Swiss bank UBS closes brokerage business in Mexico

Reuters.- The swiss bank UBS is closing its brokerage business in Mexicothree sources with knowledge of the matter told Reuters, following in the footsteps of other large global financial institutions that have decided to leave the Latin American country.

The reasons for the shutdown were not immediately clear, or whether it would be extended to all the services the company offers locally. Two of the sources said that UBS will maintain its presence in Mexico, but managed from other regions. Bloomberg initially reported on the shutdown.

Through a position sent to Reuters, UBS said it was continuing to strengthen its business for the country, after the hiring at the beginning of the year of Gustavo Galván-Duque as head of Asset Management of Mexico. The executive did not immediately respond to a request for comment.

Read: Alpek seeks to achieve zero greenhouse emissions by 2050

“We remain fully committed to our business in Mexico,” said UBS, without giving further details. “To ensure alignment with our global strategic priorities, we review all of our businesses regularly to identify growth opportunities and generate operational efficiencies.”

It is not the first institution to close offices in the country. ANDn July, financial authorities reported that Deutsche Bank and JPMorgan they had decided to lower their curtains, which, according to analysts, reflects that the domestic market would be losing interest for large global players.

“It is an issue related to the lack of dynamism, but also that the investment environment is not the most favorable,” said Jonathan Zuloaga, advisor to the Columbus consultancy. “The fact that there is so much animosity from the beginning of the current administration towards the private sector is not a good sign.”

Since taking office at the end of 2018, President Andrés Manuel López Obrador has clashed hard with the business sector, after decisions such as canceling the construction of a new airport and changing the rules in the energy sector unleashed concerns in the markets.