Mexico's Banking System Solid; Citigroup to Sell Final Banamex Stake Soon, Says Banxico

Mexico's banking system continues to demonstrate robust health, maintaining capital levels significantly exceeding regulatory requirements, according to the latest report from the Bank of Mexico (Banxico).

The central bank anticipates that Citigroup will complete the sale of its final 1.4% share in Banamex within the next few months. This move follows previous sales, including a 24% stake sold to a group of institutional investors for approximately $2.5 billion in February 2026, and a 22.6% stake sold in April 2026. These transactions mark the final stages of Citigroup's divestment from Banamex.

Banxico's quarterly report highlights the system's resilience, noting that its capitalization levels enable financial institutions to effectively manage potential operational risks. In March 2026, the capitalization index (ICAP) for multiple banking institutions reached 20.32%. This figure represents an increase from 20.17% observed in December 2025.

The report attributes this rise in regulatory capital to an expansion in earned capital, which more than offset a growth in risk-weighted assets. While increased credit, operational, and market risk assets contributed to the latter, the overall capital position remains strong. The expansion in regulatory capital was partially balanced by dividend payments from some institutions during the period.