Citigroup expects to remove its Mexican consumer bank, Banamex, from its balance sheet by early 2027. CFO Gonzalo Luchetti announced the timeline at the Barclays Global Financial Services Conference.
The deconsolidation precedes a planned initial public offering once Citigroup’s ownership stake falls below 50%. This separation will trigger an estimated $9 billion non-cash charge to net income.
The charge results from the recognition of cumulative currency translation adjustment losses. Executives confirmed the accounting event will not impact Citigroup’s regulatory capital or tangible common equity.