By BLOOMBERG I JUAN CARLOS PENYA, I & N
JPMorgan Chase & Co. is closing its private banking business in MexicoThis has been pointed out by people with knowledge of the subject, as wealthy clients in some of the largest economies of Latin America, Have decided to move their money to international financial capital.
JP Morgan passes customers to BBVA
The largest bank in the United States signed an agreement to refer local businesses to BBVA Mexico, The local unit of Banco Bilbao Vizcaya Argentaria SA, said one of the people. However, the New York – based firm will continue to provide services to Mexico through his platform abroad, said one of the people.
The decision to discontinue local wealth management services in the second largest economy of Latin America follows a similar move in Brazil last summer in which JPMorgan closed its local private banking business and referred Brazilian wealth customers to Banco Bradesco SA.
Therefore and according to the sources consulted, JP Morgan would be leaving his private banking to Mexico as part of a business strategy, so he chose to sign with BBVA by having a specialized network in the segment.
Policies such as tax repression, pushed families to transfer their money abroad
The wealthy families of Latin America they have been looking for money managers in world capitals in recent years, bankers said.
en Mexico, The populist policies of the president Andrés Manuel López Obrador, Including tax crackdowns, have pushed some families to transfer more wealth abroad.
Extraterritorial accounts account for most of the private banking business of JPMorgan a Mexico, Said one of the sources.
JPMorgan will continue to keep other businesses in Mexico, Including investment banking, trade and treasury services. A company spokesman declined to comment.
JP Morgan: Wholesale Bank of Mexico
JPMorgan is the largest wholesale bank in Mexico among the world ‘s giants without retail operations, according to data from the National Banking and Securities Commission (CNBV).
The firm’s other business lines have been growing, one source said.
Also, according to the information presented by CNBV, JP Morgan had assets of 194,000 286 million pesos at the end of 2020, equivalent to 1.74% of the total resources managed by banks in Mexico.
At the end of the year, it accumulated 864 million pesos in profits, a growth of 0.85% compared to 2019.
Meanwhile, BBVA group globally it has a presence in this segment in more than 10 countries.