Citibanamex has begun to design the division through which two new financial institutions will be created: Citi Bank México and Banamex. The reconfiguration, a product of the expected divestment of the American giant, Citi, involves a separation of staff, offices and clients. The sale process of Banamex has been complex and long, going through a catwalk of bidders interested in the fourth bank by assets in the country last year, which in the end did not end up landing on any firm option and therefore will be launched in a Initial Public Offering (IPO) on the Mexican Stock Exchange in 2025. Meanwhile, behind closed doors, the corporation has already begun to outline the separation of these two entities, which will take place in the second tranche of this year. Last February, the firm announced that once the business separation is completed, the management of Citi Bank México will be headed by Álvaro Jaramillo Escallón —with 30 years of experience within Citi—, while Banamex will be under the reins of Manuel Romo, current director of Citibanamex.
The main difference between Citi Bank México and Banamex lies in their client portfolios. Citigroup’s projection is to strengthen its global network, so Citi Bank Mexico will be in charge of offering its services to large institutional clients such as companies, investors and other businesses that operate globally. “We will continue to provide the same service to Citibanamex’s 23 million current clients; Only 3,000 corporations will leave to be served by Citi Bank México. It is important to emphasize that nothing changes for customers. Citi México will provide attention to multinational companies, corporations and institutions with international operations, with issuance services in the debt and capital markets, purchase and sale of securities and currencies; treasury, international payments and transfers, foreign trade financing and custody of securities, as well as wealth and private banking services, among others,” the corporate states in writing.
For its part, Banamex will serve all consumer banking clients in its different lines of business: transactional, savings and investment accounts, investment funds, as well as credit cards, personal and payroll loans, mortgage loans and loans. business, through its network of branches, BancaNet and Citibanamex Móvil. In addition, it has one of the largest Afores in the system and a relevant insurer in its sector.
Citi Bank México will have around 4,000 employees and Banamex will have approximately 39,000 employees. “Due to its operating characteristics, Citi México will not require branches for its operation, since its business is focused on institutional banking: multinational clients, corporates, institutions and companies, both national and global, with international operations with issues in the markets. debt and equity, as well as the purchase and sale of securities and currencies; treasury, payment and international transfer services; foreign trade financing, custody of securities. As well as its wealth and private banking services, among others. Banamex, on the other hand, will focus on consumer banking and will be responsible for operating its network of 1,284 branches and 9,152 ATMs throughout the country,” he adds.
Although the corporate declined to give an investment figure derived from this restructuring, it emphasized that the separation of businesses will allow both banks to better focus their resources on serving clients. “As Jane Fraser, CEO of Citi, has mentioned on several occasions, when Citi separated commercial banking from corporate banking in countries in Asia and Latin America, she highlights that both banks grew faster than they did before said separation. “, concluded the bank.
Although Citi has decided to get rid of the Mexican bank after more than 22 years, Banamex continues to be the fourth bank by assets – behind BBVA, Santander and Banorte – in the country, with a share of 11.11% of the sector and still has more than a thousand branches and a not inconsiderable portfolio of 23 million customers.
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