Citigroup is ending its consumer banking operation in Mexico as part of a broad strategic shift under CEO Jane Fraser. The bank announced on Tuesday that it’s exiting the consumer, small business and middle market banking operations of its Mexican business, known as Banamex. Citi, which has operated in Mexico for over a century, said it would continue to have an institutional presence in the country, focused on its private banking clients.
Since taking over as CEO Fraser has sought to streamline the bank’s operations and bolster investors’ confidence after years of mismanagement and scandal. As part of the bank’s broader “refresh,” Fraser shed most of Citi’s consumer banking operations in Asia to focus more on wealthy clients and the bank’s credit card business.
Analysts have for years pushed Citigroup to offload the Banamex unit, which the bank acquired in 2001. At the time, Citigroup had hoped to take advantage of Mexico’s economic recovery and give the American bank an edge in global markets. The Mexican unit was dogged by scandals, and Citigroup eventually paid $97 million to settle federal money-laundering claims.