Citi has agreed to sell a 25% stake in its Mexican retail banking subsidiary Banamex to an entity controlled by Fernando Chico Pardo and his family for approximately 42bn pesos ($2.3bn).
The deal, which involves roughly 520 million shares, is based on a price-to-book ratio of 0.80 times Banamex’s local GAAP book value at closing.
Banamex network spans about 1,300 branches and 9,000 ATMs, serving over 13.6 million retail banking clients, 6,000 commercial banking clients, and 8.6 million pension fund management customers.
The sale of Banamex is a key focus for Citi, and the company has noted that the proposed IPO for Banamex will be contingent on market conditions and regulatory consents.
With this transaction, Fernando Chico Pardo is set to become the chair of Grupo Financiero Banamex upon completion.
Current leadership positions within Banamex will remain unchanged, with Ignacio (Nacho) Deschamps as chair of Banco Nacional de México and Manuel Romo as CEO of Banamex.
Citi has recorded a goodwill impairment charge of around $726m in All Other—Legacy Franchises due to the bid from Fernando Chico Pardo, which has been accounted for in the third quarter of 2025 expenses and does not impact Citi’s capital.
Subject to customary closing conditions and Mexican regulatory approvals, the transaction is expected to conclude in the latter half of 2026.
This move is part of Citi’s strategy to divest its international consumer businesses and concentrate on its primary interconnected businesses.
Citi CEO Jane Fraser said: “This investment from Fernando Chico Pardo, one of the most respected business leaders in Mexico, is a resounding endorsement of Banamex’s strength and potential.
“It is also a reflection of the long-term strategic relationship we are building with Fernando as we work towards a planned public listing and realize the full value of this iconic institution for our shareholders.”
Pardo stated: “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.
“We are also 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.”
Following the recent agreement to sell its consumer business in Poland, Citi is nearing the completion of its consumer business exit strategy.
Additionally, Citi is planning to expand its operations in Charlotte, North Carolina, with a $16.1m investment in an office facility in Mecklenburg County, which is projected to create 510 new jobs in July.
