© Reuters. FILE PHOTO: A Citibank sign is seen outside a bank branch in New York March 4, 2009. REUTERS / Lucas Jackson / File Photo
NEW YORK (Reuters) – Citigroup Inc announced Tuesday that it will be exiting its Citibanamex consumer banking business in Mexico, ending a two-decade retail effort that was the last of its retail banking projects outside the United States.
Citi said it intends to focus its retail banking business on global wealth, payments and lending and a targeted retail presence in the US.
The output does not include City group (NYSE 🙂 institutional business in the country.
Chief Executive Officer Jane Fraser said in a statement that the move is in line with the "strategy refresh" she has undergone the bank, including exits from consumer stores in Asia that she found the bank had insufficient Size and market share to compete.
Prior to becoming CEO, Fraser was responsible for Citigroup's Mexico business and global consumer bank. In that role, she built on the bank's investments to rejuvenate the Mexican consumer business known as Banamex.
Institutional investors, frustrated by Citigroup's relatively poor investment returns, have long called for the Citibanamex bank to give up.
The bank did not estimate the cost of getting out of business or the potential income from a sale. The company currently has approximately $ 4 billion in tangible capital.
Citigroup has announced that it will release around US $ 7 billion in tangible capital from its exits in Asia.
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