The Consumers Citi Keeps and the Ones It SellsNarrow moat

Citigroup (C) — moat facet

Citi is keeping its American cardholders and wealth clients and selling most of its consumers abroad.

Citi's consumer clients fall into two groups: the ones it wants and the ones it is selling. It holds $409 billion of consumer loans at the end of 20251, most of them in American cards: U.S. Consumer Cards averaged $177 billion of loans in the second quarter of 20262.

Legacy Franchises, June 2026 ($bn)47Deposits17Retail banking loans10Card balances8Corporate loansCitigroup Form 10-Q Q2 2026
What is left to sell.

The ones it is selling sit in Legacy Franchises. In June 2026 that business still had 1,288 retail branches, $47 billion of deposits, $17 billion of retail banking loans and $10 billion of card balances3, mostly in Mexico through Banamex. In 2021 Citi announced exits from consumer banking in 13 markets, keeping four wealth centres4, and it completed the sale of its Polish consumer business in the second quarter of 20265.

The consumers it keeps are concentrated in one country and one product. That makes the consumer franchise easier to run and more exposed to American credit conditions.

The exits are not free. Citi recorded a loss of about $186 million before tax on the announced sale of its Polish consumer business in the second quarter of 20256.

The Mexican book has grown while it waits to be sold. Mexico consumer and small-business loans were $26.0 billion in the first quarter of 2024 and $30.0 billion at the end of 2025, and deposits $41.0 billion and $43.8 billion7. The Mexican consumer loss rate rose from 4.67% to 5.91% of loans over the same quarters8, and All Other's net credit losses rose 43% in the second quarter of 2026 on higher volume and seasoning in Mexico Consumer9.

Asia consumer loans fell from $6.5 billion in the first quarter of 2024 to $2.5 billion at the end of 202510.

Mexico also carried $10 billion of card balances at June 202611.

Legacy Franchises deposits are the measure of how much is left to sell. They should fall towards zero as Banamex leaves the books; a figure still near $47 billion at the end of 2027 would mean the exit had stalled.

Moat trajectory: Narrowing

Legacy Franchises: 1,288 branches and $47bn of deposits in June 2026.

The number that tests this moat
Reported
Legacy Franchises deposits, latest quarter
$47bn (June 2026)

Consumer business still to be sold; still near $47bn at the end of 2027 would mean the exit had stalled.

Source: Citigroup Form 10-Q Q2 2026, divestitures ↗
References
  1. ReportedIt holds $409 billion of consumer loans at the end of 2025, most of them in American cards: U.S. Consumer Cards averaged $177 billion of loans in the second quarter of 2026.
    Citigroup Form 10-K for fiscal 2025 - business description, segments, history, footprint, employees and executives. — FY2025 · publ. 20 February 2026 · source ↗
  2. ReportedIt holds $409 billion of consumer loans at the end of 2025, most of them in American cards: U.S. Consumer Cards averaged $177 billion of loans in the second quarter of 2026.
    Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - Wealth and U.S. Consumer Cards results and key metrics. — Q2 2026 · publ. 14 July 2026 · source ↗
  3. ReportedIn June 2026 that business still had 1,288 retail branches, $47 billion of deposits, $17 billion of retail banking loans and $10 billion of card balances, mostly in Mexico through Banamex.
    Citigroup Form 10-Q for the quarter ended 30 June 2026 - divestitures: Banamex stake sales and CTA losses, the Russia and Poland sales, and Legacy Franchises balances. — Q2 2026 · publ. 6 August 2026 · source ↗
  4. ReportedIn 2021 Citi announced exits from consumer banking in 13 markets, keeping four wealth centres, and it completed the sale of its Polish consumer business in the second quarter of 2026.
    Citigroup Form 10-K for fiscal 2021 - the April 2021 strategic refresh: four wealth centers, exits of consumer franchises in 13 markets and the January 2022 Citibanamex exit announcement. — FY2021 · publ. February 2022 · source ↗
  5. ReportedIn 2021 Citi announced exits from consumer banking in 13 markets, keeping four wealth centres, and it completed the sale of its Polish consumer business in the second quarter of 2026.
    Citigroup Form 10-Q for the quarter ended 30 June 2026 - divestitures: Banamex stake sales and CTA losses, the Russia and Poland sales, and Legacy Franchises balances. — Q2 2026 · publ. 6 August 2026 · source ↗
  6. ReportedCiti recorded a loss of about $186 million before tax on the announced sale of its Polish consumer business in the second quarter of 2025.
    Citigroup Form 10-Q for the quarter ended 30 June 2026 - divestitures: Banamex stake sales and CTA losses, the Russia and Poland sales, and Legacy Franchises balances. — Q2 2026 · publ. 6 August 2026 · source ↗
  7. ReportedMexico consumer and small-business loans were $26.0 billion in the first quarter of 2024 and $30.0 billion at the end of 2025, and deposits $41.0 billion and $43.8 billion.
    Citigroup Historical Quarterly Financial Data Supplement 2021-2025 recast to the first-quarter 2026 segments, Form 8-K exhibit 99.1 - segment revenue, income, capital and returns, All Other and share counts. — FY2021-FY2025 · publ. 3 April 2026 · source ↗
  8. ReportedThe Mexican consumer loss rate rose from 4.67% to 5.91% of loans over the same quarters, and All Other's net credit losses rose 43% in the second quarter of 2026 on higher volume and seasoning in Mexico Consumer.
    Citigroup Historical Quarterly Financial Data Supplement 2021-2025 recast to the first-quarter 2026 segments, Form 8-K exhibit 99.1 - segment revenue, income, capital and returns, All Other and share counts. — FY2021-FY2025 · publ. 3 April 2026 · source ↗
  9. ReportedThe Mexican consumer loss rate rose from 4.67% to 5.91% of loans over the same quarters, and All Other's net credit losses rose 43% in the second quarter of 2026 on higher volume and seasoning in Mexico Consumer.
    Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns, efficiency, capital returned, tangible book value and All Other. — Q2 2026 · publ. 14 July 2026 · source ↗
  10. ReportedAsia consumer loans fell from $6.5 billion in the first quarter of 2024 to $2.5 billion at the end of 2025.
    Citigroup Historical Quarterly Financial Data Supplement 2021-2025 recast to the first-quarter 2026 segments, Form 8-K exhibit 99.1 - segment revenue, income, capital and returns, All Other and share counts. — FY2021-FY2025 · publ. 3 April 2026 · source ↗
  11. ReportedMexico also carried $10 billion of card balances at June 2026.
    Citigroup Form 10-Q for the quarter ended 30 June 2026 - divestitures: Banamex stake sales and CTA losses, the Russia and Poland sales, and Legacy Franchises balances. — Q2 2026 · publ. 6 August 2026 · source ↗
Sources
Generated September 28, 2026