Citigroup plans to exit its Mexican retail banking operations, its largest branch network in the world. Citi however will continue its institutional businesses in Mexico. The exit could take place in the form of a sale or a public-market alternative, and will be subject to regulatory approval. “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”, said Citi’s CEO Jane Fraser, adding that Mexico is still a priority market for Citi. The move comes after she announced last year that Citi would exit 13 markets across Asia and Europe as part of a strategy to simplify the structure and focus on more-lucrative businesses. As per Bloomberg, the units included in the Mexican exit have ~$44bn in assets with $4bn in average tangible equity. Fraser further noted, “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 banking major is due to report its Q4 earnings on Friday.

Citi’s dollar bonds were stable – its 5.9% Perp was at 102.99, yielding 3.08%.

For the full story, click here

Show Buttons
Hide Buttons