Citi Announces IPO Of Consumer, Small Business And Middle Market Banking Operations In Mexico

(RTTNews) - Citigroup Inc.(C), a banking institution, Wednesday announced an initial public offering or IPO of its consumer, small business and middle-market banking operations in Mexico.

The separation of businesses is expected to be completed in the second half of 2024 and the IPO will take place in 2025.

The business will retain Banco Nacional de Mexico or the Banamex brand as it continues to offer a full range of financial services to consumers and small and mid-market business owners. It will also retain credit cards, retail banking, consumer loans, residential mortgage lending, insurance, annuities, pension assets management, deposits and a full suite of commercial banking products including Banamex's art collection and historical buildings.

The business will be reported as part of Citi's continuing operations until the ownership falls below 50 percent voting interest, after which the business will be deconsolidated.

The bank will continue to operate a locally-licensed banking business in Mexico through its Institutional Clients Group which provides banking and advisory services to private and public institutions, financial sector clients and investors, as well as through Citi Private Bank for ultra-high-net-worth individuals and families.

"This decision demonstrates our commitment to choose the best outcome for our shareholders and allows us to resume a modest level of share buybacks this quarter. Given the uncertainty regarding regulatory capital requirements, we will continue to assess buybacks on a quarter-by-quarter basis", said Mark Mason, CFO of Citi.

Citi has announced its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh. It has signed sale agreements in nine markets and closed sales in seven markets including Australia, Bahrain, India, Malaysia, the Philippines, Thailand and Vietnam.

In premarket activity, shares of CITI were trading at $45.19 down 1.57% or $0.72 on the New York Stock Exchange.