Citi Dumps Mexico Business

Shares of Citigroup (NYSE: C) ticked up 0.73% in after-hours trading on Tuesday after the big bank announced that it is exiting from its consumer, small business, and middle-market banking operations in Mexico. Details: Citi, which has operated in Mexico for over a century, still plans on running its locally-licensed banking business in the country. Quote: “The decision to exit the consumer, small business and middle market banking businesses in Mexico is fully aligned with the principles of our strategy refresh – we’ll be able to direct our resources to opportunities aligned with our core strengths and competitive advantages, focus on businesses that benefit from connectivity to our global network, and we will further simplify our bank.” - Citi CEO Jane Fraser. Analysis: The departure results in Citi having its only consumer business in the United States. Hopefully, this allows Citi to reenergize and focus on that U.S. market. Meanwhile, with Citi reducing its worldwide footprint for years now, investors have to ask if this reduction is a bit too much? Numbers: Shares of Citi are down 3% in the past six months, but up 11.52% over the past 30 days. Final Thoughts: Citi reports earnings on Friday. Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/