Citigroup continues planning the sale of Citibanamex through the stock market but does not rule out direct operation

Citigroup keeps its options open in the process of separating Banamex, including returning to the idea of ​​a direct sale, but continues to advance in the divestiture process through a Initial Public Offering (IPO)said the CEO of Citigroup, Jane Fraser, during the US financial group’s results presentation conference.

“I never say never, but we are very focused on the IPO, we believe that it is the most appropriate decision for all actions, we are in it and in coordination with our partners in Mexico and with the management of Banamex to guide the process,” he stated. .

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Citigroup published its financial results for the first quarter of 2024, in which it reported a decrease in its net profits, highlighting that its operations in Mexico contributed positively to the overall increase in revenue, but also faced challenges in terms of costs and expenses. additional in the framework of the separation of Banamex.

According to the report provided by Citigroup, its operations in Mexico, specifically in the All Others (Managed Base) division, experienced an increase in revenue during the first quarter of 2024, attributed to a growth in operating volumes in the country and the appreciation of the Mexican peso . However, despite this increase in revenue, the division also faced higher financing costs and additional expenses.

According to the report, the operating costs of disposals of said division went from 106 million in the fourth quarter of 2023 to 110 million dollars in the first quarter of 2024, an increase of 3.7%.

Although no specific details are provided on the individual segments of the operations of Citigroup in Mexico, in its All Others (Managed Basis) division, Citigroup reported revenue of $2.4 billion. Higher financing costs and restructuring charges impacted the division’s expenses, resulting in a net loss of $457 million.

Once the separation of the two entities is completed in the second half of 2024, Citi México will be left with only 2,000 clients; while the National Bank of Mexico (Banamex) will bring together 22 million.