MEXICO CITY/NEW YORK, Oct 14 (Reuters) – Swiss bank UBS (UBSG.S) is closing its brokerage in Mexico, mentioned three folks aware of the matter, following in the footsteps of different massive international monetary establishments which have opted to go away Latin America’s second largest economic system.
The causes for the closure weren’t instantly clear. It was additionally not identified if UBS would pull different native companies.
Two of the sources mentioned UBS will preserve a presence in Mexico, however handle operations from different areas.
“We remain fully committed to our business in Mexico,” UBS mentioned in an announcement. “To ensure alignment with our global strategic priorities, we review all of our businesses regularly to identify growth opportunities and to generate operational efficiencies.”
UBS famous it employed Gustavo Galvan-Duque early this 12 months as head of Wealth Management for Mexico and would hold in search of “local talent.” Galvan-Duque didn’t instantly reply to a request for remark.
Bloomberg initially reported on UBS’ plans to withdraw its brokerage.
In July, Mexican monetary authorities mentioned Deutsche Bank (DBKGn.DE) and JPMorgan (JPM.N) had determined to shut their workplaces in Mexico, sending an indication to analysts that international gamers have been shedding curiosity in a largely stagnant home market.
“It’s related to the lack of movement, and also that the investment environment is not the most favorable,” mentioned wealth advisor Jonathan Zuloaga of Columbus, a Mexican funding consultancy.
He added that the local weather underneath President Andres Manuel Lopez Obrador, who took workplace in 2018, has not helped. The leftist has clashed with the business sector over selections akin to canceling the development of a brand new airport and altering guidelines in the vitality sector.
“The fact that there has been so much animosity from the beginning of the current administration towards the private sector is not a good sign,” Zuloaga added.