Citigroup Agrees to Sell 24% Banamex Stake, Moves Closer to IPO Plan

Citigroup Inc. C announced agreements with several investors for commitments to purchase an aggregate 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex). The deal represents another significant step in C’s ongoing divestiture of its Mexican consumer banking franchise as it prepares Banamex for a potential initial public offering (“IPO”).

After the close of all committed purchases, Citigroup will have sold 49% of Banamex's total shares. The company further does not expect to sell additional shares in 2026, giving the investor group time to drive value creation.

Details of C’s Banamex Stake Sale

Under the newly signed agreements, a group of institutional investors and family offices has committed to acquire, in aggregate, nearly 24% (around 499 million shares) of Banamex’s outstanding common stock at a fixed price of approximately MXN 43 billion (nearly $2.5 billion). At signing, the transaction implies a price-to-local GAAP book value of about 0.85x and a price-to-local GAAP tangible book value of approximately 1.01x, subject to customary purchase price adjustments.

The individual investor stakes are limited to a maximum of 4.9%. The transactions remain subject to customary closing conditions, including antitrust and other regulatory approvals in Mexico, and are expected to close in 2026.

The buyers include prominent global investors such as General Atlantic, Afore SURA (part of SURA Asset Management), Banco BTG Pactual, Chubb, funds managed by Blackstone, Liberty Strategic Capital and Qatar Investment Authority.

Ernesto Torres Cantú, head of International at Citigroup, stated that, “We are honored to have the backing of these buyers as we prepare for Banamex’s proposed initial public offering." Cantú further added, “Their investment is a further endorsement of Banamex’s long-term strategy, market leadership and growth prospects, and their commitment solidifies Banamex’s foundational position within Mexico’s banking system.”

Timeline of C's Mexico Consumer Business Exit

Citigroup’s divestiture of Banamex began with its January 2022 announcement to exit consumer, small business, and middle-market banking operations in Mexico, as part of a broader strategic refresh. The bank has retained and continues to invest in its Institutional Clients Group operations in the country.

In December 2024, Citigroup formally separated its institutional banking business from its consumer and middle-market operations, establishing two distinct entities, namely, Grupo Financiero Citi México and Grupo Financiero Banamex. This structural separation simplified operations and set the stage for Banamex’s potential entry into the public markets.

In December 2025, the company completed the sale of a 25% equity stake in Banamex to Mexican businessman Fernando Chico Pardo at a fixed price-to-book multiple, a deal first announced in September 2025. The recently announced 24% stake sale builds on these earlier steps, further advancing Citigroup’s plan to monetize its Mexican consumer business while preparing Banamex for a potential IPO.

C’s Broader Streamlining and Capital Reallocation Efforts

The Banamex divestiture is part of Citigroup’s multi-year transformation under CEO Jane Fraser, aimed at simplifying the organization, reducing structural complexity, and reallocating capital toward higher-return businesses.

In April 2021, the company announced plans to exit consumer banking across 14 markets in Asia and EMEA, and it has since exited nine markets. In February 2026, it completed the sale of its Russia-based unit, AO Citibank, to Renaissance Capital, marking its full exit from Russia and strengthening its Common Equity Tier 1 capital position. The previously announced wind-downs in China and Korea are substantially complete, while the sale of its Poland consumer banking business is expected to close by mid-2026, subject to regulatory approvals.

Beyond its geographic exits, Citigroup has been actively restructuring its operations to simplify management layers and boost efficiency. In January 2024, the company outlined plans to reduce its global workforce by roughly 20,000 employees by 2026, with over 10,000 positions already eliminated. These cost-saving initiatives, combined with ongoing consumer banking divestitures and automation programs, are projected to deliver $2–$2.5 billion in annualized savings by 2026. Management is also targeting a 60% efficiency ratio and another year of positive operating leverage in 2026.

These efforts are intended to free up capital that can be redirected toward Citigroup’s core institutional and wealth management businesses in key global hubs, including Singapore, Hong Kong, the UAE, and London, supporting the bank’s goal of achieving a 4–5% compound annual revenue growth rate through 2026.

C’s Price Performance & Zacks Rank

Shares of Citigroup have gained 14.7% over the past six months compared with the industry’s growth of 4.5%.

Currently, C carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Financial Firms

In November 2025, The Goldman Sachs Group, Inc. GS reached an agreement with ING Bank Slaski to divest its Polish asset management firm, TFI. The deal, targeted for completion in the first half of 2026 pending regulatory signoff, will end Goldman’s presence in the Polish retail investment market while cementing ING’s long-term ambitions in the region.

GS acquired control of what is now Goldman Sachs TFI through its 2022 takeover of NN Investment Partners. By selling its stake now, Goldman sheds its majority exposure in a mature but relatively small asset-management market — likely freeing up capital and management bandwidth for other priorities.

In September 2025, HSBC Holdings PLC HSBC agreed to sell its retail banking business in Sri Lanka to Nations Trust Bank PLC.

This move will not impact HSBC’s Corporate and Institutional Banking business in Sri Lanka, given its significance to its global corporate clients and global network. The company will maintain its support for corporate and institutional clients, fostering Sri Lanka’s economic growth and facilitating cross-border trade and investment between local businesses and global partners.

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