Citigroup has made a significant step toward transforming its operations in Mexico, signing a deal to sell 25% of Banamex to an investment firm under the authority of Mexican business executive Fernando Chico Pardo. With an estimated value of 42 billion pesos (around $2.3 billion), the agreement sets Banamex on a new chapter of local ownership as Citi turns its attention towards institutional banking in the country.
Fernando Chico Pardo will become Chair of Banamex’s Board upon closing the transaction, expected in the second half of 2026, subject to regulatory approval, while Manuel Romo will stay Chief Executive Officer. This leadership structure aims to offer consistency while solidifying Banamex’s identity as a financially grounded local institution. For Citi, the move is in line with its larger plan to reduce consumer banking in regions where it sees little growth potential. The U.S. bank has been leaving retail operations in several countries since 2021, diverting resources to corporate customers, international commerce financing, and investment banking.
Citigroup has made it simple that this share sale is only a part of a bigger strategy: the ultimate public listing of Banamex. While the IPO’s timeline hasn’t been set, the bank has stressed that including minority investors would improve market governance and market Before stocks are made available to the public, position. Citigroup estimates the agreement will generate a one-time goodwill impairment charge of $726 million, capital-neutral. The bank sees this as part of a long-term plan for change, even if it is an accounting error.
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In Mexico, where Banamex is seen as a cornerstone of the financial system, the agreement has political clout. Government officials have long encouraged more domestic ownership of the bank; Fernando Chico Pardo’s participation is therefore greeted as a vote of confidence in Mexico’s economic trajectory. Meanwhile, analysts highlight possible obstacles going ahead: regulatory approvals, the strength of Mexico’s capital markets, and global investor appetite will all influence the IPO. Furthermore, influencing Banamex’s valuation when its stock is finally released could be currency volatility, changes in market conditions and move towards minority investors.
