US banking major Citi has announced plans to close its consumer, small business and middle-market banking operations in Mexico.
The lender will continue to operate in Mexico through its locally licensed arm, Institutional Clients Group.
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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 will 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.”
Citi noted that Mexico will continue to be one of its top institutional markets outside of the US and it will keep investing in institutional banking operations, along with its private banking franchise.
Fraser added: “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.”
The divesture is part of Citi’s plans to focus on global wealth centres, payments, lending and a focused retail presence in the US.
The operations set to close reported nearly $3.5bn in revenue, $1.2bn in earnings before tax, $44bn in assets, and $4bn in average allocated tangible common equity (TCE) during the first three quarters of 2021.
Citi will decide the method and timing of the exit, which is subject to regulatory clearance from both the US and Mexico.
