Citi has agreed to sell a 25% stake in Banamex, the retail and small-business portion of the U.S. bank’s footprint south of the border, to Mexican billionaire Fernando Chico Pardo, the bank announced Wednesday.
The transaction, expected to close in the second half of 2026, carries an estimated value of $2.3 billion, the bank said.
Citi incurred a goodwill impairment charge of roughly $726 million, to be logged this quarter, as part of the deal.
Citi CEO Jane Fraser, in a statement Wednesday, called Chico Pardo’s investment a “resounding endorsement of Banamex's strength and potential.”
At the same time, Fraser confirmed Citi still aims to launch an initial public offering for Banamex – a spinoff that’s been in the works for years. Citi separated Banamex from its institutional banking operations in Mexico in December.
“Banamex has long been a cornerstone of Mexico’s banking system, and we are confident it will continue to be a driver of stability and growth well into the future,” Fraser said, adding that the IPO – long envisioned for this year – would “realize the full value of this iconic institution for our shareholders.”
Citi bought Banamex in 2001 for $12.5 billion. Wednesday’s transaction would value the organization at around $9.1 billion.
“We firmly believe that Banamex and its talented and experienced team will continue to be a fundamental pillar supporting Mexico, its companies and its families,” Chico Pardo said Wednesday. “For our family, this is more than a business decision, it is an expression of confidence in Mexico and an assertion of our commitment to its economic, social and cultural progress.”
Mexico is one of more than a dozen foreign retail markets from which Citi has sought to extricate itself since 2021.
But it hasn’t been an easy journey. Citi in 2023 reportedly came close to selling most of its Mexico retail operations to Grupo Mexico in a deal worth roughly $7 billion.
But Mexico’s then-president, Andres Manuel López Obrador, repeatedly weighed in on the deal, saying he would require job protections for workers and forbid the bank’s art collection from leaving the country.
Citi walked away.
Fraser reportedly met with López Obrador’s successor, Claudia Sheinbaum, in August. Sheinbaum didn’t want to see any foreign buyers, or further consolidation in Mexico’s banking sector, Bloomberg reported, citing people familiar with the matter.
Chico Pardo, for his part, appeared to allude to the art collection Wednesday, saying he is “profoundly committed to continuing and to renew the social and cultural programs that distinguish Banamex and give access to an invaluable artistic heritage to millions of Mexicans.”
Chico Pardo is the former chief executive of fellow billionaire Carlos Slim’s Grupo Financiero Inbursa and the founder of Mexican private-equity firm Promecap. He is also a major shareholder in Grupo Aeroportuario del Sureste, which holds the business rights for Cancún’s airport.
Once the Citi deal closes, Chico Pardo will become chair of Grupo Financiero Banamex, the U.S. bank said. Manuel Romo will remain CEO of Banamex, and Ignacio Deschamps will remain chair of Banco Nacional de México, according to Wednesday’s release.
Citi called the divestiture of Banamex “a strategic priority,” adding that “any decisions related to the timing and structure of the proposed Banamex [IPO] will continue to be guided by several factors, including market conditions and receipt of regulatory approvals.”
The deal would give Chico Prado a 25% stake in Mexico’s fourth-largest financial group, which counts roughly 1,300 branches, 13.6 million retail banking customers and 6,000 commercial banking clients.
Citi CFO Mark Mason has said the bank plans to put Banamex stakes of around 15% to 20% in public offerings, according to Bloomberg.
Analysts at RBC Capital Markets said Wednesday’s announcement “further demonstrates [Citi’s] commitment to shrinking to profitability, which should create shareholder value,” according to a note seen by the Financial Times.
Among its foreign retail presence, Citi last sold its Polish consumer business to VeloBank in May.
