Citigroup announces the end of its commercial banking activities in Mexico and puts Banamex up for sale

After more than a century of presence in MexicoThe US bank Citigroup announced on Tuesday its intention to end commercial banking operations through its subsidiary Banamex in a twist in its strategy, the entity announced in a statement.

“The decision to end the activities (in the sector) of the consumer, small businesses and the banking business of the middle market in Mexico is completely in line with the principles of updating our strategy ”, said the group’s president, Jane Fraser, who took office last March.

The bank’s turnover in Mexico In the sector from which it wants to withdraw, it rose to 3,500 million dollars in the first nine months of 2021, which represents 6% of the total income of the entity.

Mexico is one more piece of the new “strategy update” board that Fraser has undertaken, one of the few women who has reached the presidency of a large group such as Citi.

The US bank has also withdrawn from Asia and Europe to focus on a wealthy clientele globally, on credit cards and institutional businesses where its competitive advantages “are greater.”

However, the institution will continue to maintain its presence in Mexico in the investment sector and in institutional businesses through the Institutional Clients Group, he says.

This country is “a priority market for Citi, which will not change ”, assures the president.

“We hope that Mexico will be a great recipient of global investments and trade flows in the coming years”, added.

The country, he assures, has a “unique position” to support cross-border capital markets activity and trade flows within and outside the country for “our institutional clients” and “we will continue to make our investments in our institutional operations.”

The exit process is subject to various conditions and approvals, including relevant regulatory approval in both the United States and Mexico, the statement said.

Commercial banking operations in Mexico is the last stronghold of the entity in Latin America.

The bank refers to the report that it will publish on January 14 to offer more information on its departure from Mexico.

________________________________