to sectors with more future development.
