Citigroup’s 3Q25 Profit Up 16% Despite Banamex Stake Sale

Citigroup reported a 16% increase in its 3Q25 net income, reaching US$3.8 billion. This result occurred despite a significant accounting loss from the sale of a minority stake in its Mexican subsidiary, Banamex.

The corporation’s positive financial performance stems from record revenues across all its operating divisions. This growth, according to its 3Q25 results, was driven by a resurgence in large-scale corporate deal-making during the quarter, which allowed Citigroup to offset the adverse impact from the partial divestment in Mexico and navigate an uncertain global economic environment.

The Banamex sale is part of a broader corporate strategy led by Jane Fraser, CEO, Citigroup. The strategy seeks to optimize the group’s global portfolio by divesting from certain international markets to concentrate resources on businesses with higher returns. Citigroup acquired Banco Nacional de México (Banamex) in 2001 in a transaction valued at US$12.5 billion.

The divestment process has faced complexities. Negotiations with Grupo México, a major industrial conglomerate, failed to produce an agreement in 2023. This development prompted Citigroup to reevaluate its exit plan for the Mexican retail business, leading to the current hybrid strategy that combines a strategic stake sale with a future Initial Public Offering (IPO).

Executing its revised strategy, Citigroup finalized the sale of a 25% stake in Banamex to Fernando Chico, President, ASUR, for about US$2.3 billion. This transaction required a US$726 million write-down that directly impacted the bank’s third-quarter earnings.

Subsequently, Grupo México submitted an unsolicited offer of US$9.3 billion to acquire 100% of Banamex. The proposal included plans to either purchase the stake already sold to Chico or to respect his rights as a minority shareholder. Grupo Mexico intended to retain 60% of the investment and offer the remaining 40% to other private investors and pension fund administrators.

Citigroup later rejected the offer. According to a statement from the corporation, the decision was based on "financial and deal certainty considerations," reaffirming its commitment to the original plan. The market had a negative reaction to Grupo México’s proposal, as its market value fell by an amount equivalent to the proposed purchase price, which in turn affected the Mexican Stock Exchange.

Citigroup's plan remains to establish Chico as a strategic partner and proceed with an IPO to divest its remaining interest in the unit. Through this course of action, the financial institution aims to maximize shareholder value and ensure an orderly transition for the Banamex business.