08:13 AM EST, 11/29/2024 (MT Newswires) -- (Updates with Citigroup ( C ) response in the fifth paragraph.)

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 ) declined to respond to MT Newswires' request for comment on the WSJ report, but noted that it did say during its Q3 earnings call that it expected the separation to be completed in Q4.

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