The agreement with businessman Fernando Chico Pardo to acquire 25% of Banamex has a “high degree of certainty,” and the association could boost the valuation of the Initial Public Offering, declared Citi CEO Jane Fraser.
The executive director of the American financial group also mentioned the support of the Mexican government.
Citi announced last month that it will sell a 25% stake in its Banamex retail unit to Mexican billionaire and president of airport operator Asur for approximately $2.3 billion.
The bank is looking to list the rest of its operations in Mexico and the United States, and last week rejected an unsolicited offer from Mexican mining and transportation conglomerate Grupo México.
Lee: Grupo México regrets that Citi has rejected its offer for Banamex
Citi reported its third-quarter financial statements on Tuesday and beat estimates for its profits, which rose as all of its divisions posted record revenues, despite posting a loss on the sale of a stake in its Mexico unit.
Fraser said the profits reflected the bank’s restructuring in recent years and a positive economic environment, underpinned by US consumer spending.
Citi, like its competitors, benefited from the recovery in capital markets.
Mega trades surged despite uncertainty over the impact of President Donald Trump’s tariff policies. Citi’s banking division posted the highest revenue growth among its units, up 34% from a year earlier.
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The rising profits came even though Citi posted a $726 million loss on the sale of its 25% stake in its Mexican subsidiary Banamex.
Adjusted earnings per share, excluding this loss, were $2.24 per share, versus analysts’ consensus of $1.90, according to LSEG.
Citi shares have gained 42% in 2025, outpacing gains of 26% for JPMorgan and 20% for Wells Fargo. While Citi is making up lost ground, it still has the lowest share price among its largest peers compared to its book value.
With information from Reuters
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