The American Citigroup, announced on Tuesday that it will leave its consumer banking businesses, as well as business in Mexico, to focus on its group of institutional clients.
“Citi announced today that it intends to exit Citibanamex’s consumer and corporate banking operations as part of its strategic renewal,” it explained in a statement dated New York, the bank’s headquarters.
There, he explained that Citi will continue to operate its Institutional Clients (ICG) business with a local banking license.
He recalled that it has been operating in Mexico for more than a century, and that the country will remain one of the largest institutional markets in Citi outside the United States.
“Citi will continue to invest and promote the growth of these operations in Mexico, along with its Citi Private Bank franchise,” the institution stated.
Jane Fraser, executive director of Citistated: “the decision to exit the consumer banking and corporate banking businesses in Mexico is fully aligned with the principles of our new strategic vision, it will allow us to allocate resources to opportunities aligned with Citi’s main strengths, as well as our competitive advantages, and we can focus on businesses that benefit from connecting with our global network. At the same time, it will allow us to further simplify our bank ”.
He added: “Mexico is a priority market for Citi, that is not going to change. We anticipate that Mexico will be a very important destination for global investment and trade flows in the following years and we are confident in the country’s trajectory ”.
In this sense, he pointed out that Citi is uniquely positioned to support the activities of its institutional clients in the international capital markets, as well as to support trade flows to and from Mexico.
“We will continue to make significant investments in our institutional business in Mexico to remain leaders in that market,” he said.
Citi explained that the operations of consumer banking and small businesses Of those that would come out in Mexico, they represent the entire unit reported under Global Consumer Banking in Latin America.
In the first three quarters of 2021, all of the businesses of which Citi would be dating in Mexico represented approximately $ 3.5 billion in revenue, $ 1.2 billion in earnings before taxes, $ 44 billion in assets, and $ 4 billion in assigned average tangible capital.
The bank added that the manner and times in which Citi will carry out the exit of consumer banking and corporate banking operations in Mexico, which may include a sale or a stock market operation, will be determined by Citi, and will be aligned with the objective of maximizing value for its shareholders and strengthening both the businesses that you will be exiting as well as those that you will maintain.
The exit process will be subject to various conditions and approvals, including regulatory approvals that are applicable in both the United States and Mexico.
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Reference-www.eleconomista.com.mx