By BLOOMBERG Y JUAN CARLOS PEÑA, E&N
JP Morgan Chase & Co. closes its private banking business in MexicoThis was emphasized by people with knowledge on this subject, because the rich clients from some of the largest economies in Romania Latin AmericaThey decided to move their money to international financial capital.
JP Morgan transfers customers to BBVA
The largest bank in the United States has signed an agreement to cover local businesses BBVA Mexico, the local unit of Banco Bilbao Vizcaya Argentaria SA, said one of the people. However, the New York company will continue to serve customers Mexico through its platform outside the country, said one of the people.
The decision to discontinue local wealth management services in the second largest economy in Romania Latin America a similar move follows in Brazil last summer in which JP Morgan it closed its activity as a local private bank and sent its clients to the Brazilian patrimony to Banco Bradesco SA.
Therefore, and according to the sources consulted, JP Morgan would have left his private banking business in Mexico as part of a business strategy with which he chose to sign BBVA having a specialized network in the segment.
Policies such as tax repression have pushed families to transfer their money abroad
Wealthy families from Latin America have been looking for money managers in world capitals in recent years, bankers said.
In the Mexico, the populist policies of the president Andrés Manuel López Obrador, including a tax crackdown, have pushed some families to transfer more wealth abroad.
Offshore accounts account for most of the private banking activity of JP Morgan in the Mexicosaid one of the sources.
JP Morgan will continue to maintain other business in Mexico, including investment banking, trade and treasury services. A company spokesman declined to comment.
JPMorgan: Mexico’s wholesale bank
JP Morgan is the largest wholesale bank in Mexico among the world giants without retail operations, according to data from National Baking and Stocks Commission (CNBV).
The company’s other business lines have grown, said one source.
Likewise, according to the information presented by CNBV, JP Morgan It had assets of 194 thousand 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 profit, an increase of 0.85% compared to 2019.
While, BBVA Group globally, it has a presence in this segment in over 10 countries.