Citigroup Offloads Banamex Stake to Chico Pardo in $2.3B Exit Move

Citigroup Inc. has finalized the sale of a 25% stake in its Mexican retail banking unit, Grupo Financiero Banamex, to billionaire investor Fernando Chico Pardo according to Bloomberg. The transaction, valued at approximately 42 billion pesos ($2.3 billion), is a key step in the bank's broader strategy to exit several retail banking markets as reported by Nasdaq. Mexican financial authorities have approved the deal, with Chico Pardo immediately taking on the role of chairman of Banamex's board according to Bloomberg.

The deal marks a milestone for Citigroup, as it moves closer to a full divestiture and potential public listing of Banamex according to Finviz. Chico Pardo, a former CEO of Grupo Financiero Inbursa, has been in the final stages of regulatory review and is expected to bring fresh capital and strategic direction to the bank as reported by Seeking Alpha. Citigroup has been gradually scaling back its presence in lower-growth markets to focus on its wealth and institutional banking divisions.

Banamex, now operating independently of Citigroup, is seeking to re-enter corporate banking and secure a brokerage license to expand its market presence according to Bloomberg. CEO Manuel Romo stated that the bank aims to reclaim its former market dominance and invest in digital infrastructure to enhance customer experience according to Bloomberg. With Citigroup no longer directly managing Banamex, the bank has also seen a modest increase in its share of the Mexican lending market according to Bloomberg.

Strategic Realignment and Market Exit

Citigroup's decision to sell Banamex is part of a broader restructuring plan that includes exiting consumer banking in multiple markets. The bank has already completed exits in nine countries and secured regulatory approvals in others, including Russia, Poland, and China as reported by Nasdaq. These moves are intended to streamline operations and redirect capital to higher-growth markets such as Singapore, Hong Kong, and the UAE according to Finviz.

The planned IPO for Banamex remains subject to market conditions and further regulatory approvals according to Bloomberg. Citigroup previously indicated that the transaction would close in the second half of 2026, but the deal is now expected to be finalized sooner as reported by Seeking Alpha. The company has been vocal about its long-term financial goals, including achieving a 10–11% return on tangible common equity through these strategic shifts according to Nasdaq.

Market Reactions and Analyst Outlook

Following the news, Citigroup's stock rose more than 1% in premarket trading, bolstered by an upgrade from J.P. Morgan to "overweight" according to Investing.com. The upgrade reflects growing confidence in Citigroup's turnaround strategy under CEO Jane Fraser, who has focused on simplification and targeted investments in core areas according to Investing.com. Citigroup's shares have gained about 59% this year, outpacing many of its rivals according to Investing.com.

Banamex's leadership has also drawn attention for its ambitious growth plans. CEO Manuel Romo outlined a vision for the bank to re-emerge as a major player in corporate finance and capital markets, supported by recent technology investments according to Bloomberg. These developments signal a shift in focus from global retail banking to high-value financial services in Mexico.

Broader Industry Trends

Citigroup is not alone in its strategy to divest non-core retail banking units. Recently, Goldman Sachs and HSBC have also announced similar exits in select markets according to Finviz. These moves reflect a broader trend among global banks to streamline operations and invest in sectors with higher returns. For example, Goldman Sachs agreed to sell its Polish asset management firm to ING, while HSBC plans to divest its retail banking operations in Sri Lanka according to Finviz.

Analysts have highlighted the potential for increased industry consolidation in 2026, with favorable regulatory and economic conditions supporting large-scale transactions according to Investing.com. As banks continue to refine their strategies, the focus on wealth management and institutional services is expected to become even more pronounced.