07:37 AM EST, 11/29/2024 (MT Newswires) -- Citigroup ( C ) expects to complete next week the separation of Mexican consumer bank Banamex's systems from its other operations in Mexico, a key step ahead of its planned US and Mexican initial public offering in late 2025 or after, The Wall Street Journal reported Friday, citing the bank.

Citigroup ( C ) intends to sell a portion of its stake in Banamex through an IPO and gradually divest the rest over time, according to the report.

Banamex, with over $4.7 billion in revenue in the first nine months of 2024 and nearly 20 million customers, is the largest of the 14 international consumer businesses Citigroup ( C ) is planning to divest as part of Chief Executive Jane Fraser's turnaround strategy.

"The spinoff will free up capital to reinvest in some businesses that generate higher returns," Citigroup ( C ) Chief Financial Officer Mark Mason was quoted by The Wall Street Journal as saying. Mason said Banamex "is a great business" but does not fit in Citigroup's ( C ) strategy.

Citigroup ( C ) did not immediately respond to MT Newswires' request for comment.

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