Banamex IPO Plans Advance as Citi Sells 49%

MEXICO · BANKING

Citigroup has now sold 49% of Banamex, the Mexican bank it is separating from, and analysts met Banamex executives in Mexico City this week to prepare the planned Banamex IPO. The stake sales are in Citi’s own filings, while the analyst meetings come from press reports that cite unnamed sources, and Citi and Banamex declined to comment.

For US readers this matters twice, because Citigroup, which trades in New York as C, is finishing its exit from Mexican retail banking, and a share sale would put a large Mexican lender in front of international investors. The press reports say investor meetings were held in New York earlier this month, but no listing venue has been announced.

Earlier this week Banamex sold US$900 million of capital bonds, as we covered in Banamex Prices US$900 Million Capital Bonds. Citi’s earlier 24% stake deal is covered in our earlier report.

How Citi Reached 49% of Banamex

Citi’s quarterly financial supplement, filed with the US Securities and Exchange Commission on Tuesday 13 October 2026, lists three Banamex stake sales: 25.0% in the fourth quarter of 2025, 22.6% in the second quarter of 2026 and 1.4% in the third quarter of 2026. Those add up to 49.0%, which is our arithmetic, and leave Citi with about 51%.

Mexican press reports name the buyer of the first 25% as businessman Fernando Chico Pardo, who now chairs Banamex. Citi’s report for the second quarter, filed on 6 August 2026, says the 22.6% closed on 29 April 2026 with institutional investors and family offices, as part of a 24% stake that buyers had agreed to acquire.

That filing expected the remaining 1.4% to close in the third quarter, and the 13 October supplement lists it as done. Chief executive Jane Fraser told analysts the same day that the total divested had reached 49% and that the IPO would follow deconsolidation.

Why Early 2027 Matters for Citi

Citi’s filing says it will deconsolidate Banamex, meaning stop adding the bank’s accounts to its own, once it owns less than 50% of the voting stock and has no substantive participating rights. On current expectations Citi may deconsolidate in early 2027, the filing says, although the timing depends on several factors and may change.

As of 30 June 2026 Citi carried about US$9 billion of unrealized currency translation losses attributed to Banamex, net of hedges and taxes. Citi will record them in earnings once Banamex meets the test for being held for sale, and the filing says the cumulative effect will be neutral for Citi’s regulatory capital.

The filing adds that the timing and structure of any further sale, including the proposed Banamex IPO, will depend on financial considerations, market conditions and regulatory approvals. The documents we reviewed give no IPO date, price range or listing venue.

Citi reported third-quarter net income of US$5.2 billion on 13 October 2026, up from US$3.8 billion a year earlier on a reported basis. The prior-year quarter included a US$726 million goodwill impairment tied to Citi’s agreement to sell a 25% stake in Banamex.

What the Analyst Meetings Show

El Financiero and La República published a Bloomberg report on 22 October 2026 saying that analysts from banks helping to sell the shares travelled to Mexico City this week to meet Banamex management. The report says the share sale is planned for early next year and rests on people familiar with the matter who asked not to be named.

The executives included chairman Chico Pardo, chief executive Edgardo del Rincón and chief financial officer Patricio Diez de Bonilla, the report says. They discussed financial projections for the coming years while the analysts build the models that will be used to market the bank to investors.

Citi and Banamex declined to comment, according to the same report. We could not confirm the meetings with either company, so they should be read as reported and not as confirmed.

Valuation and Profit Questions

Gilberto García of Miranda Partners, an advisory firm, said in the report that the offering is likely to price above book value, which would value Banamex at about US$12 billion. He noted that the stake sold to Chico Pardo went at 0.8 times book value and the later sales at 0.85 times.

The report put Banamex’s return on equity at about 11%, against more than 30% in August for Banorte, a large Mexican bank that is already listed, and about 24% for BBVA Mexico, citing regulator data. García said that cutting costs, which are higher than at those rivals, would do the most to narrow the gap.

The Bond Sale That Came First

Banamex said on 19 October 2026 that it placed US$900 million of perpetual Additional Tier 1 capital bonds paying 9.50% a year, rated Ba2 (hyb) by Moody’s and BB- by S&P. The offering was oversubscribed, with buyers in the United States, Europe, Asia and Latin America, the bank said in its statement.

Finance chief Diez de Bonilla called it the bank’s second successful international capital markets deal this year. The bank said the issue further strengthens its capital structure.

What It Means for You

Investors in Citigroup should note that the Banamex exit is a multi-quarter process, with about US$9 billion of translation losses waiting to be booked in earnings, though Citi says the effect on regulatory capital is neutral. Anyone wanting direct exposure cannot yet buy Banamex shares, because Citi has announced no offering date.

Banamex account holders are not affected by the stake sales in any way the filings or the reports describe. Our guides Mexico explained for 2026 and Mexico’s power structure explained set out how the banking sector fits into the economy, and our Mexico City city guide covers daily life in the capital where the analysts met.

What Is Not Known

The date, size, price range and venue of the Banamex IPO have not been announced, and the analyst meetings rest on unnamed sources. Citi has not said how much of its remaining 51% it will sell in the offering, though it must fall below 50% of the voting stock to deconsolidate.

The roughly US$12 billion valuation is one analyst’s estimate, not a company figure. A 14 October Bloomberg report said Citi leads the banks and targets over US$3 billion, but that rests on unnamed sources.

Citi’s third-quarter quarterly report on Form 10-Q had not appeared in the SEC filing list when we checked on 23 October. The latest written detail on timing is therefore the 6 August filing, while Fraser repeated on 13 October that deconsolidation is expected next year.

Frequently Asked Questions

When is the Banamex IPO?

No date has been announced. Press reports say the share sale is planned for early next year, and Citi’s filing says it may deconsolidate Banamex in early 2027.

How much of Banamex has Citi sold?

Citi has sold 49%, made up of stakes of 25.0%, 22.6% and 1.4%. That leaves it with about 51%, by our arithmetic.

How much could Banamex be worth?

One analyst quoted in the press reports, Gilberto García of Miranda Partners, estimates about US$12 billion if the shares price above book value. It is an estimate and not a company figure.

Why does Citi have US$9 billion of losses tied to Banamex?

They are currency translation losses built up while Citi owned a Mexican bank whose books are in pesos. Citi will record them in earnings once Banamex meets the held-for-sale test, and it says the cumulative effect on regulatory capital will be neutral.

What did Banamex sell on 19 October?

It placed US$900 million of perpetual Additional Tier 1 capital bonds paying 9.50% a year. The bank said the offering was oversubscribed and strengthens its capital structure.

Sources: Citigroup third-quarter 2026 financial supplement, SEC filing of 13 October 2026; Citigroup third-quarter 2026 results release, 13 October 2026; Citigroup Form 10-Q for the quarter ended 30 June 2026; El Financiero, 22 October 2026; La República, 22 October 2026; Citigroup third-quarter 2026 earnings call transcript, 13 October 2026; Bloomberg Línea, 14 October 2026; Banamex statement of 19 October 2026 as published by Índice Corporativo.

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