Citi to Exit Consumer, Small Business and Middle Market Banking Operations in Mexico
NEW YORK--(BUSINESS WIRE)--Jan 11, 2022--
Citi today announced that it intends to exit the consumer, small business and middle market banking operations of Citibanamex as part of its strategic refresh. Citi will continue to operate a locally-licensed banking business in Mexico through its global Institutional Clients Group. Citi has operated in Mexico for more than a century and the country will remain among Citi’s top institutional markets outside of the U.S. Citi will continue to invest in and grow those institutional banking operations, along with its Private Banking franchise.
Citi CEO Jane Fraser said, “The decision to exit the consumer, small business and middle market banking businesses in Mexico is fully aligned with the principles of our strategy refresh – we’ll be able to direct our resources to opportunities aligned with our core strengths and competitive advantages, focus on businesses that benefit from connectivity to our global network, and we will further simplify our bank.”
Fraser continued, “Mexico is a priority market for Citi – that will not change. We expect Mexico to be a major recipient of global investment and trade flows in the years ahead, and we are confident about the country’s trajectory. Citi is uniquely positioned to support cross-border capital markets activity and trade flows in and out of Mexico for our institutional clients and we will continue to make material investments in our institutional operations and market-leading hub there.”
Citi’s planned divestitures of its consumer businesses across Mexico, Asia and Europe are aligned with the repositioning of its consumer operations to focus on wealth centers globally as well as payments and lending and a targeted retail presence in the U.S.
Banco Nacional de México is a leading bank in Mexico with an iconic brand and rich history. Citi has made meaningful investments in this business over the course of the last two decades, greatly enhancing its digital and mobile banking capabilities, strengthening its technology infrastructure, modernizing its branch and ATM network, deepening relationships with key customer segments and advancing its financial inclusion efforts.
“The strategy refresh Citi has undertaken will result in a stronger, more focused bank,” said Mark Mason, Citi’s Chief Financial Officer. “We will execute a targeted consumer strategy, double down in wealth, and focus on our higher-returning institutional businesses where we have competitive advantages. Our emphasis is on opportunities where our global network uniquely positions us to support clients who are growing and facing an ever-changing set of complex dynamics around the world.”
The businesses in the intended exit include the Mexico consumer and small business banking operations, reported as part of Citi’s Global Consumer Banking segment , as well as the Mexico middle market banking business, reported in Citi’s Institutional Clients Group segment . The Mexico consumer and small business banking operations included in the intended exit represent the entirety of the Latin America Global Consumer Banking unit. In the first three quarters of 2021, the businesses Citi intends to exit together accounted for approximately $3.5 billion in revenue, $1.2 billion in earnings before tax, $44 billion in assets, and $4 billion in average allocated TCE.
Additional information about the operations Citi intends to exit in Mexico will be included in the 2021 fourth quarter earnings report on January 14, 2022. A link to Citi’s Current Report on Form 8-K filed today regarding the exit can be found here.
The method and timing of Citi’s exit from its consumer, small business and middle market banking operations in Mexico, which could include a sale or a public market alternative, will be determined by Citi and will be aligned with its objectives of maximizing shareholder value and strengthening both the businesses that Citi will exit and those it will retain. The exit process is subject to various conditions and approvals, including applicable regulatory approvals in both the U.S. and Mexico.
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors. These factors include, among others, consummation of the intended exit, such as satisfying various conditions and approvals, macroeconomic challenges and uncertainties and local banking conditions; the incurrence of unexpected charges or expenses; the impact of the accounting for currency translation adjustments related to the affected businesses; and the precautionary statements included in this press release. These factors also consist of those contained in Citi’s filings with the SEC, including without limitation the “Risk Factors” section of Citi’s 2020 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi.
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KEYWORD: MEXICO UNITED STATES CENTRAL AMERICA NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: SMALL BUSINESS BANKING PROFESSIONAL SERVICES FINANCE
SOURCE: Citigroup Inc.
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PUB: 01/11/2022 04:11 PM/DISC: 01/11/2022 04:12 PM