Citigroup Inc. ($C) Stock: Gains on $2.3B Banamex Stake Sale to Mexican Tycoon

TLDR

• Citigroup agreed to sell 25% of Banamex for $2.3B to Mexican billionaire Fernando Chico Pardo.
• The deal is expected to close in H2 2026, ahead of Banamex’s planned IPO.
• Chico Pardo will become Banamex’s chairperson after acquiring 520M shares.
• Regulatory approval was secured after talks with Mexico’s President Claudia Sheinbaum.
• Citi shares have surged 47.5% YTD, far outpacing the S&P 500’s 12.9% gain.

Citigroup Inc. (NYSE: C) closed at $101.65 on September 24, 2025, down 1.31% during regular trading but gained 0.7% in extended hours.

Citigroup Inc. (C)

The move came after Citi announced it would sell a 25% stake in its Mexican retail banking unit, Banamex, for 42 billion pesos ($2.3 billion) to local billionaire Fernando Chico Pardo. The deal is expected to close in the second half of 2026, with Chico Pardo becoming Banamex’s chairperson.

Background to the Sale

Citi’s decision comes after a failed attempt to fully sell Banamex in 2023. Former Mexican President Andrés Manuel López Obrador blocked the sale, insisting the buyer be Mexican and banning mass layoffs. This time, CEO Jane Fraser secured political backing by meeting with President Claudia Sheinbaum, who approved the deal and welcomed Chico Pardo’s bid.

Banamex, one of Mexico’s largest financial institutions, has grown faster than peers, making it a strategic asset. Citi views the divestiture as key to simplifying its global business, focusing on markets where it holds stronger competitive advantages.

Financial Impact and Impairment Charge

Citigroup will record a goodwill impairment charge of about $726 million related to the transaction. The bank stressed the charge is capital-neutral, ensuring no impact on regulatory ratios. Citi reiterated that the Banamex divestiture remains a strategic priority and that the IPO’s timing and structure will depend on market conditions and regulatory clearances.

Analyst and Market Views

Truist Securities raised its price target on Citi to $112 from $105, maintaining a “Buy” rating. Analysts highlighted improved capital markets revenue as a driver, though higher compensation expenses remain a headwind. Bloomberg reported that Chico Pardo personally negotiated the deal, underscoring investor confidence in Banamex’s long-term growth potential.

CEO Jane Fraser called Chico Pardo’s investment “a resounding endorsement of Banamex’s strength and potential.” The move also signals continuity in Mexican government policy, prioritizing domestic ownership in critical banking assets.

Performance Overview

Citigroup stock has been one of the standout performers in the financial sector. As of September 24, 2025, the stock is up 47.54% year-to-date compared to a 12.86% gain for the S&P 500. Over the past year, Citi has surged 70.72%, and its three-year return stands at 157.56%. Over five years, shares have climbed nearly 190%, far ahead of the broader market.

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