By BLOOMBERG Y JUAN CARLOS PEÑA, E&N
JPMorgan Chase & Co. includes its private banking activities MexicoThis was noticed by those with knowledge of the subject, as high net worth clients in some of the largest economies in Latin AmericaThey have decided to move their money to international financial capitals.
JP Morgan transfers clients to BBVA
The largest bank in the United States has signed an agreement to refer local businesses BBVA Mexico, the local unit of Banco Bilbao Vizcaya Argentaria SA, one of the people said. Still, the New York-based company will continue to serve customers Mexico through its platform outside the country, one of the people said.
The decision to discontinue local asset management services in the second largest economy in Latin America follows a similar move last summer in Brazil, in which JPMorgan closed its local private banking business and referred Brazilian wealth clients to Banco Bradesco SA.
Therefore and according to the sources consulted, JP Morgan he would leave his private banking behind Mexico as part of a business strategy, with which he chose to participate BBVA by having a specialized network in the segment.
Policies such as tax repression forced families to transfer their money abroad
The wealthy families of Latin America they had been looking for money managers in the capitals of the world in recent years, the bankers said.
In Mexico, the president’s populist policies Andrés Manuel López Obrador, including a tax crackdown, have prompted some families to transfer more assets abroad.
Offshore accounts represent the bulk of the private banking business of JPMorgan in Mexicosaid one of the sources.
JPMorgan will continue to maintain other businesses in Mexicoincluding investment banking, commerce and financial services. A company spokesman declined to comment.
JPMorgan: Wholesale Bank of Mexico
JPMorgan is the largest wholesale bank in Mexico among global giants with no retail operations, according to data from the National Baking and Stocking Commission (CNBV).
The company’s other industries have grown, one source said.
Likewise, according to the information presented by CNBV, JP Morgan It had assets of 194 thousand 286 million pesos at the end of 2020, which corresponds to 1.74% of the total funds raised by banks in Mexico
At the end of the year, it collected 864 million pesos in profit, a growth of 0.85% over 2019.
While, BBVA group worldwide it is present in this segment in more than 10 countries.