Banamex Listing May Be Delayed to 2026

Citigroup Inc.'s effort to list its retail banking operations in Mexico may be extended to 2026, given market conditions and the need to obtain regulatory approvals, Bloomberg reported, noting that the US banking group is trying to attract major investors.

The US bank, which initially targeted 2025 for the listing, needs a series of regulatory approvals for the IPO in both Mexico and the US as it tries to attract potential investors, Chief Financial Officer Mark Mason said, quoted by Bloomberg. According to him, the bank could place about 15% of the business in offers over a period of 12 to 24 months, before it completely exits the Mexican division.

Citigroup completed the separation of Citibanamex into Grupo Financiero Citi Mexico and Grupo Financiero Banamex late last year in preparation for Banamex's IPO. The split followed a failed attempt to sell its retail operations after then-Mexican President Andres Manuel Lopez Obrador imposed conditions. A bid by Grupo Mexico SAB, owned by billionaire German Larrea, was canceled in 2023.

Jane Fraser, Citigroup CEO, which launched the effort to sell the retail business in 2022, said the bank wanted to sell the division as soon as possible.

Mark Mason said, "However, given market conditions and regulatory approvals, it is possible that this will happen in 2026. We are doing everything we can to be ready as soon as possible."

Mason stressed that they did not provide a specific timeline for the listing as the bank is considering alternative IPO structures and potential investors. Both Citi executives made the announcements about the sale of the operations following the publication of Citigroup's financial results for the fourth quarter of 2024, when they also announced share buybacks worth $20 billion.

For Banamex (Banco Nacional de Mexico), the challenge will be to demonstrate that it has a clear business plan to regain lost market share, in order to stimulate demand before the IPO, notes Bloomberg.

As a combined division, Citibanamex has seen its share of the country's total loan portfolio fall from more than 22% in 2001, when Citigroup bought it amid a wave of acquisitions by foreign banks, to just over 8%, according to the most recent data from Mexican regulators (in November). As a result, the bank fell from second place to fourth, behind Banco Bilbao Vizcaya Argentaria, Banco Santander and Grupo Financiero Banorte.